2 The Sixties 1964-70 Flashcards
What was the name given to the rapid technological change of the 1960s, which Wilson promised Britain would catch up to?
‘The White Heat’ of Technological change
- one of his most effective campaign speeches
Why was Heath deemed ‘no match’ for Wilson in 1966?
- Wislon was a better political tactician#
- Protrayed a more attractive image to the voters (family man)
In contrast, Heath came across as stiff and lacking in personality
Who did Wilson challenge, unsuccessfully, for Labour leadership in 1961?
Hugh Gaitskill - made him the obvious canditate in the future
What 2 reasons did Wilson not seem to be of the Left (of the party)?
- Supported Britain’s nuclear deterrent
- Attempted to reform Trade Unions
He had previously been much further left, as he resigned with Bevan over Prescription Charges in 1951
What failure did the ‘wasted years’ of Conservative governments refer to?
The failure of modernisation - which Wilson managed suceed in
How did Wilson’s image reflect modernisation?
- Far removed from Old Etonian style of Eden + Macmillan - not symbolic of any class
- First PM educated at a state secondary school
What suggested that Wilson was, in private, insecure about his leadership?
Relied heavily on a personal team of trusted advisers from OUTSIDE the government and civil service - known as the ‘kitchen cabinet’
- also included economic advisers and ‘inner circle’ MPs
- many felt this restricted ministers access to him and re-enforced suspicions of party rivalries
What 2 countries was it accepted Britain were ‘lagging behind’ by 1964
West Germany and Japan
- modernisation of the economy needed to bring Britain up to speed
What were some characteristics of the economy leading up to 1964?
Trapped in a cycle of ‘stop-go’
- bursts of prosperity always led to inflation, runs on the pound and BoP crises
What deficit had Labour inherited in 1964?
£800M
What 2 usual economic solutions to a large deficit, did Wilson and Callaghan (Chancellor) want to avoid in 1964>
Deflation or Devaluation
What were the Pros and Cons of Deflation as a policy in 1964?
- Would support the value of the pound and prevent inflation
However:
- Aligned with the old ‘stop-go’ policies of previous gov’ts
- Feared it would threaten commitments of extra spending on welfare and technology
What were the Pros and Cons of Devaluation as a policy in 1964?
- Make imports more expensive and help exporters by making British goods cheaper in other countries - aid BoP (£800M deficit)
However:
- Would make Britain weaker in scaling back activities across the globe
- Fears Labour would gain reputation for it after Atlee had in 1949
Who led the Department of Economic Affairs? (DEA)
George Brown
- working class trade unionist background
- to the right of the party
- had a serious alcohol problem and was seen as unpredictable
What were the aims of the DEA?
- set growth targets
- national system of economic planning councils
- voluntary agreements with TU leaders
Why was the success of the DEA undermined?
In competition with Callaghan (Chancellor) and the Treasury
- they even tapped Brown’s phone
- abandoned in 1967
What was Harold Wilson accused of (in terms of managing his cabinet?)
Keeping key personalities happy, rather than picking the best team for the job
- Brown moved to Ministry for foreign affairs - DEA dissolved
What was the price and incomes policy?
Set limits on prices rises and called for wage restraints between unions and employers
- Managed by Price and Incomes board, to keep down inflation
Which Trade Unionist resigned from the cabinet over the Incomes Policy in 1966?
Frank Cousins
What strike in part caused the Sterling Crisis in 1966?
The National Union of Seamen
-Many on the Left shocked at Wilson’s critical attitude towards the strike
What final crises caused the government to accept devaluation in 1967?
- War in the Middle East affecting oil supplies
- National dock strike affected BoP - trade limited
By what % was the pound dropped by in devaluation in 1967?
14%
What actions (as well as devaluation) were taken in Labour in 1967?
- Defence cuts
- Hire purchase restrictions
- raised interest rates
Little different to Tory ‘stop-go’ that preceded
Damaged Labours credibility
What 2nd application was refused just weeks after devaluation?
Entry into the EEC
- made the governments economic policies look even more futile
What were Wilsons views on joining the EEC in 1967?
Mainly on economic grounds
- much of the labour party did not want to join