3.12. Wilson, The Economy, and Unions (2nd term) Flashcards
Which economist’s thinkings laid the foundation for Healey’s first two budgets in March and July 1974?
Keynes
How were tax increases countered?
Higher pensions and increased food subsidies
What percentage did inflation remain at by July 1974?
20%
What type of production was stagnant in 1974?
Manufacturing
How did the coal strike end?
Buying off the miners
In honouring the Social Contract, what did Wilson get rid of?
The Pay Board
What was the Social Contract?
In return for the repeal of 1971 Industrial Relations Act, food subsidies, and a freeze on rent increases, the Trade Union Congress ensured that its members would cooperate with a programme of voluntary wage restraint.
How much had industrial earnings gone up by between 1973 to 1975?
1973: 15%
1974: 19%
1975: 23%
What was the inflation rate at the end of 1974?
28%
Miners were proposing demands that would boost the pay of surface workers by…
94%
When was the Social Contract agreed?
1972
What idea did Jack Jones come up with to help with the rapid increase in wage demands?
He suggested a policy of voluntary restraint based on a flat rate of identical amounts for everyone, of no more than £6 a week.
The TUC accepted this in June 1975
What did Healey realise needed to be cut by 1975?
Public spending
How much did Healey want inflation down to by 1977?
5-7%
Who imposed local authority spending controls?
Anthony Crosland
