3.15 Callaghan, The Economy, and the Unions Flashcards
Was the nosedive of the British economy from the end of 1973 a uniquely British thing?
No - it was a worldwide problem
In the economy there were signs of _____ in 1976
Recovery
From 1960 - 1973, what had economic growth averaged?
3% a year
From 1974-9, what had economic growth averaged?
1.5% a year
In 1974, how much oil had the UK imported?
100m tonnes
In 1974, how much oil had the UK exported?
1m tonnes
When did the UK begin producing oil from the North Sea?
1975
What happened to the economy thanks to North Sea Oil?
The oil account brought dividends with a surplus of balance payments between 1977-8
Under Callaghan: What was the balance of payments deficit approaching?
£1bn
Under Callaghan: How many were unemployed?
1.25m
Under Callaghan: What was annual inflation at?
16%
Under Callaghan: What was the value of sterling?
Down to $1.57
Under Callaghan: What were interest rates at?
15%
Under Callaghan: How much did Healey ask the IMF for?
£3.9 billion
Under Callaghan: What did a £3.9bn loan from the IMF require Britain to do?
Make expenditure cuts of £2bn
Under Callaghan: What did Healey do to make expenditure cuts?
He restricted the amount of money by cutting government spending
When did Healey ask the IMF for a loan?
1976
What is monetarism?
Theory promoted by Milton Friedman
They believed pumping money into the economy would simply lead to inflation
They believed that governments should control the money supply
Restricting the amount of notes, credit available, and tolerating high interest rates.
When did Healey impose substantial spending cuts?
April and December 1976?
By 1979, what public expenditure had been majorly cut?
Housing and education
By 1977, what was the balance of payments? (Deficit or surplus)
Surplus
Where were by-elections lost by 1979?
Walsall, Workington, Birmingham, Stechford, and Ashfield
What saved the government between 1977 and 1978?
The Lib-Lab pact
1979 was one of the _____ years of the century for days lost to strike action
Worst
Wages were held back between 1976-7, but what hadn’t decelerated?
The cost of living
What percentage did Callaghan offer in his new income policy?
5%
Who opposed the 5% offered by Callaghan in his income policy?
Moss Evans
Who was Moss Evans?
Leader of the TGWU
What was the TGWU?
Transport and General Workers’ Union
How did the TUC respond to Callaghan’s income policy?
It was thrown out of the annual conference
Who began an unofficial strike in 1978?
Ford motor workers
Who followed the Ford motor workers after their strike?
Truck drivers and oil tanker drivers
When was the Winter of Discontent?
November 1978 - February 1979
Why did the Winter of Discontent begin?
Callaghan was offering a significantly lower pay rise than trade unions were demanding
Why was the Winter of Discontent excarbated?
It was the coldest winter in 16 years
Why did the media have a field day during the Winter of Discontent?
Liverpool gravediggers were refusing to bury the dead
Dustmen on strike made for great optics - piles of uncollected rubbish was photographed
Why did the Winter of Discontent harm Labour?
They were meant to be the party of the worker
People were tipped against them
