3.15 Callaghan, The Economy, and the Unions

Question 1

Was the nosedive of the British economy from the end of 1973 a uniquely British thing?

Answer 1

No - it was a worldwide problem

Question 2

In the economy there were signs of _____ in 1976

Answer 2

Recovery

Question 3

From 1960 - 1973, what had economic growth averaged?

Answer 3

3% a year

Question 4

From 1974-9, what had economic growth averaged?

Answer 4

1.5% a year

Question 5

In 1974, how much oil had the UK imported?

Answer 5

100m tonnes

Question 6

In 1974, how much oil had the UK exported?

Answer 6

1m tonnes

Question 7

When did the UK begin producing oil from the North Sea?

Answer 7

1975

Question 8

What happened to the economy thanks to North Sea Oil?

Answer 8

The oil account brought dividends with a surplus of balance payments between 1977-8

Question 9

Under Callaghan: What was the balance of payments deficit approaching?

Answer 9

£1bn

Question 10

Under Callaghan: How many were unemployed?

Answer 10

1.25m

Question 11

Under Callaghan: What was annual inflation at?

Answer 11

16%

Question 12

Under Callaghan: What was the value of sterling?

Answer 12

Down to $1.57

Question 13

Under Callaghan: What were interest rates at?

Answer 13

15%

Question 14

Under Callaghan: How much did Healey ask the IMF for?

Answer 14

£3.9 billion

Question 15

Under Callaghan: What did a £3.9bn loan from the IMF require Britain to do?

Answer 15

Make expenditure cuts of £2bn

Question 16

Under Callaghan: What did Healey do to make expenditure cuts?

Answer 16

He restricted the amount of money by cutting government spending

Question 17

When did Healey ask the IMF for a loan?

Answer 17

1976

Question 18

What is monetarism?

Answer 18

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.

Question 19

When did Healey impose substantial spending cuts?

Answer 19

April and December 1976?

Question 20

By 1979, what public expenditure had been majorly cut?

Answer 20

Housing and education

Question 21

By 1977, what was the balance of payments? (Deficit or surplus)

Answer 21

Surplus

Question 22

Where were by-elections lost by 1979?

Answer 22

Walsall, Workington, Birmingham, Stechford, and Ashfield

Question 23

What saved the government between 1977 and 1978?

Answer 23

The Lib-Lab pact

Question 24

1979 was one of the _____ years of the century for days lost to strike action

Answer 24

Worst

Question 25

Wages were held back between 1976-7, but what hadn’t decelerated?

Answer 25

The cost of living

Question 26

What percentage did Callaghan offer in his new income policy?

Answer 26

5%

Question 27

Who opposed the 5% offered by Callaghan in his income policy?

Answer 27

Moss Evans

Question 28

Who was Moss Evans?

Answer 28

Leader of the TGWU

Question 29

What was the TGWU?

Answer 29

Transport and General Workers’ Union

Question 30

How did the TUC respond to Callaghan’s income policy?

Answer 30

It was thrown out of the annual conference

Question 31

Who began an unofficial strike in 1978?

Answer 31

Ford motor workers

Question 32

Who followed the Ford motor workers after their strike?

Answer 32

Truck drivers and oil tanker drivers

Question 33

When was the Winter of Discontent?

Answer 33

November 1978 - February 1979

Question 34

Why did the Winter of Discontent begin?

Answer 34

Callaghan was offering a significantly lower pay rise than trade unions were demanding

Question 35

Why was the Winter of Discontent excarbated?

Answer 35

It was the coldest winter in 16 years

Question 36

Why did the media have a field day during the Winter of Discontent?

Answer 36

Liverpool gravediggers were refusing to bury the dead

Dustmen on strike made for great optics - piles of uncollected rubbish was photographed

Question 37

Why did the Winter of Discontent harm Labour?

Answer 37

They were meant to be the party of the worker

People were tipped against them