britain Flashcards
Keynesian Policies
- A form of demand-side economics
- Encourages government action to increase/decrease demand and output
Butskelism 1954
- Joining together of Butler (Conservative) and Gaitskell (Labour)
- Common ground on economy/welfare
STOP/GO Policy
- STOP phase: Reaction to high inflation and balance of trade deficit restraints such as
~Interest rates increasing
~Introducing wage freeze
~ Increasing taxes - GO phase: A follow-up because deflating the economy has dangers of putting firms and workers in strain, lifted restrictions
~Ending wage freezes
~Lowering interest rates
~ Introducing tax cuts
1955 election
Why Conservatives won:
- Rising prosperity
- Ending of rationing
- Eden proved popular, calm, optimistic and passionate and his field was in foreign policy
- Good willed and respectful
Suez crisis
- Canal has been owned by company controlled by France/Britain.
- They (with Israel) responded to its nationalisation by attacking Egypt, in order to get rid of the Arab leader, Nassar and maintain control of the region
- It was a short route for Britain to its Empire and (80%) imports were passed through the canal). In 1956, Israel attacked Egypt whilst France/Britain bombed it.
Concequences of Suez -
- Political: Eden stepped down as PM - forced to by his own party, but the public were told that it was due to his health, he was humiliated
- Economy: Fall in Britains currency reserves / US threatened to stop giving loans to Britain
- Society: 30,000 people marched on Trafalgar in protest, not everyone was against the Suez crisis but not many were in support of it
- International: Failure of British foreign policy. US furious they weren’t consulted. Withdraws from investors and in doing this, they acted independently from NATO
Society under Macmillan
- ‘Never had it so good’
- Permissive society - reduction of censorship, the general change of attitude
- Mary Whitehouse believed it exposed children to more sex and violence.
- ‘The Age of Affluence’: Time of economic growth: increase in the average wages/high housing rates/high standards of living
- Women - higher status, more free time due to household appliances. 1/10 were now professional workers
- Young people - ‘Youth subculture’ emergence of mods and rockers and they had more free time
- Race/Immigration - Needed to fill post-war Labour shortage, this caused friction (lower wage than white people). Notting hill race riots caused by the housing shortages crisis.
Wind of change speech 1960
- Related mainly to the separation of Britain from its South African colonies (decolonisation)
- Also referred to discontent with the system of apartheid.
- Positive results for UK government.
- He got named ‘SuperMac’
The Resale Prices Bill of 1964
To end resale price maintenance, ‘price-fixing’.
Partial Nuclear Test Ban Treaty
Treaty Banning Nuclear Weapons Tests in the Atmosphere, in Outer Space and Under Water prohibits nuclear weapons tests “or any other nuclear explosion”
1964 election
- Home lost the 1964 election to Labour/Wilson by a narrow margin.
- Conservatives’ loss was due to the loss of votes to the Liberal Party, which received 11.2% of vote
National Plan
- George Brown created Economic policies.
- Wilson’s government put faith in economic planning to solve Britain’s problems.
- The government’s strategy involved setting up a DEA which would draw up a National Plan
- It intended to promote growth/investment
- Failed 1966 and TU’s weren’t on board
1964 narrow margins
- Narrow election victory (Conservatives had a tired and ageing image.
- Wilson only won because he out debated Douglas-Home.
- Labour had a young and enterprising image)
Relations with the US
- Wilson continued to prioritise special relations with US.
- He continued to support the UK-US Nuclear project.
- Wilson expressed support for the US’s Cold War involvement in the Vietnam War.
- He refused to send British troops to back up the US front in Vietnam, which kept Britain out of another war through harming the special relationship.
In Place of Strife
- Barbara Castle laid proposals aimed at limiting strikes.
- Problem with strikes was that workers were taking unofficial strike action, so strikes took place without being ratified by relevant trade unions.
The key proposals of ‘In Place of Strife’:
~ Introduce a 28-day cooling-off period before a strike can be carried out.
~ Introduce Strike ballots: a union must hold a ballot before organising industrial action.
~ If unions disagreed, they would face prosecution in an industrial relations court and fined.
Withdraw from East Suez
- Aim to cut Britain’s military defence expenditure
- Upkeeping Britain’s overseas military bases in colonies made a huge dent in the British economy.
They brought the defence budget under £2 billion by withdrawing troops from the following countries by 1971:
- Aden (now part of Yemen)
- Malaysia
- Singapore.
Failure to control the unions
- Wilson then turned to prices/income policies.
- He planned to work with unions/employers/industrialists to limit rises in prices/wages to curb inflation.
- Wilson’s prices/income policies alienated the left Labour/TU’s, Wilson was actively working against workers’ best interests.
Examples:
- Seamen’s strike 1966 aimed for higher wages/reduce the working week from 56 to 40 hours. Lasted seven weeks and caused enormous economic disruption. - Docks strikes 1967 took place in Liverpool/London, targeting England’s major ports. This caused further disruption, affecting Britain’s exports/balance of payments deficit
Devaluation of the pound
- Strikes put pressure on the pound.
- Wilson applied for another loan from the IMF, but not enough to offset trade/balance of payments deficits (which Conservatives left - £800 million deficit)
- Before devaluation - £1 was worth $2.80. After devaluation, it 14% less at $2.40)
Powell Factor - Rivers of blood
- His speech criticised mass immigration, especially Commonwealth immigration to the UK and the proposed Race Relations Bill.
- He said black people would take power in Britain within 20 years and painted a picture of riots/race war
Barber Boom
- Chancellor Anthony Barber attempted policies that led to short-lived economic expansion.
- Involved policies such as lowering income tax by £1 billion/giving tax concessions to industries in attempt to help workers retain jobs.
- But, this led to rise in wage inflation/confrontation with labour unions
Seldom Man conference
- Heath was branded ‘Selsdon man’.
- This came from Conservative conference in 1970 at Selsdon Park, in which the core ideology of the ‘New Right’ was formed.
- Wilson criticised the ‘New Right’ and ‘Selsdon Man’, saying that the ideology was ruthless/uncaring
Industrial relations act 1971
~ Restricted workers’ rights to strike by ‘unfair industrial practice’.
~ Introduced a National Industrial Relations Court, which decided if a strike was legal/illegal.
~ Unions had to register with government to retain rights legally.
- This act failed
- TU Commission refused to cooperate - no unions registered
- The act was impossible to enforce.
- Heath attempted (failed) to bargain with unions
Confrontation with the miners 1972
- National Union of Miners (NUM) called for strike in 1972 to protest closure of mines as well as to demand wage increases.
- Caused serious disruption to fuel and electricity supplies, and industrial productivity.
- Heath’s government imposed strict fuel restrictions, they did not win the strike.
- This led to the three day week