Chlapter 5 Flashcards
What was the seat distribution in the 1964 election
Labour 317
Conservative 304
What where Harold Wilson’s pollitical views
Initially Harold Wilson had been more left he challenged gaitskell as a member of his cabinet in 1961 and lost he had now become the left candidate
In what ways was Wilson not left wing
He supported nuclear deterents and wished to reform the trade unions,
However some argue he was just an oppurtunist
How did Wilson appear to British society
He reflected the modernisation the Labour Party represented, he was far from the traditional Etonian prime ministers, he was classless first state educated prime minister
What was Wilson’s character like away from the spotlight
He was anxious and insecure about his leadership, he plotted against competition to make sure his role was secure.
What issues did the labour government of 1964 inherit
They inherited a large deficit of 800 million
Britain was trapped in a cycle of stop-go economics with bursts of prosperity leading to inflation, runs on the pound and regular crisis in balance of payments.
The affluence of the post war boom was not reflected in Britains production rates, they were lagging behind
Who was Wilson’s chancellor of the exchequer
James Callaghan
What is deflation
Would support the value of the pound and prevent inflation. But deflation was the old stop go approach that the Labour Party was determined to break away from. There were also fears that it would stop labour from achieving its manifesto
What Is devaluation
Lowers the values of a currency in comparison to others in a fixed exchange system
Pros and cons of devaluation
Would make imports more expensive and help exporters by making British goods cheaper in other countries; this would in turn help the balance of payments. But devaluation would not only make Britain look weaker in the world, it would make Britain actually weaker as it would have to scale back its activities across the globe. Wilson also feared that the Labour Party would become known as the devaluation Party after Attlee in 1949
How did labour aim to combat economic issues
Wilson thought success could be achieved by careful management and planning.
He set up the department of economic affairs led by George brown that set growth tangents and devised a national system of economic planning councils
Why was the dea abandoned in 1967
The dea were virtually in competition with the chancellor and the orthodox economists at the treasury
The treasury and Bank of England often undermined the dea by refusing to pass over papers
Brown was moved to the ministry of foreign affairs in 1966
Harold Wilson tried to pick personalities rather than picking the right people for the job
What was prices and incomes policy
It was government intervention to set limits on price rises and to call for wage restraints in negotiations between unions and employers
Was prices and incomes policy successful
No it wasn’t very successful as in 1966 there was another sterling crisis caused by a long and bitter strike by the national union of seamen
Frank cousins resigned from the cabinet over the policy the relationships between the government and trade unions was deteriorating.
What state was Britains economy in 1967
An outbreak of war in the Middle East known as the 6 day war affected oil supplies
A major national dock strike in 1967 affected balance of payments.
The goverment decided that the devaluation of the pound could not be avoided the pound dropped 14% to 2.40 dollars
Labour also introduced defences cuts and hire purchase restrictions and higher interest rates.
How was the labour goverment affected by the economy in 1967
They tried so hard to avoid devaluation that the devaluation crisis damaged its credibility. A few weeks later Britains second application to join the eec was rejected, it made the goverments economic policies look futile
How did economic situations improve in the late 60s
Jenkins was appointed chancellor of the exchequer in 1967 he used deflationary methods such as raising taxes and tightening goverment spending these measures made the goverment unpopular but by 1969 a balance of payments surplus had been achieved