Economic Developments: Economic Management from 1957-64 under Thorneycroft and Heathcoat-Amory Flashcards
What was the state of Communism in Unions?
It was present but not militant
What did workers try and gain in their unions?
Maximum return for minimal effort
Give an example of workers getting max return for minimal effort in these years
In 1961 average wages went up 8% when productivity only went up 3%
How did the Trade Unions act with management in terms of helping productivity? Why?
They barely worked with them to improve efficiency as they were from a different class
What impact did the Trade Unions have on the economy and trade?
There was stagflation and trade could never fluctuate
What happened to the pound due to the Suez Crisis?
It was put under pressure of losing value by America
How much did the Suez Crisis cost Britain?
£564 million
How did Thorneycroft try and solve Britain’s financial problems?
He wanted to limit wage increases
Who was opposed to Thorneycrofts proposals? Why?
Iain MacLeod opposed them as it would lead to a rise in unemployment
How did Macmillan react to Thorneycrofts ideas? What did Thorneycroft do?
He wanted to keep an expansionist economic policy. So Thorneycroft resigned
What was the situation of the Post-Suez finances for Britain by 1959?
They were able to make a pre-election budget giving tax cuts of £370 million
What happened to imports and exports after the pre-election budget was given out?
Exports rose by 4% and imports rose by 10%
What did Heathcote-Amory try to do in his 1959 budget? What did Macmillan think?
Deflate the currency. Macmillan did not support this
What was the result of Macmillans thoughts on Heathcoat-Amory’s budget?
He resigned
How can Macmillans economic management be seen by this point?
Wants expansionism but stays in the Stop-Go loop, not accepting deflationary budgets
