Economy Arguement Heath Flashcards
What did Heath do ?
Consensus with the previous Labour government that economy needed strengthening by curbing inflation which would require management of unions
How did Heaths government face an initial external challenge ?
Nixon ended system of fixed exchange which had been around since WW2 and made British exports more expensive
- worsened by heaths decision to let pound float freely when it floated down exports became more expensive
How did Heaths government aim to counteract the challenges in 1972?
Was this successful
Instalment of a budget aimed to stimulate demand for goods
- it pushed prices up
Not involve government with ‘lame ducks’ in industry
No
- 1972 miners strike resulted in a pay increase above gov policy of 8%
-1972 granted 35 million to Upper Clyde shipper builders to safeguard 3000 jobs
How did government make some headway ?
Statutory policy to regulate prices and pay increase
- destroyed by 1973 OPEC oil crisis leading to an increased demand for coal with miners striking to capitalize on this leading to a three day week
- Heaths government failed to deal with the economy and undermined its own efforts
