Economy Wilson And Callaghan

Question 1

How did Wilson’s govnelent solve 1974 miners strike ?

Answer 1

29% pay increase leading to increase of inflation to 30% by mid 1975
- worsened by worldwide recession hit British exports casing unemployment increase from 542k to 1.3 million by 1976

Question 2

How do Wilson’s government attempt to fix inflation ?

Answer 2

Wage restraint with Denis Healy COE in July 1975 introducing a roof on incomes policy
Tightened the next year
Wage increase fell from 26% in 1976 to 10% by 1977

Question 3

What did the Bank of England do ?

Answer 3

Used foreign loans to prevent nations bankruptcy

Question 4

How did labour avoid a political crisis ?

Answer 4

Healy, 1976 asked intertwining monitory fund for $39000 million but government had to cut spending by $2 billion accepted in December the same year
- managed to retain party unity stopping a press scandal

Question 5

Explain winter of discontent under Callaghan ?

Answer 5

1978-79
- ford workers won 15% pay increase and NUPE demanded a 40% wage increase
- Callaghan spent week at summit in West Indies a photograph of him in sun contrasted poorly
- made comments suggested there was not a crisis causing headlines to ridicule him