end of consensus 1970-79 Flashcards
What was stagflation?
Combination of inflation and economic stagnation/unemployment
What was Heath’s u-turn?
1970 election manifesto promised to end subsidy of ‘lame duck’ industry - u-turned on this by nationalising rolls royce in 1971
What effect did the Yom Kippur War have on Heath’s government?
OPEC declared an oil embargo - oil prices increased by 4x
How many days were lost to strikes in 1972?
24 million, the most since the general strike of 1926
What measures did Heath implement to deal with oil and coal shortages?
3 day week, TV shut off at 10:30
What was internment and when was it implemented?
Locking up suspects without trial - implemented by Heath’s govt in 1971
What % of those interned between 1971-75 were Catholic?
95%
What was Bloody Sunday?
British soliders killed 13 NI citizens protesting internment in Derry
What was direct rule?
Suspension of NI Stormont parliament and direct rule from Westminster
What was the Sunningdale agreement and what did it propose?
Attempt at compromise by Heath/Whitelaw - proposed power-sharing executive, proportional representation and some ROI input
Why did Sunningdale fail?
Opposition from both sides - unionists opposed any ROI input and nationalists saw it as a sell out
How was the economy when Labour returned to power in 1974?
In ruins - inflation at 15%, deficit of £3 billion (£26 billion today)
What was Wilson’s ‘social contract’?
Repealing Heath’s measures against the unions in exchange for voluntary pay restraint
What were Callaghan’s ‘twin evils’?
Unemployment and inflation
What did Callaghan and Healey do in 1976 to save the economy?
Applied for a £3 billion loan from the IMF (International Monetary Fund)
What was the Lib-Lab pact?
12 Liberal MPs would vote with Labour - restored majority
How was the economy in 1978?
Callaghan managed to restore the economy - GDP up 3.4% in 1978 and had £250 million surplus