Labour economic policy Flashcards
What issues did the labour government face?
Improve efficiency
Grant wage increases only when workers are more productive
maintain investment in nationalised industries
ensure Britain has a well trained workforce
What did they fix?
BOP by 1969
pound maintained value
Insuttrial development tin wales and the north
What did they not fix
deficit spending
high taxes
failed to modernaise
tuc relations were badly damaged after In A Place Of Strife
strikes
low growth
What was the National Plan
Economic plan to increase growth by 4% and exports by 5% and overall modernise Britain
What was the DEA
Department of economic affairs?
Why did the national plan fail?
The treasury refused to cooperate with the DEA
The spending plans of the DEA were at odds with the deflationary measures of the treasury
How did the gov intend to fix the BOP
Deflation/devaluation
What option did Wilson rule out?
Devaluation
Why did Wilson rule out devaluation?
It would reduce the savings of working class
devaluation brought down labour gov in 1931 and 45
He did not want to upset Americans
Why did they choose devaluation in the end?
semen strike in 1966 demanded pa rise above guide, threatening a run on the pund
unemployment was 1.6 million in 64 rose to 2.7 in 67
new BOP deficit
When did wilson devalue the pound?
November 1967
Did devaluation work?
No, it was too late and did not stop more deficit spending by Jenkins
How did they fix the BOP deficit in 1968?
More deflationary meausers increasing tax by 923 million
Did it work this time?
by 1969 the BOP was in surplus and sterling value was up
What was the labour relations with the TU?
Wilson thought many strikes were unjustified and that they needed more regulation
TU’s thought that the competitiveness of Britan was due to employers not employees
Why was it hard to tackle industrial relations?
Unions were Labour’s biggest ally and sponsor
What was “In a place of strife?”
an attempt to curb TU power
What were the proposals of IAPOS?
Employees would have a legal right to join a union
The government could order a ballot if the strike was unjustified/threatened the national interest
Gov could order a return to work for a 28-day cooling-off period
Added a new Industrial commission which could impose fines
What was the reaction to IAPOS?
TUC and left Labour MP’s were enraged with 50 MP’s rebelling in the House of Commons debate
