The 1960's - Domestic Policies and the economy

Question 1

How did Wilson portray himself and how did this contrast with opposition in the 64’ and 66’ election ?

Answer 1

1964:Wilson - Moderniser –>White heat of technological change,
Holme -> was portrayed as out of touch with society.

1966:Wilson relaxed and telegenic persona. Politically Skilled.
Heath - Arkward and dull

Question 2

What was Wilsons political Stance/Background?

Answer 2

Left Winger: Was a Bevanite
Moderate: Supported use of Nukes and TU reform
Opportunist? attitudes only to gains support.
Moderniser: tech reveloution. Classles Image - State School

Question 3

What was the kitchen Cabinet ?

Answer 3

Wilson Anxious leader- feared opposition within party -e.g Callaghan
–> Relied on trusted advisors (not in gov)

Question 4

What were some of the problems with Wilson’s Government?

Answer 4

• Wilson had limited expertise
• development of tech was expensive
• Inherited stop go problems with the economy from the 50’s

Question 5

What were the economic problems faced by Wilson and the government?

Answer 5

• Lagged behind competitors E.g EEC
• Economy still dominated by STOP -GO –> issues of balance of payments + payments + high inflation.
• £800 Million trade deficit in 65’

Question 6

What were Wilson’s potential solutions to Economic problems?

Answer 6

• Deflation Policies

- Devaluing the Pound –> Make exports cheaper thus more competitive.Protecting domestic business.

Question 7

How Did Wilson implement long term economic planning?Was it Successful?

Answer 7

• Set up DEA –> headed by Brown, attempt to break out of Stop-Go.
• DEA set up EPC to negotiate wages and prices

–> DEA resented by treasury, Callaghan sceptical of Brown , DEA abandoned in 67.

Question 8

What were the prices and incomes policies?Effective?Opposition?

Answer 8

-Gov called for wage restraints & limiting prices –> Tackle inflation
Board to oversee these policies.

-call for wage restraints –> Tension between gov and unions.

Left saw it as too hostile on Tu’s

Question 9

What happened in the devaluation crisis of ‘67? What impact did this have?

Answer 9

-Oil supplies affected by war in Middle east.+ Dockers strike affected exports –> balance of payments .

-Gov in response devalued pound + increased interest rates and higher purchase restrictions to combat inflation.
-> Unpopular with public and damaged party’s credibility with economy.
Labour now associated with poor economic performance.

Question 10

What was Britian’s economic performance like after ‘67

Answer 10

• Jenkins achieved a balance of payments surplus in ‘69
• Inflation still at 12%
• -> handling over stop- Go was a failure
• -> Long term planning failed