The Sixties, 1964-1970 Flashcards
Was Harold Wilson on the left or the right of the Labour party?
Left.
True or false - Wilson had been a Bevanite and resigned in 1950 over prescription charges.
True.
Did Wilson serve under Gaitskell’s cabinet?
Yes.
In what year did Wilson challenge Gaitskell for leadership from the left in and did he win or lose?
1961 and lost but became the future obvious candidate from the left.
Wilson didn’t appear to be of the left. What policies did he support that are examples of this?
Supported nuclear deterrent.
Attempted to reform Trade unions.
How did Wilson refer to the 13 years of conservative governement?
Called them the ‘wasted years’.
Wilson successfully linked the party to modernisation and was seen as classless. What examples of this were there?
Relaxed on TV.
Removed from Edwardian image of Eden, Macmillan and Home.
Smoked a pipe.
State school educated.
Yorkshire accent.
Wilson conscience about balancing his rivals in the party to remained unchallenged. Who did he rely on?
Trusted advisors from outside the government and civil service.
Dominated by Marcia Williams who was his personal political secretary.
Kitchen cabinet - economic advisors and inner circle MPs. These kitchen cabinet meetings reinforced his suspicions of inner party rivalries and prevented ministers from access to him.
The party inherited a deficit of how much?
£800 Million.
Classic solutions of a deficit were deflation and devaluation, what did James Callaghan want to do?
Neither.
What is Devaluation?
Decrease value of pound.
Increases import cost but helps making British exports cheaper in other countries.
Makes Britain look and be weaker as would have to scale back activities around the globe.
Labour did not want to do this as feared reputation of devaluation like Atlee in 1949.
What is Deflation?
Supports the value of the pound and prevents inflation.
However Labour not favourable as was part of the old ‘stop-go’ economics that Labour wanted to break away from.
Also would prevent Labour from sticking to their manifesto of extra spending on the welfare state and technology.
True or false - Labour wanted to continue Stop-go cycle.
False. Reorganising the economy to break out of cycle was on of Wilson’s key aims in 1964.
Affluence of the post war boom was not seen in the growth rates of Britain. What countries was Britain lagging behind economically?
West Germany and Japan.
What was Wilson’s solution to the economic issues left by the conservatives?
The DEA (Department of economic affairs).
Who was the DEA led by?
George Brown who had a working class trade union background.
What was the plan by the DEA?
National systems of economic planning councils.
Tried to establish voluntary agreements about wages and prices with industrialists, trade unionists and civil servants.
Aimed to secure the restraint needed to prevent inflation which the government would need to stop with controls.
Done to prevent stop-go.
Did the DEA fail?
Yes.
Why did the DEA come to nothing?
Didn’t have united government support and was always at competition with chancellor Callaghan.
Some blamed Wilson for trying to make people happy rather than pick the best man for the job.
Some blamed brown for being impulsive and inconsistent. He moved to the ministry of foreign affairs after.
Some blamed the old fashioned anti Labour civil servants at the bank of England for undermining Brown’s efforts.
Who was Callaghan replaced by in 1967 who was strongly in favour of Devaluation?
Roy Jenkins.
What policies did Jenkins implement?
Increased taxes and tightened up government spending prioritising balance of payments.
Did Roy Jenkins policies make Labour popular or unpopular?
Unpopular.
Was Jenkins economic policy successful?
Achieved balance of payments surplus in 1969
Key reason as to why Labour were confident going into 1970 election.
Although inflation was still 12% 1969-1970.
What did Labour implementing devaluation with Roy Jenks do to their credibility?
Damaged it as they had tried to avoid it previously.