The Sixties Economy

Question 1

Trade Unions

Answer 1

• Govt. kept Unions happy, Wilson relied on Union cooperation
• Deteriorated between ‘66 and ‘67, Unions bosses lost control (Wildcat Strikes)
• Barbra Castle limiting Unofficial Strikes (White Paper - In Place of Strife), Received well by Public and Labour MPs, Some Union bosses protested (Jack Jones)
• After negotiation the Govt. backed down in June ‘69 (Row over ‘In Place of Strife’)

Question 2

Devaluation

Answer 2

• Caused by sterling crisis 1966 and then 1967 War in middle east affect oil prices and strikes national dock affected Balance of payments as impact on exports
• Lowering of Currency in comparison to others to fix the exchange system, made import expensive and make exports cheaper, would help Balance of Payments
• Would make Britain look weak and be weaker, Labour party may gain reputation of the Devaluation Party (Attlee in ‘49)

Question 3

Deflation

Answer 3

• DEA (Brown) wage restraint would prevent inflation
• Moving away from ‘stop-go’ policies; desperate to avoid devaluation (links to the balance of payments)
• Next 1966 Price and incomes policy. Did Not work; disagreements with Wilson and Callaghan; tension with Unions (Frank Cousins) 1966 Sea men strikes
• Inherited massive deficit £800m
• Stuck in stop go
• Wanted to avoid devaluation at all costs
• Brown convinced careful economic planning would work, didn’t work! Not popular in opposition to chancellor Callaghan.