Wilson And Labour Governments Flashcards
Who was Harold Wilson
Leader of Labour Party, was a humble down to earth man who was a great moderniser and had a good media image.
Wilson’s ideology
Supported nuclear deterrence and attempted to reform trade unions. And was a bevanite.
Wilson’s leadership
He was conscious of balancing out his potential rivals and relied heavily on a personal team of trusted advisors. Wilson’s team was dominated by the personality of Marcia Williams, his personal political secretary.
Economic policies and problems including devaluation
Modernisation intentions
Modernisation of the British economy was one of the key priorities for the government and buying 1964. It was widely except that Britain was lagging behind other countries such as West Germany.
Economic policies and problems, including devaluation
Economy
Britain’s economy seemed to be trapped in a cycle of stop, go with bars of prosperity, always leading to inflation, runs in the pound and regular crisis over the balance of payments, breaking out of this cycle was the aim of Wilson government.
Economic policies and problems, including devaluation
How much debt was inherited by labour
£800 million, the two classic economic solutions to this kind of problem were deflation and devaluation, but Wilson and the chancellor of Exchequer James Callaghan did not want to do either.
Economic policies and problems, including devaluation
The problem with deflation
Deflation would support the value of the pound, but deflation was the old,Stop go approach that labour was trying to break away from. There were fears of the labour party stopping its commitment of extra spending on welfare.
Economic policies and problems, including devaluation
The problem with devaluation
Evaluation would make imports more expensive and help exporters by making British goods cheaper, but it would only make Britain look weak in the world because it would have to scale back as activity across the globe.
Economic policies and problems including devaluation
The department of economic affairs (DEA) led by George Brown
Brown set growth targets and devised national system of “economic planning councils”. He tried to establish voluntary agreement about wages and prices withtrade union leaders. the aim was to secure the restraint needing to prevent inflation rising.
Economic policies and problems including devaluation
Outcome of Brownes (DEA)
Brown’s economic proposals came to nothing, and they did not have united government support some blamed Brown, as he could be impulsive and inconsistent.
Economic policies and problems, including devaluation
1966 foreign affairs minister
In 1966, Wilson moved brown to the ministry of foreign affairs, and the Department of economic affairs was abandoned in 1967.
Economic policies and problems including devaluation
Prices and incomes policy and sterling crisis
The government brought in a prices and incomes policy to keep down inflation, but there was another sterling crisis in 1966, caused by a bitter strike by the national union of seaman.
Economic policies and problems including devaluation
Outcome of the prices and incomes policy
The government, defeated strikes, but many on the left was shocked by Wilson’s critical attitudes to the strikes, and the trade unions, Frank cousins resigned from the cabinet over the incomes policy.
Economic policies and problems including devaluation
1967 outbreaks of war and strikes
In 1967, an outbreak of war in the Middle East affected oil supplies and the major national duck strike in August affect the balance of payments. The government decided that devaluation could not be avoided.
Economic policies and problems including devaluation
Devaluation crisis
The devaluation crisis damaged labours credibility, Britain’s second application to join. The EEC was rejected hard on the heels of the deep devaluation crisis and made the governments economic policies look futile.
Economic policies and problems including devaluation
Callaghans replacement as chancellor
Roy Jenkins replaced Callaghan, who had been in strong favour of devaluation. Jenkins use deflationary methods and he raised taxes and tightened up government spending, giving priority to improve in the balance of payments.
Economic policies and problems including devaluation
Outcome of Jenkins deflationary methods
The measures were unpopular but by 1969, Jenkins had achieved a balance of payment surplus. however, 1969-1970, inflation was still running at 12%. improvement in the economic situation was a key factor in making labour confident of victory in the 1970 election.
Industrial relations and the trade unions
Employment and trade union content
Post war consensus
Both conservative and labour had seen a key element in the PWC to maintain full employment and to keep the unions happy. in opinions poll in early 1960s, nearly 60% of people said they had a favourable view of unionists.
Industrial relations, and the trade unions
Wilson and Frank cousins 1964
In 1964, Wilson made the trade unionist, Frank cousins minister of technology, and Wilson was relying on union corporation with his prices and income policies.
Industrial relations, and the trade unions
1966 and 1967 deterioration
Industrial relations with the trade unions began to deteriorate. strikes by the semen and dockers caused economic problems for the government. the strikes demonstrated that the old style union bosses were losing control.
Industrial relations and trade unions
Strikes
A lot of strike started with wildcat strikes by local local activist who would not take orders from the top.