Wilson And The Labour Government Flashcards
Why could Heath not compare with Wilson
Wilson was a better politician tactician and was able to portray a more attractive image to the voters. In contrast Heath came across as stiff and lacking in personality.
What was Wilson like
He was modern and the left of the Labour Party.
First prime minster educated in a state school, smokes a pipe with a Yorkshire accent. Relaxed and skilful performer on TV
What was his weakness in his personality
Anxious and insecure of his leadership. Conscious of balancing out his potential rivals so he would remain unchallenged. Relied heavily on a personal team of trusted advisers.
What economic problems were faced by Britain
- Britain was lagging behind other countries such as west Germany and Japan
- post war boom had not been reflected in productivity or growth rates.
- Britain’s economy was trapped in a cycle of stop go policies with bursts of prosperity always leading to inflation, run of the pound and regular crises over the balance of payments.
- deficit of £800 million.
Pros and cons of devaluation
Pros
- devaluation would make imports more expensive and help exporters by making British good cheaper in other countries which would help the balance of payments
Cons
- make Britain look weaker in the world.
- Wilson feared that the Labour Party would gain a reputation of the party of devaluation
How was the Labour Party trying to improve economic problems
A new department- the department of economic affairs (DEA)
Set up by George brown- set growth targets and devised a national system of economic planning and councils. Tried to establish voluntary agreements about wages and prices with industrialists, trade union and civil servants. This was to prevent inflation rising, the government would then need to stop with controls, the stop go cycle could be avoided
Why did the DEA not work
Why may have it been because of weak politics
They did not have united government support. Some blames brown as he was impulsive and inconsistent.
Politics
- Harold Wilson was trying to keep key personalities happy rather than picking the best team for the job.
What did the labour government bring in to replace the DEA and why
Prices and income policy’s
- to keep down inflation
Why was their a weak relationship between the labour government and the trade unionist
Sterling crisis in 1966 caused in part by a long bitter strike by the national union of seaman. The government defeated the strike but many, especially on the left were shocked by Wilson’s critical attitude to the strikers. Trade unionist frank cousin left the cabinet over the income policies.
What effected the balance of payments in 1967
Major national dock strike
How much did the pound drop by in 1967
14 per cent to 2.40 U.S. Dollars.
Why did Britain send their second application to the EEC and what happened
Purely on all economic grounds.
However the application was rejected hard on jells on the devaluation crisis made the governments economic policies look futile.
What did Roy Jenkins do to improve the economy
Raised taxes and tightened up government spendings in all areas of the economy. Giving top priority to improve the balance of payments. This made the government unpopular but a balanced of payments had been achieved.
When did Harold Wilson become prime minister
1964
Why did industrial relationships with the trade unions begin to deteriorate between 1966-1967
Strikes by the seaman and the dockers caused economic problems for the government. The strikes demonstrated that old style union bosses were losing some of their control.