4252314
Description
Mind Map by Chloe Fairbrother, updated more than 1 year ago
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Created by Chloe Fairbrother
over 8 years ago
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|
WILSON'S GOVERNMENT: ECONOMIC
POLICIES & PROBLEMS (1964 - 1970)
- THE STATE OF THE BRITISH
ECONOMY (1964)
- DEBT of £800
MILLION
- DEFLATION?
- + Would SUPPORT the
VALUE OF THE POUND.
- - Would have been a biting submission to
the tiringly archaic approach of
'stop-go' economics that WILSON WAS
DETERMINED TO DISSASOCIATE
BRITAIN FROM!
- - Posed serious issues for the LABOUR PARTY
MANIFESTO COMMITMENTS of INCREASED
EXPENDITURE within the WELFARE an
TECHNOLOGY departments!
- + Would SUPPORT the
VALUE OF THE POUND.
- DEVALUATION?
- Wilson was concerned about the
Labour Party acquiring a distasteful
REPUTATION as 'the PARTY OF
DEVALUATION.'
- After CLEMENT ATLEE
was forced to devalue
the pound in 1949.
- After CLEMENT ATLEE
was forced to devalue
the pound in 1949.
- + Would cushion the recent
weakening effects on Britain's
BALANCE OF PAYMENTS.
- - Would WEAKEN Britain's
INTERNATIONAL REPUTATION
on the notion of fragility.
- - Would actually make Britain's INTERNATIONAL
PRESENCE significantly WEAKER when
recognising that She would have to REIGN IN her
role in many GLOBAL ACTIVITIES!
- Wilson was concerned about the
Labour Party acquiring a distasteful
REPUTATION as 'the PARTY OF
DEVALUATION.'
- DEFLATION?
- Britain was LAGGING BEHIND
the ECONOMIES of other leading
countries...
- West
Germany
- Japan
- West
Germany
- 'STOP-GO'
POLICIES
- Britain's economy was
STILL waged in a cycle of
turbulent 'stop-go' policies!
- A vicious circle of quick bursts of
prosperity ultimately leading to
demeaning periods of deflation!
- A vicious circle of quick bursts of
prosperity ultimately leading to
demeaning periods of deflation!
- REORGANISING the ECONOMY in
order to BREAK FREE of this cycle
became the PRINCIPLE AIM of
HAROLD WILSON'S
GOVERNMENT (1964)!
- Britain's economy was
STILL waged in a cycle of
turbulent 'stop-go' policies!
- DEBT of £800
MILLION
- WHAT DID WILSON DO TO AVOID
DEVALUATION?
- Established a new
'DEPARTMENT OF
ECONOMIC AFFAIRS'
- George
Brown
- Set GROWTH
TARGETS.
- Devised a national system of
'ECONOMIC PLANNING
COUNCILS.'
- Attempted to establish
AGREEMENTS about...
- Wages.
- Prices.
- ... With the
VIEWS of...
- Industrialists.
- Civil servants.
- Trade Union
leaders.
- Industrialists.
- Wages.
- FAILURE
- George Brown's
efforts were
UNDERMINED...
- James
Callaghan
- ... bitter COMPETITION ensued
between Brown, with his D.E.A. and
Callaghan, alongside the
TRADITIONALIST economists of the
TREASURY!
- 'ANTI-LABOUR' Civil
Servants...
- REFUSED to ADMIT
IMPORTANT DOCUMENTS!
- Drew up lots of PLANS
but FAILED to IMPLEMENT
these ideas!
- Drew up lots of PLANS
but FAILED to IMPLEMENT
these ideas!
- Even went as
far to as 'BUG'
Brown's PHONE
- REFUSED to ADMIT
IMPORTANT DOCUMENTS!
- GEORGE
BROWN...
- 'Impulsive and
inconsistent'
attitude.
- 'Impulsive and
inconsistent'
attitude.
- 'ANTI-LABOUR' Civil
Servants...
- James
Callaghan
- Wilson felt compelled
to ABANDON the
disastrous venture!
- 1967
- Only THREE YEARS after
implementing the department
for the first time!
- Only THREE YEARS after
implementing the department
for the first time!
- Wilson deferred George
BROWN out of his leadership
role and into the MINISTRY OF
FOREIGN AFFAIRS!
- VERY embarrassing!
- 1967
- George Brown's
efforts were
UNDERMINED...
- George
Brown
- PRICES AND INCOMES
POLICY
- 'PRICES AND
INCOMES BOARD.'
- An ALTERNATE venture to the
unsuccessful 'Department of
Economic Affairs.'
- FAILURE
- Another STERLING
CRISIS...
- 1966
- A STRIKE by the
NATIONAL UNION
OF SEAMEN.
- LONG duration
- BITTER attitudes
presented.
- Ports and docks around the
country were becoming
increasingly congested as ships
are brought to a standstill by
protesting members of the
National Union of Seamen.
- The NUS is demanding
their 56-hour week is
reduced to 40 hours.
- Wilson acknowledged
conditions and
regulations governing
the seamen needed to
be modernised...
- ... but said the pay demands could
not be satisfied because the
resulting amount of overtime pay
would go counter to the prices and
incomes policy that aims to reduce
inflation by limiting wage rises to
3.5%.
- ... but said the pay demands could
not be satisfied because the
resulting amount of overtime pay
would go counter to the prices and
incomes policy that aims to reduce
inflation by limiting wage rises to
3.5%.
- Wilson acknowledged
conditions and
regulations governing
the seamen needed to
be modernised...
- The NUS is demanding
their 56-hour week is
reduced to 40 hours.
- "The government must
protect the vital interests of
the nation. This is not action
against the National Union of
Seamen."
- Harold Wilson,
Prime Minister
- Wilson's hardline tactics split the Labour party into
Left and Centrists and did little to improve the
country's economic problems!
- Frank
Cousins
- RESIGNED from Wilson's
CABINET over the PRICES AND
INCOMES POLICY.
- 5th December,
1966
- Provoked a quickening
disintegration of
harmony between the
GOVERNMENT and the
TRADE UNIONS!
- 5th December,
1966
- RESIGNED from Wilson's
CABINET over the PRICES AND
INCOMES POLICY.
- Frank
Cousins
- Wilson's hardline tactics split the Labour party into
Left and Centrists and did little to improve the
country's economic problems!
- Harold Wilson,
Prime Minister
- LONG duration
- 1966
- Another STERLING
CRISIS...
- An ALTERNATE venture to the
unsuccessful 'Department of
Economic Affairs.'
- Government intervention to SET LIMITS
on PRICE RISES and to call for WAGE
RESTRAINT in NEGOTIATIONS between
TRADE UNIONS and EMPLOYERS.
- 'PRICES AND
INCOMES BOARD.'
- Established a new
'DEPARTMENT OF
ECONOMIC AFFAIRS'
- DEVALUATION
- A THIRD Sterling
crisis...
- 1967
- 1. Another outbreak of WAR
within the MIDDLE EAST...
- ... badly affected
OIL SUPPLIES!
- ... badly affected
OIL SUPPLIES!
- 2. A major NATIONAL
DOCKING STRIKE...
- ... led to a poor BALANCE
OF PAYMENTS!
- August,
1967
- ... led to a poor BALANCE
OF PAYMENTS!
- 1967
- The British £
DROPPED by 14%
- $2.40
- $2.40
- Labour was forced to
introduce...
- HIRE PURCHASE
RESTRICTIONS!
- HIGHER
INTEREST RATES!
- ... deflationary policies that GREATLY
RESEMBLED hose of the dreaded 'stop-go'
economics of the PREVIOUS CONSERVATIVE
GOVERNMENTS!
- HIRE PURCHASE
RESTRICTIONS!
- November,
1967
- Wilson addressed the
NATION to explain his
decision to devalue the £
- Wilson addressed the
NATION to explain his
decision to devalue the £
- James
Callaghan
- Had consistently
OPPOSED
DEVALUATION...
- ... and subsequently
RESIGNED over the
issue!
- 1967
- Calling it, "a POINT
OF HONOUR."
- 1967
- ... and subsequently
RESIGNED over the
issue!
- Had consistently
OPPOSED
DEVALUATION...
- "Having denied 20 times in
37 months that they would
ever devalue the pound,
they have devaluated
against all their own
arguments."
- Edward
Heath
- CONSERVATIVE
leader.
- Appeared on TV to
REPLY to Wilson's
BROADCAST in
November.
- CONSERVATIVE
leader.
- Edward
Heath
- A THIRD Sterling
crisis...
- THE SOLUTION AFTER DEVALUATION
- Roy
Jenkins
- James Callaghan's REPLACEMENT
for the position of CHANCELLOR of
the Exchequer.
- 1967
- 1967
- Had been STRONGLY IN
FAVOUR of
DEVALUATON since
1964!
- Used a range of strict
DEFLATIONARY
METHODS...
- 1. Raised TAXES.
- 2. Restricted GOVERNMENT
SPENDING within ALL AREAS
of the economy.
- 3. Gave PRINCIPLE
PRIORITY to the BALANCE
OF PAYMENTS crises.
- - Made the government
UNPOPULAR AT FIRST...
- + ... but eventually, Jenkins managed
to achieve a BALANCE OF PAYMENTS
SURPLUS!
- 1969
- - INFLATION was still
operating at a fairly
degrading 12%
- Served as a KEY FACTOR in the
confident LABOUR VICTORY of the
1970 General Election!
- 1969
- + ... but eventually, Jenkins managed
to achieve a BALANCE OF PAYMENTS
SURPLUS!
- 1. Raised TAXES.
- James Callaghan's REPLACEMENT
for the position of CHANCELLOR of
the Exchequer.
- Roy
Jenkins
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