18 nov 1967 anni - The Government had to turn to devaluation

Descrizione:

The Conservatives left the economy in turmoil. With the economy £800 million in debt the Labour Government had to cut wages and rise taxes. Wilson, Callaghan and Brown though Devaluation was humiliating for Britain. The Department of Economic Affairs was Labour idea of corporatism (the government, trade unions and businesses sit together and discus future policy). However the Treasury was blamed for economic failure and stifled Brown's efforts. With being £1500million in debt, Labour asked the US for a final loan. This did not produce the right results and Britain finally devlaued the pound. Labour was critised by Heath as in 37 months Labour had denied 20 times that they would ever devalue the pound.