A Horseradish
Thursday 31st October 2013 11:41pm [Edited]
8,475 posts
Quote: Aaron @ October 31 2013, 11:16 PM GMT
And, having experienced the horrors of hyper-inflation, the trade unions are equally eager to work in conjunction with businesses and politicians to keep wages and costs reasonable. That's a massive and hugely underrated factor in Germany's success in recent decades.
Well, there are comments that could be made. The British guys came back from the war and insisted rightly on change. The different classes had been in battle together. The perspectives today of dinosaurs are typically modish. At the time, it was all unquestionably modern. Churchill - who I rate quite highly - was already getting on a bit and initially resistant but even he accepted it. He was sufficiently pragmatic to get re-elected in the early 1950s. He continued with the reformed systems that Labour had introduced after 1945. Labour had been kicked out in 1950-1951 essentially because they were knackered. Nearly all of the Cabinet were old men who had waited ages for their moment, done what they could and run out of steam.
Neither Labour or the Conservatives did badly in the period 1945-1966. Back in 1945, Cabinet Ministers had been panicking privately. We were truly bankrupt. There were exchanges about the very real prospect of mass starvation. The public weren't told because the extent of national instability that would have caused would have done what the Germans hadn't succeeded in doing. So it was that Maynard Keynes, an ill man, went to the States for a loan and was rejected. Churchill then had to use his American connections to get a loan. And within years we had the NHS and eventually after a decade the end of rationing. A minor miracle.
But it was largely built on consumer demand. Industry was depleted so perhaps it had to be. There were few alternatives. Around 1960, so wonderful was it all that we didn't have enough people to do the jobs, hence greater immigration. Houses were bought. Car ownership rocketed. The workers had been told to consume. Consequently they wanted to consume more. Demands were ultimately outlandish because of that encouragement and were even giving Barbara Castle a headache by the late 1960s. The oil crisis in 1973 changed things dramatically. It was the key factor. I think the price quadrupled overnight. Between 1973 and 1979 many demands were to maintain a standard of living rather than to improve it. But they could be painted as feckless because of what had occurred immediately before and their actions became desperate.
It all could have been avoided. Had people been given more political power rather than economic carrots, the story would have been very different. There are arguments for and against PR but the absolute resistance to it within the Establishment is telling. So too the way the public utilities were then run. It is that lack of people power - I prefer to describe it as an ability to assume greater management responsibility - which is fundamental to the unions' focus on money and Margaret Thatcher's subsequent clampdown.