Macmillan limitations 1957-63

Macmillan limitations 1957-63

1. 'never had it so good'

   • relied upon growing affluence and hoped people would be content with higher purchase.
   • Effects on the economy show that the balance of payments were not as good

2. Popular appeal

   • Where at the start of his administration his old school style was regarded as a positive and seen as a gentleman, by the end he was regarded as out of touch with the ever changing/ progressing time.
   • Only 2 members of the government had non-public schooling.
     • Eatonites running the country...
     • 35 out of 95MPs were related to Macmillan by marriage

3. Industry

   • Afraid of confrontation/ radicalisation
     • Very evident when looking at how little was done to modernise industry in the period
       • Seen in 90% productivity in W. Germany/ 75% France and only 30% in Britain
       • Britain was also lowest in regards to industrial growth 5.7% W. Germany 5.4% France and Italy and only 2.8 % briatin

4. Night of long knives 1962

   • Removed 1/3 of cabinet
   • Selwyn Lloyd removed as Chancellor of Exchequer after NIC failed with credit squeeze and public sector pay cuts implemented
     • Replaced by Maudling (a much younger minister)
     • This went against plans of 1961
   • Panic ?

5. Unemployment at 800,000 1962/900

6. Peak in 1959?

7. Disagreement with Peter Thorneycroft (COFE 1957-58) when he wanted to pursue a different strategy then Macmillans high inflation and low unemployment

   • £180 million cuts were needed, Macmillan only accepted £100 million
   • Currency reserves were being depleted
   • Brought about his resignation in 1958