British Incomes Policy: 1964-1967

Abstract

The paper is divided into three major sections plus a conclusion. In the first section, the nature of Britain's problem is defined and two alternative solutions--an incomes policy approach and a margin of unemployment approach--are discussed. The second section deals with the chronological development of the incomes policy. The trade union movement, its reactions to the government's policy and its relations with the government are discussed in the third section. The structure of the trade union movement is outlined in an effort to point out those of its features which militate against the administration of an effective incomes policy. The government's efforts to gain the unions' co-operation by negotiating with the Trades Union Conference(TUC), by offering threats and inducements, by playing upon traditional loyalties of the unions to the Labour Party, and by being lax in the administration of its own policy are presented in the hope that they may shed some light on the degree to which the unions may be blamed for the policy's failure. The conclusion has been divided into two parts. First, evidence is offered to support the contention that the policy was a failure. In the second part, some of the possible explanations for this failure are drawn together in a discussion of the relative merits of a compulsory versus a voluntary policy.

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