- Economy was growing.
- Increase in wages and real wages - people can buy more for their money.
- More people were buying TVs, washing machines, refrigerators etc. which people could not afford in the past.
- Unemployment was low compared to present day.
- Credit was given more freely - more people began to borrow money from banks etc.
- More people were going on holiday abroad.
- Inflation never rose above 5%.
- Living standards were rising.
- Industry was still growing (even though it was slow).
- Britain recovered quickly to the financial problem after the Suez Crisis.
"Thirteen wasted years"
- Budget politics - political parties declare tax cuts before the General Election, they get elected, consumer spending rises resulting in the increase of inflation.
- Economic growth was poor compared to other countries (relative decline).
- Conservative party did not have a economic strategy - "stop-go" economics was failing.
- Unemployment was rising.
- World trade was declining.
- Shipbuilding and car companies had collapsed.
- Companies were reluctant to invest.
- Productivity in British industry was declining.
- Devaluation of the pound.
- Inflation growth.
- In industry: poor management (poorly trained workers and managers), managers paid themselves a lot, frequent strikes among the workers slowed down productivity, machinery was inferior compared to other countries therefore produced less.
- Britain tended to spend more money abroad and in defence - meant that cutbacks in domestic investment was necessary.
- NHS cost more than expected.
- Lack of technical and scientific education - British culture taught children to be gentlemanly instead of entrepreneurs.
- People's attitude towards work was complacent and generally negative.
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