17th March, 1965. Vol. 3, No. 11
121. Editorial 122. Ireland, Steel 123. Incomes Policy 124. Aircraft Workers 125. Fenner Brockway writes 126. Vietnam 127. Books on Steel 128. 1.M.F.
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Robin Blackburn, Ken Coates
193] again?
HE Financial Times reported on Monday that Wall Street will be ‘con-
cerned at any extension of existing welfare programmes (in Britain) while some reduction, too, in housing expenditure it often considered to be called for.’ (See our stop press for an extensive summary of this report). Thus we see the domestic consequences of Mr. Wilson’s support for U.S. brinkmanship in Vietnam.
But this report has even more sinister undertones. One is inevitably reminded of 1931, the blackest year in the history of the Labour Party. There are many similarities; a Labour Government without a firm Parliamentary majority confronted with an intense economic crisis leaning upon U.S. big business for support. In 1931, the big U.S. businessmen insisted on a cut in the dole in exchange for a loan. In 1965, Wall Street expects deflationary measures in exchange for support for sterling. It would also have more ‘confidence’ if plans for steel nationalisation are dropped and if steps are taken to implement Labour’s ‘venerable incomes policy’.
There is, however, a more cheering aspect to the report: Wall Street has misgivings about ‘rumours from London that there is a dispute within the Cabinet on whether the forthcoming Budget should be expansionist or deflationary’. Translated into political terms. this means a dispute between those members of the Cabinet who want Labour’s election programme of reforms to be implemented and those who want to sacrifice even these meagre steps because of the economic crisis. Members of the Cabinet should study their history books: 1931 was followed by a split in the Labour Party and the return of the Tories, together with their ‘National’ allies, with an overwhelming majority.
Santayana said ‘He who does not learn from history is doomed to repeat it.’ Surely there are those in the Cabinet who are so determined not to repeat that particular piece of history that they will speak out now. They would be assured of tremendous response from the Labour Party members; a firm call to stand up to the pressure of American big business would evoke enthusiastic support. This call should not be left too late.