Notes

What is the value of Source 2 for an historian studying Labours economic policy?

This source is very useful to a historian studying labours economic policy as it demonstrates that Wilson decided to use devaluation of the pound to solve economic problems Britain was facing. Wilson says he has to attack 'our problems at the root' this refers to Wilson inheriting £800 million deficit from the conservatives in 1964. This speech was in 1967 which was 3 years after Wilson became the Prime Minister. This is useful as it shows the hesitance from the labour party to devalue the Stirling in order to sort out the balance of payments problems. This is linked when in the source Wilson says 'tonight we must face a new problem.' This illustrates how the party have tried many methods to resolve it, including the 2nd of November in 1967 in which the bank of England spent £200m trying to shore up the pound from its gold and dollar reserves.

Harold Wilson told the general public his new policy in a television broadcast. This is useful as it shows the party are trying to reassure everyone it will be okay as TV broadcast will be available to everyone as he says that the pound in Britain will not be devalued 'in your pocket or purse.' Being a broadcast has huge limitations on the source as Wilson fabricated the facts and results of the devaluation to ease the public. He wasn’t fully truthful of the repercussions as that would cause a roar of outrage with the public. Especially as he confidently denied devaluation in his previous years 20 times over 26 months. Therefore, the tone of the source is very light and optimistic as he uses words like 'tremendous' to give confidence in the party. The next election wasn’t for another 3 years which implies that Wilson did the devaluation in 67 so that the public would 'forget' by the next election.

The source is additionally useful as it shows the main reason for the devaluation. As it shows that labour wanted to 'sell more goods abroad on a competitive basis' and their aspiration of keeping balance of payments. Even if it meant 'we buy from abroad will be dearer' but it meant British goods will be cheaper.