Jews From The United Kingdom

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April 10, 2026

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April 10, 2026

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"The combined efforts of Government policy since 1979 have been not to improve but substantially to worsen our competitive position. We have gone from a huge manufacturing surplus of £5.5 billion in 1980 to a 1986 third quarter deficit of £8 billion a year... Even with oil production continuing for some time, the current account has gone from a £3 billion surplus to a deficit predicted by the Chancellor of £1.5 billion... Sadly, the Government's great contribution, having refused to stimulate the economy by more respectable means, is a roaring consumer boom, which there is not the slightest chance of their moderating before an election. A roaring consumer boom does not, to any significant extent, mean more employment. In our competitive position, worsening under the Government, it means overwhelmingly higher imports, a still worse balance of payments position and a classic path to perdition. To have produced, after seven and a half years, the combination of total monetary muddle, a worsened competitive position, a widespread doubt in other countries as to how we are to pay our way in the future, a desperately vulnerable currency and the prospect of an unending plateau of the highest unemployment in a major country in the industrialised world is a unique achievement over which the Chancellor is an appropriate deputy acting presiding officer."

- Nigel Lawson

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"While the strength of demand in the British economy should have elicited higher interest rates from early 1987 onwards, Lawson was so fixated with his DM-shadowing policy that he not only refused to raise rates but actually cut them, first in October 1987 and then again in February and March 1987... By the early spring of 1988, Mrs Thatcher was growing increasingly worried about Lawson's attempts to hold sterling down. A row erupted in March, when the Prime Minister rightly criticized Lawson's intervention tactics, saying at Prime Minister's Question Time in the Commons that "you can't buck the market." With the weight of foreign buying growing ever greater, and his Prime Minister by now very much alive to the problem, a reluctant Lawson was forced to call a halt to intervention. Sterling surged through the top range of DM2.90 to DM3.00 that he had imposed. In mid-May, in an effort to stem the rise in the pound without again resorting to intervention, the Chancellor cut interest rates one last time (the Labour Party, one should not forget, was pressing for even bigger cuts). But even Lawson could no longer ignore the mounting evidence of inflationary pressure (in the form of rapid increases in demand and output, in house prices and – as unemployment fell very rapidly – in wages and labour costs). Having reduced interest rates to 7.5% in mid-May to restrain sterling, at the end of May he raised them to restrain inflation, apparently unwilling to recognize that the inflationary pressure was the result of his DM-shadowing policy. Sir Alan Walters, in a radio interview, presciently remarked that the Chancellor, by having delayed far too long in tightening policy, had condemned Britain to much bigger increases in interest rates in the future."

- Nigel Lawson

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"From the start, there was a tendency in the Shadow Cabinet to move away from the Heath line of policy further to the Right: to this I was totally opposed. In particular, I could not support the arguments of Keith Joseph, who was inclined to say that all we had done in the Government of 1970–74 was wrong and not true Conservatism. I totally disagreed with this, because it seemed to me that Keith was fully entitled to measure himself for a hair shirt if he wanted to, but I was blowed if I could see why he should measure me and Ted at the same time. I could not help recalling Selsdon Park, and the swing to the Right in our policies which occurred then, and how long it had taken in Government to get back to the realities of life. I feared that the same thing was beginning to happen again. In particular there was the argument about Incomes Policy and Money Supply, and which was the right way to deal with inflation. I stuck to the view that an Incomes Policy was essential and had been a necessary part of the policies of Conservative Governments since it was first introduced by Peter Thorneycroft when he was Chancellor of the Exchequer. The other doctrine, the monetarist doctrine of which Keith Joseph was the most articulate and intellectual exponent, said that Incomes Policy was unnecessary and unworkable, and that inflation could best be contained by restricting the money supply. This doctrine, based on the teachings of Professor Friedman, seemed to me to be totally divorced from reality. In so far as it was a guide to action at all, it merely was a restatement in new phraseology of the old doctrine of a credit squeeze. But the tide was running strongly in the monetarist direction at that time."

- Keith Joseph

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