"We used to think that you could spend your way out of a recession and increase employment by cutting taxes and boosting government spending. I tell you in all candour that that option no longer exists, and in so far as it ever did exist, it only worked on each occasion since the war by injecting a bigger dose of inflation into the economy, followed by a higher level of unemployment as the next step. Higher inflation followed by higher unemployment. We have just escaped from the highest rate of inflation this country has known; we have not yet escaped from the consequences: high unemployment. That is the history of the last twenty years."
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Prime Ministers of the United KingdomPoliticians from EnglandAtheists from EnglandBritish peersEconomists from England
Original Language: English
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Speech to the Labour Party Conference in Blackpool (28 September 1976), quoted in Labour Party Annual Conference Report 1976, p. 188 and James Callaghan, Time and Chance (Collins, 1987), p. 426. This part of his speech was written by his son-in-law, future BBC Economics correspondent Peter Jay
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James Callaghan
Leonard James Callaghan, Baron Callaghan of Cardiff (27 March 1912 – 26 March 2005), commonly known as Jim Callaghan, was a British politician who served as Prime Minister of the United Kingdom from 1976 to 1979 and Leader of the Labour Party from 1976 to 1980. Callaghan is the only person to have held all four Great Offices of State, having served as Chancellor of the Exchequer from 1964 to 1967, Home Secretary from 1967 to 1970 and Foreign Secretary from 1974 to 1976. He was a Member of Parlia
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