MoneyWeek

Things can only get worse

Fifty years ago, Britain was facing a general election, which was to be followed by another later in the year. There are distinct similarities between then and now that might help us anticipate the near future.

Edward Heath had led the Conservatives to a comfortable election victory in 1970, defying the opinion polls. The Conservative platform was distinctly right wing, comprising lower taxes, curbing the power of the trade unions and fighting inflation. Combatting inflationary wage claims in the public sector, then much larger than it is now, was believed to be the key to preventing a “wage-price spiral”.

Early success against the postal workers (which then included all those in the telephone services) was followed by defeat against the 250,000 miners, striking for the first time since 1926. Since coal

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