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X bett for In March 1979, the Labor administration of James Callaghan became the first sitting government since 1924 to be voted out of office. In retrospect, Britain’s economic record under Callaghan appears in a more favorable light than it seemed to contemporary observers. A balance of payments surplus was achieved in 1978; inflation had fallen to 7 percent in the same year; and pressure on the currency, aided by earnings from North Sea oil, had eased to such an extent that it proved unnecessary to take up the whole of the IMF loan. With memories of the Winter of Discontent fresh in people’s minds, however, little notice was taken of these positive indications. The perception of an economy in permanent crisis was what mattered. The coming of Thatcherism. In the general election of May, 1979, the Conservative administration, now led by Margaret THATCHER, was returned to office, having promised to restore British prosperity by reining back public spending, shifting from direct to indirect taxation, and, in general, applying market-based rather than Keynesian solutions to the nation’s problems. X bett 2016.

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