ABSTRACT
The history of economic policy in Britain in the 1970s is dominated by the Heath government's attempt at expansion, and its aftermath. No post-war Chancellor of the Exchequer has been so universally condemned by economists as Anthony Barber. His policies have been described as rash to the point of irresponsibility, and the subsequent Labour government both saw itself and was seen as rescuing Britain from the combined effects of his actions, and the world recession which followed the oil price rises. This chapter shows that the Heath government's policies can only be understood in the light of the 'Ricardo phenomenon'. In any other light they appear almost insane. During the period of the Conservative administration, the Labour leadership set about rebuilding its relationship with the trade union movement, which had crumbled towards the end of its previous term of office.
