Boys from the Blackstuff – 80s drama about the dole


At the time, this drama series from the BBC caused a major stir revealing the bleak horror of life on the dole for the long-term unemployed of Liverpool. Yozzer Hughes was the character who stood out as a man driven mad by his inability to find a job. Here’s a trailer from the Beeb at the time.

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Austerity economics – how it failed 35 years ago


Since winning the 1979 General Election, the Conservatives had embarked on an economic policy described as ‘monetarism’   This entailed rigorous control of the money supply in order to curb the great British disease of inflation.  The outgoing Labour Chancellor of the Exchequer Denis Healey, no stranger to cutting government spending himself, had dubbed the new creed as ‘sado-monetarism’.

9780436164859-uk-300The high priest of monetarism was a professor at the Chicago school of economics by the name of Milton Friedman.  Without going too far in to the vast detail that any debate on economics can become mired in, Friedman essentially threw out the conventional Keynesian wisdom that in a depression, governments should spend to keep people in work.

Out of control public spending, he argued, would lead to something called ‘stagflation’ – stagnation with high inflation – which was a prevalent condition of many economies in the 1970s.  The answer was a kind of shock therapy where high interest rates, as one weapon, would make it unattractive to spend money.  This would then lead to restraint in wages and prices, which would result in inflation coming down.

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JK Galbraith

Oh that life was so simple, Keynesians retorted angrily – in many newspaper columns and on the letters pages.  Friedman’s leading Keynesian nemesis on the global stage was the elderly but highly alert J K Galbraith, who had served in President Franklin Roosevelt’s administration steering through the New Deal.  He warned over and over again that Friedman’s medicine would lead to idle industrial plants and high unemployment.

Just because it hurt, Galbraith thundered, didn’t mean monetarism was actually doing any good to Britain.

“Suffering must have a purpose: out of much suffering there must come much good.  No one is quite sure how this works in economics; one only knows that the bad times are somehow the price of the good.  Pain and punishment are considered especially salutary for other people.”

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General Pinochet – enthusiastic supporter of austerity economics

So agonising were the effects of monetarism that many on the left pointed out that in its most undiluted form, it had only successfully been applied in Chile – which still languished under a military dictatorship.  The implication being that a democracy could not hold the lid down on a population tormented by the rigours of this doctrine.

Within the trade unions, the widespread suspicion was that the Conservatives were using high levels of unemployment deliberately to beat down pay demands.   With an instinctive hatred of state regulation of the economy, Thatcher didn’t want to get involved in imposing incomes policies (as Labour had tried to do in the 1970s) but fear of the dole, it was thought, was her preferred weapon against wage inflation.

In reality, the Conservatives quietly dropped monetarism and adopted a more pragmatic and less doctrinaire approach after 1982.  But not before they would experience a bitter lesson from Britain’s hugely pissed off youth on how far you can pursue an experiment before the subject bites back.

Sandwiches for the jobless


Through 1981, hundreds of young people made their way down to London on the Jobs Express.  This modern day Jarrow March was received positively by most people with even muted criticism from the Tories and Fleet Street.  Some newspapers did sneer that it was all a far left conspiracy and that the youth were being used by extremists, etc.

But there was no doubting that unemployment in the early 80s recession had hit teenagers very hard with the drying up of apprenticeships and factories closing. As the Jobs Express made its way to London, trade unionists – like those pictured below – mucked in to make sandwiches for the youngsters and give them a cheer.

This being 1981, however, it’s not surprising to read in this article that as one group of teens on the march came back from a disco, they were set upon by fascists. No further details are given but this was a grim sign of the times.

Article from the Wembley Observer
Article from the Wembley Observer

The Mayor who couldn’t get a job


The 1981 March for Jobs was hugely well attended with jobless walking for miles to London to make their point to Maggie. One of those on the dole and facing a bleak future was the former Mayor of Watford, Alan Bonney, who found himself at the age of 40 unable to get into the labour market. Furious, he joined the march and the Daily Star showed him at his political height and subsequent grim position in life.

Alan Bonney as Mayor
Alan Bonney as Mayor
Alan Bonney on the march
Alan Bonney on the march