3.6.5 Problems in the economy in the 1970s

In the late 1970s, the post-war economic boom came to an end. Prices of goods and raw materials began to rise sharply and the exchange rate between the pound and other currencies was unstable. This caused problems with the ‘balance of payments’: imports of goods were valued at more than the price paid for exports.

Many industries and services were affected by strikes and this caused problems between the trade unions and the government. People began to argue that the unions were too powerful and that their activities were harming the UK.

The 1970s were also a time of serious unrest in Northern Ireland. In 1972, the Northern Ireland Parliament was suspended and Northern Ireland was directly ruled by the UK government. Some 3,000 people lost their lives in the decades after 1969 in the violence in Northern Ireland.