The cosy world we were told would go on for ever, where full employment would be guaranteed by a stroke of the Chancellor's pen, cutting taxes, defic… - James Callaghan

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The cosy world we were told would go on for ever, where full employment would be guaranteed by a stroke of the Chancellor's pen, cutting taxes, deficit spending – that cosy world is gone. Yesterday, delegates pointed to the first sorry fruits: a high rate of unemployment. ... When we reject unemployment as an economic instrument — as we do — and when we reject also superficial remedies, as socialists must, then we must ask ourselves unflinchingly what is the cause of high unemployment. Quite simply and unequivocally, it is caused by paying ourselves more than the value of what we produce. There are no scapegoats. This is true in a mixed economy under a Labour Government as it is under capitalism or under communism. It is an absolute fact of life which no Government, be it left or right, can alter.

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About James Callaghan

Leonard James Callaghan, Baron Callaghan of Cardiff (27 March 1912 – 26 March 2005), commonly known as Jim Callaghan, was a British politician who served as Prime Minister of the United Kingdom from 1976 to 1979 and Leader of the Labour Party from 1976 to 1980. Callaghan is the only person to have held all four Great Offices of State, having served as Chancellor of the Exchequer from 1964 to 1967, Home Secretary from 1967 to 1970 and Foreign Secretary from 1974 to 1976. He was a Member of Parliament (MP) from 1945 to 1987.

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Alternative Names: Lord Callaghan Jim Callaghan Lord Callaghan of Cardiff James Callaghan, Baron Callaghan James, Baron Callaghan Leonard James Callaghan Leonard James, Baron Callaghan
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Additional quotes by James Callaghan

What would need to be reopened would be the test questions that were put to Mr Heath by M Pompidou and tamely accepted by him. To the question: “Do you agree to work for economic and monetary union?” Mr Heath had said “yes”, but the Labour movement said “no”. To the question: “Will you turn away from the open seas and mould yourself to Europe?” Mr Heath had said “yes” and the Labour movement was saying “no”. A Labour Government will seek to reopen the principles and renegotiate the details, specifically on high food prices which are part of their present policy and a reversal of Britain's food policies for over a century. We intend to have that renegotiated and to return to our traditional freedom to purchase food from other countries outside the EEC without incurring penalty.

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[Callaghan] said that President Pompidou had made it clear that where differences existed between Britain and the French-dominated EEC, "Britain must subordinate them to the extent of a complete rupture with our identity". He asked if Mr. Heath's offer to participate in a European spirit, which signified a French spirit, meant that "we are honour bound not to try to upset the principles of the common agricultural policy?" Had Mr. Heath made it clear that no one believed it made sense to give up buying cheap food from New Zealand to buy dear food from France?

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