Britain: More Freeze & Squeeze

The land of the mod and the miniskirt is also the home of the mini-growth economy. Last summer, faced with mounting international debts, a critical gap between rising imports and diminishing exports, and growing skepticism about the value of the pound sterling, Britain's Labor government put the nation on a deflationary diet. Wages, profits and dividends were frozen; taxes were pegged high to dampen spending, and even a slight rise in unemployment was tolerated by a Labor Party that had always stood for full employment. Saddled with such restraints, Britons quickly became uncommonly economy-conscious. And they listened with uncommon...

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