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...

Want the full story?

Subscribe Now


Get TIME the way you want it

  • One Week Digital Pass — $4.99
  • Monthly Pay-As-You-Go DIGITAL ACCESS$2.99
  • One Year ALL ACCESSJust $30!   Best Deal!
    Print Magazine + Digital Edition + Subscriber-only Content on

Learn more about the benefits of being a TIME subscriber

If you are already a subscriber sign up — registration is free!