BRITAIN: It's High Time to Call It a Day

In a historic reversal of party policy, Prime Minister Harold Wilson's Labor government last week conceded that ambitious social-welfare programs were crippling Britain's economy and announced plans for vast cuts in public spending. Setting forth a four-year economic plan in a 149-page White Paper, Chancellor of the Exchequer Denis Healey proposed a $3.6 billion cut in public spending for 1977-78 and a further $6 billion cut for 1978-79—a reduction of 12% on original plans.

Healey had probably gone about as far as any Labor Chancellor could ever be expected to go. Nonetheless, the...

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