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F.S. Brooman, Professor of Economics, considers cost inflation and the possible effect on the economy of an incomes policy. First, with the aid of an animated model, he outlines the operation of inflation and shows how it results in different industries chasing each other for increased shares of the national income, with prices, profits and wages all going up in money terms. He explains that an incomes policy is necessary if the struggle for increased shares of total income is to be prevented from causing continuous inflation. A special feature of the incomes policy of the 1960s was the setting up of the National Board for Prices and Incomes. In filmed interviews, Professor Brooman discusses with Allan Fels, who has written a study of the work of the Board, and with Dr. Ralph Turvey, a well-known economist who was a member and Deputy Chairman of the Board, its advantages and shortcomings and the reasons for its relative lack of success. They end by considering the prospects of and the need for a renewed attempt at incomes policy in the 1970s.
Metadata describing this Open University video programme
Module code and title: D282, National income and economic policy
Item code: D282; 08
First transmission date: 01-10-1972
Published: 1972
Rights Statement:
Restrictions on use:
Duration: 00:23:32
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Producer: Nicholas Gosling
Contributors: F S Brooman; Allan Fels; Ralph Turvey
Publisher: BBC Open University
Keyword(s): Economic policy; Inflation; Macro economics; Prices and Incomes Board
Footage description: Vox-pop sequence: workers are asked what they know of the Prices and Incomes policy. F.S. Brooman defines demand and cost inflation; demand inflation he illustrates with a model. Brooman pursues a closer analysis of cost inflation. He uses a model. Brooman, after explaining the necessary simplicity of the previous example of cost inflation, goes on to consider a more complicated example which involves differing industries, but which serves to emphasize the complexity of cost inflation. A model is used to illustrate the example. Brooman then describes the main responsibility of an incomes policy. Allan Fels describes the functions of the Prices and Incomes Board of the last Labour administration (up to 1970) and assesses its success, as well as its weaknesses. Prof. Brooman assesses the success of the incomes policy of the 1960s using a diagram to assist the conclusion. Brooman asks Ralph Turvey why the policy did not stabilise the price level. Turvey gives his opinion and then himself assesses the weaknesses of the Prices and Income Board. Brooman and Turvey discuss relative earnings and the problems of sharing out income. Brooman asks Allan Fels what he thinks of the policy of the sixties with respect to price control. Allan Fels replies. Dr. Turvey is also asked the same question and responds in some detail. Dr. Turvey suggests a method by which prices could be sampled (as in quality control) to arrive at a more improved method of price control. Aubrey Jones in an interview given in 1966 explains the aims and the purpose of the Prices and Incomes Board. Allan Fels, Dr. Turvey, Prof. Brooman then assess the need for a prices and incomes policy on a permanent basis throughout the seventies. Brooman sums up. Credits.
Master spool number: 6HT/70708
Production number: 00521_2244
Videofinder number: 142
Available to public: no