The early 1990s recession describes the period of economic downturn affecting much of the Western world in the early 1990s. The impacts of the recession contributed in part to the 1992 U.S. presidential election victory of Bill Clinton over incumbent president George H. W. Bush . The recession also included the resignation of Canadian prime minister Brian Mulroney , the reduction of active companies by 15% and unemployment up to nearly 20% in Finland, civil disturbances in the United Kingdom and the growth of discount stores in the United States and beyond.
112-679: Government Offices for the English regions ( GOs ) were established in 1994 by the John Major government. Until 2011, they were the primary means by which a wide range of policies and programmes of the Government of the United Kingdom were delivered in the regions of England . There were Government Offices in the East Midlands , East of England , London , North East , North West (until 1998 there
224-633: A leadership bid by Anthony Meyer ; though she won easily, 60 MPs had not voted for her, and it was rumoured that many more had had to be strong-armed into supporting her. By early 1990, it was clear that bills for many under the new poll tax regime would be higher than anticipated, and opposition to the Tax grew, with a non-payment campaign gaining much support and an anti-poll tax demonstration in Trafalgar Square in March ending in rioting . The Conservatives lost
336-453: A 'budget for savers', with the creations of the tax-exempt special savings account (TESSA), arguing that measures were required to address the marked fall in the household savings ratio that had been apparent during the previous financial year . Major also abolished the composite rate tax and stamp duty on share trades, whilst increasing taxes on alcohol, cigarettes and petrol. Tax cuts were also made which benefited football associations,
448-571: A 'favourite' of Thatcher's and he was widely tipped for further promotion. Nevertheless, Major's appointment to Foreign Secretary in July 1989 came as a surprise due to his relative lack of experience in the Cabinet and unfamiliarity with international affairs. Major found the prospect daunting, and unsuccessfully attempted to convince Thatcher to allow him to stay on at the Treasury. There were also fears within
560-775: A 7.2% level (it was reached in October 1999). For instance, in Montreal ( Quebec ) unemployment affected 16.7% of the active population by December 1992 while the number of households relying on welfare increased from 88,000 to 102,000 between April 1990 and December 1992. The early 1990s recession was notable for being substantially more negative for employment in Ontario than the early 1980s recession; Ontario's percentage of total age 15-64 population employed began to decline early in 1989 and only began to grow again early in 1994, five years of decline with an 8.2 percentage point drop. By contrast, in
672-602: A Conservative party event in Brixton in April 1970, and the two became engaged shortly thereafter, marrying at St Matthew's Church in Brixton on 3 October 1970. John's mother died shortly before in September at the age of 65. John and Norma moved into a flat at Primrose Court, Streatham , which John had bought in 1969, and had their first child, Elizabeth, in November 1971. In 1974
784-572: A Foreign Office minister on a trip to South America, visiting Colombia , Peru and Venezuela . In September 1985, Major was made Parliamentary Under-Secretary of State for the Department of Health and Social Security (DHSS), before being promoted to become Minister of State in the same department in September 1986. The large size of the DHSS granted Ministers a greater degree of responsibility than in other departments, with Major assisting with work on
896-552: A Labour stronghold, the Conservatives received a huge boost following Enoch Powell 's anti-immigration ' Rivers of Blood speech ' in April 1968 and Major won, despite strongly disapproving of Powell's views. Major took a major interest in housing matters, with Lambeth notorious for overcrowding and poor-quality rented accommodation. In February 1970 Major became Chairman of the Housing Committee, being responsible for overseeing
1008-433: A candidate for a more promising seat, and despite numerous attempts was unsuccessful until December 1976. Growing increasingly frustrated, Major resolved to make one last attempt, applying for selection to the safe Conservative seat of Huntingdonshire and finally he succeeded. Major was in some ways an odd choice, being a born-and-bred Londoner in a largely rural constituency still home to many landed families; however, he
1120-432: A difficult one, with his mother suffering from pleurisy and pneumonia and John requiring several blood transfusions due to an infection, causing permanent scarring to his ankles. The Major family—including John, his parents, and his two older siblings Terry and Pat) —lived at 260 Longfellow Road, Worcester Park , Surrey, a middle-class area where Major's father ran a garden ornaments business and his mother worked in
1232-409: A divorcée 13 years his elder with two children who lived opposite the family on Burton Road, who became his mentor and lover. Seldon writes "She ... made Major smarten his appearance, groomed him politically, and made him more ambitious and worldly." Major later moved in with Kierans when his family left Burton Road in 1965; their relationship lasted from 1963 to sometime after 1968. Major left
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#17328379217031344-726: A fact-finding trip to the Middle East in April 1982. The group met with King Hussein of Jordan and Yasser Arafat of the Palestinian Liberation Organisation in Lebanon; in Israel they were briefly caught in the middle of a shooting incident between Israeli troops and a Palestinian rock-thrower. Major later became an assistant whip in January 1983, responsible for East Anglian MPs. During this period Major became also involved in
1456-560: A fiercely critical broadside against Thatcher in the House of Commons on 13 November. The day after Howe's speech Michael Heseltine , Thatcher's former Secretary of State for Defence who had acrimoniously resigned in 1986 over the Westland affair , challenged Thatcher for the leadership of the Conservative Party. Both John Major and Foreign Secretary Douglas Hurd supported Thatcher in
1568-583: A high turnout, the Conservatives earned over 14 million votes which remains a record in any UK general election. This was the Conservatives' fourth consecutive election victory. Neil Kinnock was replaced by John Smith as Labour leader and Leader of the Opposition in 1992. On 16 September 1992, the pound sterling crashed out of the European Exchange Rate Mechanism after the Chancellor of
1680-508: A landslide in the 1997 general election , ending 18 years of Conservative government. After Blair became prime minister, Major served as Leader of the Opposition for seven weeks while the leadership election to replace him took place. He formed a temporary shadow cabinet , and Major himself was shadow foreign secretary and shadow secretary of state for defence . His resignation as Conservative leader formally took effect in June 1997 following
1792-661: A landslide to the National Party , who continued with Douglas' reforms. François Mitterrand was elected to a second term on 8 May 1988 and his political party, the Socialist Party , and its allies won a very narrow majority in the National Assembly the next month. Weakened by the recession and corruption scandals, the Socialist Party suffered severe defeats in the 1992 local elections ( regional and cantonal ) and
1904-606: A local church fair and was invited to watch his first debate in the House of Commons , where Harold Macmillan presented his only Budget as Chancellor of the Exchequer . Major has attributed his political ambitions to this event. Major's first job was as a clerk in the London-based insurance brokerage firm Price Forbes in 1959, though finding the job dull and offering no prospects he quit. Major began working with his brother Terry at
2016-482: A local library and as a part-time dance teacher. John Major later described the family's circumstances at this time as being "comfortable but not well off". Following a German V-1 flying bomb attack in the area in 1944 which killed several people, the Majors moved to the village of Saham Toney , Norfolk, for the remainder of the war . John began attending primary school at Cheam Common School from 1948. His childhood
2128-411: A new leader had been elected. Major subsequently announced on 22 November that he would stand in the second ballot, with Thatcher's backing. Major's platform was one of moderation on Europe, a review of the poll tax, and the desire to build a "classless society". Unlike in the first ballot, a candidate only required a simple majority of Conservative MPs to win, in this case 187 of 372 MPs. The ballot
2240-575: A number of candidates fighting for the crown. It would merely prolong the agony." Major served as Leader of the Opposition for seven weeks while the leadership election to replace him was underway. He formed a temporary Shadow Cabinet , but with seven of his Cabinet ministers having lost their seats at the election, and with few senior MPs left to replace them, several MPs had to hold multiple briefs. Major himself served as shadow foreign secretary (having served as foreign secretary for three months in 1989) and Shadow Secretary of State for Defence , and
2352-450: A priority, stating that tough measures were needed to bring it down and that "if it isn't hurting, it isn't working." He delivered his first Autumn Statement on 15 November, announcing a boost in spending (mainly for the NHS) and with interest rates to be kept as they were. As Chancellor, Major presented only one Budget , the first to be televised live, on 20 March 1990. He publicised it as
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#17328379217032464-434: A problem. France, just as the rest of continental Europe, entered recession later compared to economies of anglophone countries. The economic climate started to worsen in late 1989 (first in industry) in several phases: The recession officially starts at the end of 1992 and beginning of the 1993. It is a brief but important recession: GDP drops 0.5% in the last quarter of 1992 and 0.9% in the first quarter of 1993. The drop
2576-460: A restructuring and write-off of some Third World debt at a Commonwealth Finance Ministers meeting in Trinidad and Tobago in September 1990. Opposition within the Conservative Party to Margaret Thatcher had been brewing for some time, focusing on what was seen as her brusque, imperious style and the poll tax , which was facing serious opposition across the country. In December 1989, she had survived
2688-550: A serious car crash in which he broke a leg and had to be flown home. Leaving hospital, he split his time between Jean Kierans' house and a small rented flat in Mayfair , working at Standard Bank's London office and resuming his banking diploma and activities with the Young Conservatives in his spare time. Major stood again as Councillor in the 1968 Lambeth London Borough Council election , this time for Ferndale ward . Though
2800-467: A single European currency there could instead be a 'hard ECU ', which different national currencies could compete against and, if the ECU was successful, could lead to a single currency. The move was seen as a wrecking tactic by France and Germany, especially when the increasingly Euro-sceptic Thatcher announced her outright opposition to EMU, and the idea was abandoned. More successfully, Major managed to get
2912-493: A year or longer. The early 1990s recession in Canada is classified as a Category 4 recession, the same category as the early 1980s recession. Notably, the early 1990s recession did not have as deep a contraction as the early 1980s recession, but was of longer duration as it had four years of less than 2.3% growth in real GDP (1989–92), while the early 1980s recession only had two years of less than 2.3% growth (1980 and 1982), and only
3024-559: Is a British former politician who served as Prime Minister of the United Kingdom and Leader of the Conservative Party from 1990 to 1997. He previously held Cabinet positions under Prime Minister Margaret Thatcher , his last as Chancellor of the Exchequer from 1989 to 1990. Major was Member of Parliament (MP) for Huntingdon , formerly Huntingdonshire , from 1979 to 2001. Since stepping down as an MP in 2001, Major has focused on writing and his business, sporting, and charity work, and has occasionally commented on political developments in
3136-420: Is also affected by the recession with a 3.9% decrease in volume of output. All the composants of GDP were depressed in 1993: The weak economic climate resulted in significant increase in unemployment and public deficits. Reduced activity levels had a direct impact on public finances: social benefits grew 6.8% in 1993 whereas tax revenues only increased 2.4% despite increases in tax rates and charges throughout
3248-422: Is amplified by weak exports figures as most of France's trading partners also entered recession at the end of 1992. On a yearly basis, GDP growth was limited to 1.5% in 1992 and –0.9% in 1993, the first negative figure since 1975. Industry is vastly affected by the recession: output dropped 5.3% in volume in 1993 with a catastrophic first semester and a very limited recovery in the second. The construction industry
3360-490: The 1990 Mid Staffordshire by-election to Labour and the 1990 Eastbourne by-election to the Liberal Democrats , both Conservative seats, causing many Conservative MPs to worry about their prospects at the upcoming general election, due in 1991 or 1992. Thatcher's staunch anti-European stance also alienated pro-Europe Conservatives. On 1 November, the pro-European deputy prime minister Geoffrey Howe resigned, issuing
3472-505: The 1993 legislative elections (winning only 53 seats out of 577, its worst turnout until 2017) where the RPR - UDF right-wing coalition were returned to power with a massive majority of 449 seats out of 577. In the United States during the recession more people chose to shop at discount stores . This caused Kmart and Walmart (which became the country's largest retailer in 1989) to outsell
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3584-799: The Citizen's Charter , removed the Poll Tax and replaced it with the Council Tax , committed British troops to the Gulf War , took charge of the UK's negotiations over the Maastricht Treaty , led the country during the early 1990s economic crisis , withdrew the pound from the European Exchange Rate Mechanism (on Black Wednesday ), promoted the socially conservative back to basics campaign , privatised
3696-510: The Foreign & Commonwealth Office (FCO) that Major would be Thatcher's 'hatchet-man', as her relations with the department under Geoffrey Howe had been poor and characterised by mutual distrust. Major accepted the job and began to settle into the department, living in an upstairs room at the FCO and devolving decision making where necessary, though he found the increased security burdensome and disliked
3808-404: The Maastricht Treaty . On 12 May 1994, John Smith died from a heart attack and was replaced by Tony Blair who continued Labour's modernisation under the slogan of " New Labour ". Some polling at the end of 1994 and the start of 1995 had Labour with a vote share of over 60%. The Tories remained divided over this era and in an attempt to silence his critics, Major resigned as Party leader. In
3920-577: The Young Conservatives in Brixton. He soon became a highly active member; this helped increase his confidence following the failure of his school days. Encouraged by fellow Conservative Derek Stone, he started giving speeches on a soap-box in Brixton Market . According to his biographer Anthony Seldon , Major brought "youthful exuberance" to the Tories in Brixton, but was sometimes in trouble with
4032-403: The leadership election , Major comfortably beat John Redwood in June 1995. Following a string of by-election defeats, the Conservatives' majority of 21 had been eroded by 13 December 1996. In the 1997 election on 1 May 1997, Labour won a 179-seat majority, ending their eighteen years in opposition. This was the worst general election result of the 20th century for the Conservatives, seeing
4144-746: The 1971 Lambeth Council election, Major continued to nurse political ambitions, and with help from friends in the Conservative Party managed to get onto the Conservative Central Office's list of potential MP candidates. Major was selected as the Conservative candidate for the Labour-dominated St Pancras North constituency, fighting both the February and October 1974 general elections, losing heavily both times to Labour's Albert Stallard . Major then attempted to get selected as
4256-484: The 1980s, in particular removal of bank borrowing controls and liberation of foreign borrowing, combined with strong currency and a fixed exchange rate policy led to a foreign debt financed boom. Bank borrowing increased at its peak over 100% a year and asset prices skyrocketed. The collapse of the Soviet Union in 1991 led to a 70% drop in trade with Russia and eventually Finland was forced to devaluate , which increased
4368-527: The 1991 introduction of the Goods and Services Tax (GST). He resigned as prime minister and party leader in 1993, and the Progressive Conservatives collapsed in the election held later that year , winning only two seats. In Australia, Paul Keating (then Treasurer of Australia , and future Prime Minister) referred to it as "the recession that Australia had to have". This quote became a cornerstone of
4480-510: The 4% range between 1984 and 1988, but began to rise again in 1989, averaging 5.0% that year. Gordon Thiesen, asserted in 2001 when he was the Bank of Canada governor, that inflationary pressures in Canada were partly fueled by Canadians having had a greater "inflation psychology" than Americans, that is a higher propensity to spend now in the belief the price for the same product will be substantially higher in short period of time. To reduce inflation,
4592-661: The Argentine foreign minister , the first such meeting since the end of the Falklands War seven years earlier. Major's last major summit as Foreign Secretary was the Commonwealth Heads of Government Meeting (CHOGM) in Malaysia . The meeting was dominated by the issue of sanctions on South Africa, with Britain being the only country to oppose them, on the grounds that they would end up hurting poorer South Africans far more than
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4704-653: The Bank of Canada and the Department of Finance announced their monetary policy would be governed by formal inflation targets, with a target of 3% for 1992. Inflation was contained to 4.8% in 1990, 5.6% in 1991 and then decreased to 1.5% in 1992 and 1.9 in 1993, well below the target of 3%. This suggests the Bank of Canada's restrictive monetary policy overshot its target, suppressing GDP and employment growth in 1992 and 1993 in what would normally have been an economic recovery period. In fact, complex macro-economic modelling undertaken estimates that "excessive monetary restraint" of
4816-471: The Bank of Canada raised its prime rate from 10% in 1986 and 1987, to 12.25% at the start of 1989, peaking at 14.75% in June 1990, thereby prompting Canadians to reduce spending, reduce borrowing and begin saving sooner and more greatly than Americans. Particularly hard hit were Canada's real estate markets, the building industry, especially factory construction, and consumer confidence. Then in February 1991,
4928-509: The Bank of Canada reduced real GDP growth by 1.5 percentage points in 1990, 2.9 percentage points in 1991 and 4.0 percentage points in 1993. Another cause of Canada's recession were several tax increases instituted by the federal government between 1989 and 1991. These increases related to sales, excise and payroll taxes were modelled to have reduced real GDP growth by 1.6, 2.4 and 5.1 percentage points, respectively, in 1990, 1991 and 1992, although if these tax increases had not been implemented
5040-416: The Conservatives would suffer a landslide defeat in the upcoming general election. During this period, Michael Portillo had frequently been touted as the favourite to replace Major, but lost his seat in the election, thus eliminating him from the running. Although many Conservative MPs wanted Major to resign as leader immediately because of the 1997 election loss, there was a movement among the grassroots of
5152-508: The ERM at a rate of DM 2.95 to £1.00 (with an agreed 6% floating 'band' either side) was announced the following day. An interest rate cut of 1% (from 15%) was also announced on the same day. The rest of Major's Chancellorship prior to the leadership contest was largely uneventful; he considered granting the Bank of England operational independence over monetary policy, with the ability to set interest rates, but decided against it. He also agreed
5264-771: The Environment Committee and also assisted with work on the Housing Act 1980 , which allowed council house tenants the Right to Buy their homes. At this time Major lived in De Vere Close, Hemingford Grey. Major's first promotion came when he was appointed as a Parliamentary Private Secretary in January 1981 to Patrick Mayhew and Timothy Raison , both Ministers of State at the Home Office . Seeking to gain more exposure to foreign affairs, he joined several Labour Party MPs on
5376-549: The European Union , parliamentary scandals (widely known as "sleaze") and questions over his economic credibility. Despite being reelected as Conservative leader in the 1995 leadership election , his government remained unpopular, and soon lost its parliamentary majority. The Labour Party pulled ahead of the Conservatives in every local election during Major's premiership, which increased after Tony Blair became Labour leader in 1994 . The Conservatives were defeated by Labour in
5488-471: The Exchequer Norman Lamont delivered his budget speech to the House of Commons, which included tax cuts widely perceived to achieve votes at the forthcoming general election. The next day, as universally expected, Major called an election for 9 April. To the surprise of many pollsters, the Conservatives won a majority on the 9 April election, with 336 seats, and earning 41.9% of the vote. With
5600-411: The Exchequer Norman Lamont had invested heavily in trying to keep it there, adjusting interest rates four times in one day. This event would later be called Black Wednesday . Despite the recession finally ending in 1993, the Conservatives' popularity didn't improve. Major's second ministry was also defined by conflicts within the Conservative Party regarding Europe following the government's defeat on
5712-446: The House of Commons at the 2001 general election , having announced his retirement from Parliament on 10 March 2000. Jonathan Djanogly took over as MP for Huntingdon, retaining the seat for the Conservatives at the 2001 election. Early 1990s recession Primary factors believed to have led to the recession include the following: restrictive monetary policy enacted by central banks , primarily in response to inflation concerns,
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#17328379217035824-511: The Huntingdon seat by a large margin in the 1979 general election , which brought the Conservatives led by Margaret Thatcher to power. He made his maiden speech in the House of Commons on 13 June 1979, voicing his support for the government's budget. Major assiduously courted contacts at all levels of the party in this period, joining the informal 'Guy Fawkes club' of Conservative MPs and attending various Committees . He became Secretary of
5936-594: The LEB and took up a post at District Bank in May 1965, though he soon left this to join Standard Bank the following year, largely because the latter offered the chance to work abroad. In December 1966 he was sent for a long secondment in Jos, Nigeria , which he enjoyed immensely, though he was put off by the casual racism of some of the ex-pat workers there. In May 1967 he was involved in
6048-702: The Offices: The abolition of the Government Offices was announced in the Coalition Government's Spending Review in October 2010. It was stated at that time that "The GO Network will therefore close no later than the end of March 2011. Functions undertaken by the GO Network are now in the process of being wound down, with the exception of a small number which may transfer elsewhere." John Major [REDACTED] Sir John Major (born 29 March 1943)
6160-513: The Queen 's invitation to form a government, succeeding Margaret Thatcher . He inherited a majority government from Margaret Thatcher who had been the prime minister for the previous eleven years. The Conservatives' popularity was low, with some polling showing Labour 's Neil Kinnock with a 23% lead over the Tories in April 1990 following the introduction of the Community Charge (poll tax). By
6272-539: The Social Security Act 1986 and improving provision for disabled people. Major began to gain a bigger profile, giving his first speech at the Conservative Party Conference in October 1986. He first attracted major national media attention in January 1987 over cold weather payments to the elderly, when Britain was in the depths of a severe winter. Amidst intense media criticism, Major discussed
6384-452: The Treasury from 1987 to 1989, Foreign Secretary in 1989, and Chancellor of the Exchequer from 1989 to 1990. Following Thatcher's resignation in 1990, after a challenge was launched to her leadership, Major stood in the 1990 Conservative leadership election to replace her and emerged victorious, becoming prime minister. Major's mild-mannered style and moderate political stance contrasted with that of Thatcher. As prime minister, Major created
6496-720: The UK he and Thatcher met with French president François Mitterrand , in which the future direction of the European Community was discussed. In September 1989, Major delivered a speech at the United Nations General Assembly , in which he pledged to support Colombia's effort to tackle the drugs trade and reiterated Britain's opposition to the apartheid regime in South Africa. Major also met US president George H. W. Bush in Washington, D.C. and Domingo Cavallo ,
6608-573: The UK to remain in the European Union , and has often criticised Brexit since the outcome of the 2016 referendum . Major was appointed a Knight Companion of the Order of the Garter (KG) in 2005 for services to politics and charity, and became a member of the Order of the Companions of Honour in 1999 for his work on the Northern Ireland peace process. Although public favourability of Major has improved since he left office, his premiership has generally been viewed as average in historical rankings and public opinion of British prime ministers. John Major
6720-433: The UK's sectors. Falling house prices stalled construction in the housing sector. Economic growth wasn't re-established until early 1993. By December 1991, unemployment was at 2.5 million (compared to 1.6 million 18 months earlier). Additionally, inflation was in double digits and interest rates reached 15%. However, opinion polling for Major's government remained stable during this period. On 10 March 1992, Chancellor of
6832-441: The US, was the high value of the Canadian dollar, as high as 86-cents American in 1991, which made Canada's export manufactured goods, such as automotive parts, textiles and intermediate industrial goods and materials, uncompetitive in international markets. Combined with Canada's manufacturing productivity at the time being among the lowest in the G7 (caused by a lack of investment in new equipment or in research and development) and
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#17328379217036944-486: The aim being to increase funding on safety measures following the Bradford City stadium fire and Hillsborough disaster . Extra funding was also made available to Scotland in order to limit the impact of the Community Charge (widely dubbed the 'Poll Tax'), which had been introduced there that year. The European Community's push for full Economic and Monetary Union (EMU) was another important factor in Major's time as Chancellor; in June 1990 he proposed that instead of
7056-441: The apartheid regime at which they were aimed. The summit ended acrimoniously, with Thatcher controversially and against established precedent issuing a second final communiqué stating Britain's opposition to sanctions, with the press seizing on the apparent disagreement on the matter between Major and Thatcher. After just three months as Foreign Secretary Major was appointed Chancellor of the Exchequer on 26 October 1989 following
7168-427: The building of several large council estates . He also promoted more openness at the council, initiating a series of public meetings with local residents. Major also undertook fact-finding trips to the Netherlands, Finland and the Soviet Union . Despite the Lambeth housing team being well-regarded nationally, Major lost his seat in the 1971 Lambeth London Borough Council election . Major met Norma Johnson at
7280-448: The business in severe financial difficulties. A recalled business loan which the family were unable to repay forced Tom Major to sell the house in Worcester Park in May 1955, with the family moving to a cramped, rented top-floor flat at 144 Coldharbour Lane, Brixton . With his parents distracted by their reduced circumstances, John's difficulties at Rutlish went unnoticed. Acutely conscious of his straitened circumstances in relation to
7392-415: The couple moved to a larger residence at West Oak, Beckenham , and had a second child, James, in January 1975. Meanwhile, Major continued to work at Standard Bank (renamed Standard Chartered from 1975), having completed his banking diploma in 1972. Major was promoted to head of the PR department in August 1976, and his duties necessitated the occasional foreign trip to East Asia. Despite his setback at
7504-438: The early 1980s Ontario's employment percentage decline was shorter than Canada's as a whole and only had a 4.4 percentage point contraction. C.D, Howe Institute's Business Cycle Council classifies Canada's recession according to their severity, with Category 4 recessions being the second highest after Category 5, which is a depression. It defines Category 4 recessions as having substantial declines in real GDP and employment for
7616-526: The early 1990s recession actually saw a decrease in GDP per capita, that being by $ 29 in 1991. Both recessions had high unemployment after the recessionary period had officially ended with unemployment rates of 12% and 11.4%, in 1983 and 1993, respectively. Other sources describe the early 1990s recession as "the deepest in Canada since the Great Depression of the 1930s" naming it "the Great Canadian Slump of 1990–92." Finland underwent severe economic depression in 1990–93. Badly managed financial deregulation of
7728-517: The early 1990s, specifically from April 1990 to April 1992. Canada's recession began about four months before that of the US, and was deeper, likely because of higher inflationary pressures in Canada, which prompted the Bank of Canada to raise interest rates to levels 5 to 6 percentage points higher than the corresponding rates in the US by early 1990. Canada's economy began to weaken in the second quarter of 1989 as sharp cutbacks in manufacturing output reduced real GDP growth to about 0.3% for each of
7840-481: The economy to health. Bush initially enjoyed great popularity after the successful Persian Gulf War , but this soon wore off as the recession worsened; his 1992 re-election bid was particularly hampered by his 1990 decision to renege on his " Read my lips: no new taxes " pledge made during his first campaign in 1988. Meanwhile, Mulroney became deeply unpopular in Canada after two failed constitutional reform attempts (the Meech Lake Accord and Charlottetown Accord ) and
7952-442: The election of William Hague . Major remained in the House of Commons as a backbencher, regularly attending and contributing in debates, until he stood down at the 2001 election to focus on writing and his business, sporting and charity work. Since leaving office, Major has tended to maintain a low profile in the media, occasionally making political interventions. He supported the unsuccessful Britain Stronger in Europe campaign for
8064-559: The extensive ceremonial aspects of the role. Amongst Major's first acts as Foreign Secretary was to cancel the sale of Hawk aircraft to Iraq , over concerns they would be used for internal repression. He represented Britain at the Paris Peace Conference to determine the future of Cambodia . Major also met with US secretary of state James Baker , with whom he primarily discussed the issue of Vietnamese boat people , and with Qian Qichen , Foreign Minister of China, becoming
8176-470: The federal government's national debt would have increased a significant amount. A third, less important factor in Canada's recession was the weakness of the US economy at the time, which was calculated to have had the effect of reducing Canada's economic growth by .6, 2.2 and 1.1 percentage points in 1990, 1991 and 1992. An additional reason for the recession, especially it being deeper and longer in Canada than in
8288-418: The first quarter of 1991. Both real GDP and employment bounced back in the second quarter of 1991, but then for a full year there was virtually no change in real GDP while employment levels continued to drop as most industries continued to cut output. Only in April 1992 did total employment begin to increase again with real GDP growing 0.4% thereby ending the recession. Technically, the moderate expansion in
8400-434: The first round. Major was at home in Huntingdon recovering from a pre-arranged wisdom tooth operation during the first leadership ballot, which Thatcher won but not by the required threshold, necessitating a second round. Following discussions with her cabinet, in which many stated that though supporting her they doubted she could win, Thatcher withdrew from the contest and announced that she would resign as prime minister once
8512-561: The first senior Western politician to meet with a Chinese official since the violent crackdown of pro-democracy protesters in Tiananmen Square the previous month. Discussions focused primarily on the future of Hong Kong , which Britain was scheduled to hand over to China in 1997. Major spent most of a summer holiday that year in Spain conducting extensive background reading on foreign affairs and British foreign policy. Upon his return to
8624-635: The future funding of the NHS , against the background of an NHS strike in February 1988 over pay, resulting in the 'Working for Patients' white paper and subsequent National Health Service and Community Care Act 1990 . Major also insisted in discussions with Thatcher that government assistance should be provided to support the sale of Short Brothers to Bombardier , an aerospace company and major employer in Northern Ireland which might otherwise have collapsed. In 1987–1988, it became clear that Major had become
8736-452: The garden ornaments business; this had been sold in 1959, enabling the family to move to a larger residence at 80 Burton Road, Brixton. Major's father died on 27 March 1962. John left the ornaments business the following year to care for his ill mother, though when she got better he was unable to find a new job and was unemployed for much of the latter half of 1962, a situation he says was "degrading". After Major became prime minister, it
8848-485: The issue with Margaret Thatcher and an increase in the payments was approved. Following the 1987 general election , in which Major retained his seat with an increased majority, he was promoted to the Cabinet as Chief Secretary to the Treasury , making him the first MP of the 1979 intake to reach the Cabinet. The then-Chancellor Nigel Lawson generally made significant decisions with little input from others, and Major
8960-424: The last three quarters of the year. Despite GDP growth being minimal, employment growth Canada-wide remained moderate throughout 1989 (although Ontario had a decline in employment in 1989) and there was a solid growth spurt (0.8%) in the first quarter of 1990. In April 1990, economic activity and employment both began substantial declines with the largest drops in real GDP, 1.2%, and employment, 1.1%, occurring in
9072-625: The loss of all the party's seats in Wales and Scotland. On the morning of 2 May 1997, on his final departure from Downing Street to offer his resignation to the Queen , Major announced his intention to step down as leader of the Conservative Party, stating in his exit speech that "when the curtain falls, it's time to get off the stage". He was succeeded as prime minister by Tony Blair . Speculation over Major's leadership had continued since his re-election in 1995, and intensified as it became increasingly likely that
9184-496: The loss of consumer and business confidence as a result of the 1990 oil price shock , the end of the Cold War and the subsequent decrease in defense spending, the savings and loan crisis and a slump in office construction resulting from overbuilding during the 1980s. The US economy returned to 1980s level growth by 1993 and global GDP growth by 1994. Canada's economy is considered to have been in recession for two full years in
9296-533: The new European Bank for Reconstruction and Development (EBRD) located in London. By early 1990, Major had become convinced that the best way to combat inflation and restore macroeconomic stability would be if the British pound were to join the European Exchange Rate Mechanism (ERM), and he and Douglas Hurd (Major's successor as Foreign Secretary) set about trying to convince a reluctant Thatcher to join it. The move
9408-548: The now slightly enlarged seat of Huntingdon at the 1983 general election . Shortly thereafter he and Norma moved to a larger house (Finings) in Great Stukeley ; Major generally spent his weekends there, and weekdays at a rented flat in Durand Gardens, Stockwell . Major was invited to join the prestigious 'Blue Chip' group of rising stars in the Conservative Party, and he was promoted to Treasury Whip in October 1984. It
9520-501: The office of Shadow Secretary of State for Scotland was left vacant until after the 2001 general election as the party no longer had any Scottish MPs. Major's resignation as Conservative leader formally took effect on 19 June 1997 after the election of William Hague . Major's Resignation Honours were announced on 1 August 1997. He remained active in Parliament, regularly attending and contributing in debates. He stood down from
9632-603: The opposition Liberal Party 's campaign during the 1993 election , designed to underscore alleged mismanagement of the national economy by the incumbent Labor Party . Unlike the opposition parties in North America, however, the Liberal Party failed to enter government (at least, not until the 1996 election ) In neighbouring New Zealand , the recession came after the re-election of the reformist Lange Labour government. The impact of economic reforms (known as Rogernomics ) in
9744-616: The other pupils, Major was something of a loner and consistently under-performed except in sports, especially cricket , coming to see the school as "a penance to be endured". Major left school just before his 16th birthday in 1959 with just three O-level passes in History, English Language and English Literature, to his parents' disappointment. Major's interest in politics stems from this period, and he avidly kept up with current affairs by reading newspapers on his commutes from Brixton to Wimbledon. In 1956 Major met local MP Marcus Lipton at
9856-476: The party, encouraged by his political allies, to have him stay on as leader until the autumn. Lord Cranborne , his chief of staff during the election, and the chief whip, Alastair Goodlad , both pleaded with him to stay on: they argued that remaining as leader for a few months would give the party time to come to terms with the scale of defeat before electing a successor. Major refused, saying: "It would be terrible, because I would be presiding with no authority over
9968-462: The percentage of the working age population (15-64) being employed continued to decline until the following month. The slow growth in employment following the end of the GDP contraction in April 1992 right through until 1995, is referred to as a "jobless recovery". A key cause of the recession in Canada was inflation and Bank of Canada's resulting monetary policy. The inflation rate in Canada had remained in
10080-854: The private sector's foreign currency denominated debt burden. At the same time authorities tightened bank supervision and prudential regulation, lending dropped by 25% and asset prices halved. Combined with raising savings rate and worldwide economic troubles, this led to a sharp drop of aggregate demand and a wave of bankruptcies. Credit losses mounted and a banking crisis inevitability followed. The number of companies went down by 15%, real GDP contracted about 14% and unemployment rose from 3% to nearly 20% in four years. Recovery has been based on exports, after currency devaluation of 40% and reviving world economy share of exports as percentage of GDP has risen from 20% to 45%, and Finland has been running consistent current account surpluses. Despite this impressive performance and strong growth mass unemployment has remained
10192-402: The professional agent Marion Standing. Major stood as a Councillor in the 1964 Lambeth London Borough Council election for Larkhall ward at the age of 21 in 1964, losing to Labour. He also assisted local Conservative candidates Kenneth Payne in the 1964 general election and Piers Dixon in the 1966 general election . Another formative influence on Major in this period was Jean Kierans,
10304-504: The property asset bubble. The decade following is known as The Lost Decade . The Progressive Conservative government of Brian Mulroney in Canada and the successful presidential election campaign of George H. W. Bush in the United States may have been aided by growth in 1988. However, neither leader could hold on to power through the last part of the recession, being challenged by political opponents running on pledges to restore
10416-471: The railways and coal industry, and played a pivotal role in creating peace in Northern Ireland . Two years into his premiership , Major went on to lead the Conservatives to a fourth consecutive electoral victory , winning more than 14 million votes, which remains the highest number ever won by a political party in Britain. In 1995, Major resigned as party leader, amid internal divisions over UK membership of
10528-515: The recession led to deep policy divisions between the Prime Minister, David Lange , and the Minister of Finance, Roger Douglas . In response to the recession, Douglas wanted to increase the pace of reform, whereas Lange sought to prevent further reform. Douglas resigned from Cabinet in 1988, but was re-appointed to Cabinet in 1989, prompting Lange to resign. Labour lost the 1990 general elections by
10640-524: The removal of certain protective tariffs through the 1989 Canada-US Free Trade Agreement, this caused substantial job losses in the manufacturing sector with a significant number of manufacturers closing down or moving to the US, Mexico or the Caribbean. The recession severely depressed job markets throughout the country unemployment rising from a low of 7.2% in October 1989, to a high of 12.1% in November 1992; it would take 10 years before unemployment recovered
10752-452: The replacement of long-serving Margaret Thatcher with John Major as prime minister in November 1990 helped fend off a strong challenge from Neil Kinnock and Labour . Japan had loose monetary policy in the decades preceding, causing the Japanese asset price bubble . The Bank of Japan raised interest rates to cause an inverted yield curve and reduced M2 money supply increases to tame
10864-474: The response to protests at RAF Molesworth , which lay in his constituency; various peace groups were opposed to the siting of cruise missiles at the base and had established a permanent 'peace camp' there. Major addressed public meetings opposed to the protesters, organised by parish councillors, and also met Bill Westwood and separately Michael Heseltine to discuss the issue. The protesters were evicted in February 1984. Major comfortably won re-election to
10976-713: The role of an elder statesman. Having left school just before his sixteenth birthday, Major worked as an insurance clerk and joined the Young Conservatives in 1959, and soon became a highly active member. He was elected to Lambeth London Borough Council in 1968 and a decade later to parliament, being elected as the Conservative MP for Huntingdonshire at the 1979 general election . Major held several junior government positions under Thatcher from 1984 to 1987, including parliamentary private secretary and assistant whip . He served in Thatcher's third ministry as Chief Secretary to
11088-468: The second quarter of 1991 would qualify the contractions from April 1990 to March 1991 and July 1991 to April 1992 as two separate recessions, but the 1991 second quarter expansion was likely the result of pent up demand from the Gulf War and the introduction of the federal Goods and Services Tax early in the year severely suppressing consumer spending in the first quarter. Overall real GDP growth for Canada
11200-459: The sudden resignation of Nigel Lawson , who had fallen out with Thatcher over what he saw as her excessive reliance on the advice of her Economic Adviser Alan Walters . The appointment meant that, despite only being in the Cabinet for a little over two years, Major had gone from the most junior position in the Cabinet to holding two of the Great Offices of State . Major made tackling inflation
11312-407: The time of Major's appointment, Labour's lead had shrunk to 14%. However, by 1991, the Conservatives had narrowly retaken Labour in the polls. Major's first ministry was dominated by the early 1990s recession which was believed to be caused by high interest rates, falling house prices and an overvalued exchange rate. The high interest rates led to more saving, less spending and less investment in
11424-650: The year (the Generalized Social Contribution rate was increased by 1.3 points on 1 July 1993). Sweden experienced a financial crisis during the early 1990's. Despite several major economies showing quarterly detraction during 1989, the British economy continued to grow until the third quarter of 1990. Economic growth was not re-established until early 1993, with the end of the recession being officially declared on 26 April that year. The Conservative government which had been in power continuously since 1979 managed to achieve re-election in April 1992 after
11536-412: Was 2.3% for 1989, 0.16% for 1990, -2.09% for 1991, 0.90% for 1992, before increasing to 2.66% in 1993. The unemployment rate rose from 7.5% in 1989, to 10.3% in 1990, 10.3% in 1991, 11.2% in 1992, and 11.4% in 1993 before dropping to 10.3% in 1994. In fact, due to unemployment remaining at higher levels until early 1994, some sources assert the early 1990s recession lasted until February 1994 in Canada, as
11648-531: Was a separate GO for Merseyside ), South East , South West , West Midlands and Yorkshire and the Humber regions. The Offices represented thirteen Whitehall departments , and were involved in regenerating communities, fighting crime, tackling housing needs, improving public health, raising standards in education and skills, tackling countryside issues and reducing unemployment. By the time of their abolition, there were twelve Whitehall Departments represented in
11760-477: Was born on 29 March 1943 at St Helier Hospital and Queen Mary's Hospital for Children in St Helier , Surrey, to Gwen Major ( née Coates, 1905–1970) and former music hall performer Tom Major-Ball (1879–1962), who was 63 years old when Major was born. He was christened "John Roy Major" but only "John Major" was recorded on his birth certificate ; he used his middle name until the early 1980s. His birth had been
11872-477: Was generally happy, and he enjoyed reading, sports (especially cricket and football ) and keeping pets, such as his rabbits. In 1954 John passed the 11+ exam, enabling him to go to Rutlish School , a grammar school in Merton Park , though to John's chagrin his father insisted that he register as 'John Major-Ball'. The family's fortunes took a turn for the worse, with his father's health deteriorating, and
11984-527: Was held on the afternoon of 27 November; although Major obtained 185 votes, 2 votes short of an overall majority, he polled far enough ahead of both Hurd and Heseltine to secure their immediate withdrawal. With no remaining challengers, Major was formally named Leader of the Conservative Party that evening and was duly appointed prime minister the following day. At 47, he was the youngest prime minister since Lord Rosebery some 95 years earlier. Major became prime minister on 28 November 1990 when he accepted
12096-469: Was later revealed (in 2002) that during this period Major had conducted an affair with Edwina Currie , a Conservative backbencher and later Parliamentary Under-Secretary of State, Health and Social Security ; the affair ended in 1988. Major narrowly avoided the IRA 's Brighton hotel bombing in October 1984, having left the hotel only a few hours before the bomb went off. Also in this period, Major stood in for
12208-612: Was misreported that his failure to get a job as a bus conductor resulted from his failing to pass a maths test; he had in fact passed all of the necessary tests but had been passed over owing to his height. In the meantime he studied for a qualification in banking via correspondence course . Eventually in December 1962 he found a job working at the London Electricity Board (LEB) in Elephant and Castle . In 1959, Major had joined
12320-455: Was put in charge of agreeing departmental budgets with the Secretaries of State . These discussions went well, and for the first time in several years budgets were agreed without recourse to the external adjudication of the so-called ' Star Chamber '. Major successfully concluded a second round of such spending reviews in July 1988. Whilst Chief Secretary Major took part in discussions over
12432-548: Was seen as being the most likely to win-over the increasingly large numbers of upwardly mobile London over-spill families living in the area, and he was helped to familiarise himself with the area by local MP David Renton . In 1977 the Major family purchased a house at De Vere Close in the village of Hemingford Grey . Major took on a less demanding job at Standard Chartered, and started working part-time in 1978 so that he could devote more time to his constituency duties. Major won
12544-597: Was supported by the Bank of England , the Treasury, most of the Cabinet, the Labour Party, several major business associations and much of the press. With the ' Lawson Boom ' showing signs of running out of steam, exacerbated by rising oil prices following Iraq's invasion of Kuwait in August 1990, there were fears of a potential recession and pressure to cut interest rates. Thatcher finally agreed on 4 October, and Britain's entry into
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