MacDonald also struggled with relationships with the left-wing party members, causing increased tension. MacDonald was forced to pursue moderate policies, to keep Liberal support, in a minority government, and make the party appear respectable, proving Labour capabilities in government. This involved going completely against the wishes of left-wing members who wanted radical reform. He did not give them a fair representation in the Cabinet, instead choosing members from more moderate, Liberal and Conservative backgrounds. This gave policy making a conservative line, and meant that left-wing members felt offended and under represented. This resulted in bitterness within the party and as Labour party members fought other Labour party members over internal matters, they found it impossible to unite about national issues. In trying to unite the party MacDonald had less time and energy to put into national issues, and as the party became more disunited it became less and less effective, it also caused people to doubt Labour’s capabilities in government.
Many of Labour’s problems, it could be argued, were as a result of MacDonald’s incompetence and lack of motivation. Initially he could have pacified the left-wing members by giving them a fair representation in the cabinet, this could be perceived as an example of his incompetence. It could also be argued that this was a step he took in Labour’s best interests, to try to remain in government, by choosing moderate policy-makers. In several situations, he was forced to make unpopular decisions in which to do what was most sensible nationally, did not please members of his own party or the trade unionists, this was mainly as a result of the minority government situation.
Some of the decisions MacDonald made were not wise, and upset the electorate, and other parties, for no particular reason. For example, the Campbell Case, in which, out of stubbornness, MacDonald refused to compromise to please the Conservatives and Liberals, losing support from the electorate, and causing increased allegations of the Labour-Communist link. Some historians would argue that by this stage he had lost all motivation to continue, he was tired with the continual struggle of trying to unite his own party, and deal with governmental issues, and wanted to leave office. This would explain his irrational decisions, although, they could just have been as a result of inexperience. MacDonald made a few serious mistakes and these were very damaging for the Labour party, there are several proposed theories as to why he made them, but it is possible that the pressure had become too much, and he wanted to leave power.
It is important to remember that Labour were not completely ineffective as a party, they did have some successes both domestically and internationally. Generally, they were not particularly radical, and achieved little more than previous Governments. Domestically, they made a few changes, such as Wheatley’s Housing Act, in which grants were given to local authorities to build council houses, (to relieve the housing shortages,) and the old age pension and unemployment benefits were increased. Also, more state education was provided. Although these things were good, they were undermined by the problems in the country. People expected Labour to be radically socialist, and make big changes, both members of the electorate, and Labour party members, were disappointed by how little was actually achieved. However, some historians would argue that since Labour needed to gain an image of respectability, more radical changes were impossible. Labour did have some successes in domestic policy making, this would suggest that Labour’s downfall was not entirely their fault.
Internationally, Labour also had many successes, however, at the time, they were largely considered bad ideas, such as restoring diplomatic links with Germany and Russia. For example, MacDonald wanted to give a loan to the Soviet Union. The short-term benefits were not great; there was merely a vague policy of compensation to British investors who had lost money in the Russian Revolution. However, the main reasons for this policy, were to restore diplomatic links with Russia, which was important for European security. Labour’s opponents carefully manipulated these policies at a time of great anti-Communism, to raise fears that the Labour Government supported Communism. The long-term successes behind this, and other policies, were not recognised, or, like the Geneva Protocol, were not fulfilled due to Labour’s short term in office. MacDonald enjoyed foreign affairs work and made excellent use of the situations Labour found itself in. However, he was not sensitive to political situations, and consequently, his opponents used his policies to cause people to doubt Labour. As a minority government Labour was easily undermined by public opinion against its foreign policies.
Labour had come to office in 1923, as a minority government. The very nature of a minority government caused it many problems, as it made it very weak. Although in the 1923 election, the Conservatives were the largest party, Baldwin had decided to dissolve parliament in attempt to gain time to deal with problems within the party, such as the disagreement about protective tariffs. To form a government, Labour was forced to rely on the support of the Liberals, which put it in a very vulnerable position. In this political atmosphere, it could be argued that this period could be nothing more than an apprenticeship in power which would be very unsatisfactory to both Labour and the electorate. The minority government limited Labour’s viable options considerably, it was forced to pursue moderate policies in order to remain in government, despite the upset this caused the more radical members of the party and the tension it caused.
As a consequence of the weaknesses of being a minority Government, Labour was very vulnerable, and was easily undermined, it lacked in a stable, experienced political base. The Campbell Case, in which the government withdrew its case against Campbell, the author of a Communist magazine, despite Conservative and Labour opposition, was one such example. Labour in its very nature as a socialist party was in a difficult position at this time of great anti-Communist fear. Through the Campbell case, Labour became increasingly associated with Communism. Respected leaders such as Winston Churchill incited anti-Labour opinion, as they openly expressed concerns about Labour’s supposed Communist links. The most damaging event was during the following election when the Ziminoviev letter, (which was probably a forgery,) containing Communist incitements to sedition, was released. This increased fear of Communism, and of Labour’s links with it. Although this was used by Labour as the supposed reason of their failure in the election, by this time, Labour would have probably lost the election anyway, as it was very unpopular. It had little importance, except as an easy scapegoat for Labour. As a socialist party, Labour was associated with Communism, and several events cultured this image, at a time of great fear of Communism, this lost Labour a lot of support.
As a minority government, Labour was weak, and so the many events, which led to increased association with Communism, were very damaging, undermining Labour’s power and support. Labour had been unpopular from the very start, and this forced to take a moderate line in policies. This divided the Labour party. The struggle of trying to bring the party together, and keep the support of the trade unions, combined with the difficult domestic problems, would have been almost impossible for any political leader. Perhaps a stronger leader than MacDonald, faced with fewer problems within the party, might have just managed to survive this time by minimising fear of Communism and dealing more sensitively and diplomatically with events such as the Campbell case. However, MacDonald lacked the necessary experience, skills and strength as a leader, the pressures put on him were immense, he made several costly mistakes, which is not surprising considering the pressure he was under.
In some respects, it could be argued that Labour brought about its own downfall, certainly, MacDonald could have dealt better with the situations he found himself in. However, as a minority government, in an unfortunate situation from the very start they were destined to fall, and it is unlikely that attempts by MacDonald would have done anything more than delay when the party fell. It was little more than an apprenticeship to power, and the Conservatives knew that Labour were not a great threat, and thus, tactically allowed them to have control, knowing that they would fall.
