1 The Affluent Society Flashcards
Why was Churchill deemed not suitable to be a post-war leader in his 2nd term (1951-55)?
- He was old and frail (suffered stroke in 1953 which was kept secret)
- Saw himself an international statesman, rather than domestic politician
- Saw himself above party politics
Who was acting prime minister during Churchills regular absence?
Anthony Eden - dubbed to be future PM and was Foreign Secretary in the war
Who were the other 2 key ministers under Churchill?
Rab Butler (Chancellor) - was not an economist but tried to avoid any social/industrial conflcit
Harold MacMillan - Minister for Housing
Lots of tension between the 3 key ministers and Eden became impatient waiting for Churchill to step down
How much did the conservative majority increase in Eden’s 1955 General Election?
From 17 seats to 60 - there were initial high hopes in the conservative party
Who became Chancellor and Foreign Secretary under Eden?
‘Rab’ Butler (Chancellor) - played a key role in reorganising the tories for 1951 return to power. Architect of 1944 Education act
Harold MacMillan (Foreign Secretary) - described as a one-nation conservative, raised in the northeast
What 4 key things caused Eden’s downfall?
- Lack of knowledge on economic issues
- Too passive with Trade Unions
- Tried to move MacMillan from Foreign Office to Treasury - Macmillan was able to delay as he did not want to move
- Military Action in Suez Crisis 1956
How damaging was the Suez Crisis for Eden and his reputation?
- Came under scrutiny in Parliament by Labour, and in the national press - accused of lying to House of Commons
- Rebellion in the Tory party by nearly 40 MP’s - colonial minister Anthony Nutting resigned from the cabinet
- Pressure from the US exposed Britain’s financial weakness
Eden retired on ill health in 1957
Why did the Conservatives prefer Macmillan rather than Butler for PM?
- Butler introduced tax cuts shortly before the 1955 election, which then had to be reversed due to the economy overheating
- Macmillan had a good reputation
- Wanted to be firm with the Nazi’s in 1930s
- had economic prowess as he’d dealt with the Great Depression
What was the tenure of ‘SuperMac’ like?
- Post-war economic boom continued
- 1959 General election majority of 100 seats
Why did the conservative government accept previous labour policies?
- People far more inclined to state intervention post-war
- The NHS had already assumed iconic status and was hugely successful
- Tories genuinely convinced by the success of many Labour welfare policies and schemes
What were Tory policies on Housing (1951-64)?
- 1951 Manifesto to build 300k houses a year
Aim to replace war losses and clear ‘squalor’ of slum housing, overseen by Macmillan as Housing Minister
What were Tory policies on Education (1951-64)?
- Continued the Tripartite system of Butler Act 1944
- Grammars (intellectually gifted)
- Technical (practical skills)
- Secondary Modern (basic education to the masses)
- Children took an 11+ exam to determine which they attended
- Financial restraints meant Technical schools were limited under Churchill, however Eden promoted them.
Many began to deem this system unfair by the 1960s
What Social Reforms took place under the Tories? (1951-64)
Under Macmillan’s premiership
- Clean Air Act 1956 - aimed to prevent smog
- Housing and Factory Acts - aimed to improve living and working conditions
- Homicide act 1957 - restricted when the death penalty could be imposed
- In 1957, Wolfenden Commission recommended that homosexuality should no longer be a criminal act
Butler as Home sec (1957-62) was more liberal than many other Tories, hence such progressive policies
These issues would return in the 1960s.
Why did many activists believe Labour may return to power quickly after the 1951 Election?
- They only narrowly lost - gaining 14M votes - larger than any previous labour victories
In reality, what were the problems with the Labour Party in the 1950s?
- Whilst Atlee remained leader until 1955, many of the great wartime generation were ageing
- Growing split in the party, both ideologies and personalities
Who became Labour leader after Atlee stepped down?
- Hugh Gaitskill defeated Aneurin ‘Nye’ Bevan in 1955
Gaitskill was Chancellor from 1950-51 and introduced prescription charges as an option to cutting welfare spending
Bevan had been minister of health in the Atlee government and was a hero of the labour left.
He was the architect of the NHS and resigned from government in 1951 following the introduction of prescription charges
What did the Bevanites want?
They wanted Labour to be more socialist.
- Bevan opposed unilateral nuclear disarmament
- Supported Trade Union leaders, such as Frank Cousins - head of TGWU - who bitterly opposed Gaitskells leadership
Why were Labour optimistic entering the 1959 election?
Gaitskill was an effective campaigner, promoting moderate policies they hoped to be popular with voters
What suggestion, at the 1959 Labour conference in Blackpool, did Gaitskill propose, (and eventually retract following backlash from the left of the party)?
He suggested abolishing Clause IV of the party constitution, which was the commitment to nationalisation.
- Gaitskill realised the backlash from Bevanites and TU leaders would be fierce, and didn’t even put it to a vote
What is nationalisation?
State ownership of key industries
- The idea of the state ‘commanding the heights of the economy’ had been a key principle of the Labour Party since it’s foundation.
What was the ‘Night of the Long Knives’ ?
July 1962, Macmillan reshuffled his cabinet, sacking one third of his ministers.
- It’s intention to rejuvenate only made the cabinet weaker, and made Macmillan look clumsy.
What other factors jeopardised Macmillan’s leadership, in the lead up to his resignation in 1963?
- His image as an aristocrat became increasingly out of touch for the people of Britain
- Series of Spy Scandals - 1962 John Vassell (civil servant) had been blackmailed on the basis of his homosexuality, by the Soviet Union
- John Profumo (Secretary of State for War) had an affair with Christine Keeler, who also slept with Soviet Spy Ivanov. Profumo lied about his actions in an inquiry headed by a High Court Judge
- Major Abdominal Operation in autumn of 1963, resigning in the October.
What 3 episodes shaped the Britain of 1951?
- The Great Depression of the 1930s
- The Second World War
- Rebuilding Post War under Atlee (1945-51)
The lessons learnt by the British Public in each of these helped shape the Post-War Consensus
What were the signs of post-war economic recovery (1951-64) ?
- Food rationing - ended July 1954. No more wartime austerity
- Post-War baby boom - 5% population growth (2M) from 1951-61
- Full employment - achieved in 1955, with less than 1% of workforce (200,000) unemployed
- Higher Imports - Imported 29% more goods by the late 1950s than in 1951
- Higher Incomes - Britain had higher income per capita than any major country, apart from the US
- Tax Cuts - ‘give-away’ budget cut £134M for the middle classes leading up to 1955 election
- Growth in service sector - nearly 5M by 1960, equalling those in heavy industry
What was one of the main economic challenges of the conservative government?
- How to maintain growth and employment whilst keeping prices steady (inflation)
Trade Union demands over wages, such as those made by coal workers
What was the name given to government controls used when the economy was overheating?
‘Stop-go’ economics
What was the problem with higher salaries? (BoP)
There was a larger internal consumer demand = more imports
However, did not encourage manufacturers to increase their exports
This led to a BoP deficit
Pressure from the US over the Suez crisis exposed Britain’s financial weakness causing what?
A run on the pound
a rapid fall in the value of the pound in international currency markets, particularly in relation to US$
What did ‘monetarists’, such as Peter Thorneycroft (Chancellor) believe?
Limit wage increases to cut the money supply
Why did ‘one nation conservatives’ oppose monetarism?
Cabinet minister such as Ian McLeod believed the
policy would lead to increased unemployment and cutbacks in housing
Why did Thorneycroft and his junior minsters, Enoch Powell and Nigel Birch resign in 1958?
Macmillan overuled Thorneycrofts plans for drastic spending cuts.
The crisis and divisions in the cabinet signalled the problems with ‘stop-go’ economics
Macmillan shrugged off the resignations as ‘a little local difficulty’
How great was the economic recovery of 1959? (the key factor for Macmillans re-election)
- The Sterling regained its value against the dollar
- April 1959 provided tax cuts of £370M (even more than Butlers ‘give-away’ in 1955)
- Macmillan re-elected in October 1959
What ‘stop-go’ measures were introduced in 1961, amidst worries about the economy overheating?
- ‘Pay-pause’ to hold down wage inflation
- asked for a loan off the IMF
Familiar economic problems with the same solutions
What policy did Macmillan reverse in 1961, due to failure of economic modernisation?
- Application to join the EEC
Economic growth in europe, particularly West Germany was leaving Britain behind.
Trade with the Empire and Commonwealth was not sufficient
What 2 groups were established by Selwyn Lloyd (Chancellor) to aid economic stability?
- National Economic Development Council (NEDC)
Consisted of gov’t representatives, academics, employers and trade unionists, for long term planning
-National Incomes Commission (NIC)
Responsible for monitoring wages and prices
What was the Beeching Report of 1963?
Review into cutting public expenditure
-Proposed closure of 30% of all railways, provoking public outrage
What were the impacts of the report?
Fundamental social change
- many rural areas became more isolated
The government was no longer riding a wave of economic prosperity
What were the results of new Chancellor Reginald Maudling’s ‘go’ phase?
Lowered the bank base rate to encourage consumer spending
-Growth rate rose from 4% to 6% from 1963-64
-Exports rose just over 10% from 1961-64, imports remained 20% higher
What event in 1951 inspired many to social and technological progress, in a post-war world?
The Festival of Britain
-marked Britain’s recovery from the War
-looked forward to the future, celebrating new design, culture and industry
Why was there a desperate need for housing stock in 1951
replace war damages + deal with 10 years of neglected buildings
-Pre war slums were cleared, such as Kirkby on Merseyside
What was one social problem with slum clearance?
Traditional communities broken up
- people were rehoused in ‘new towns’, planned by Labour in the 1940s
-intensified by greater car ownership levels
What other signs of rising living standards were there?
- Mens weekly wages from £8.30 in 1951 to £15.35 in 1961
- Farmers benefitted from state subsidies - especially prosperous after end of rationing in 1954
- Home Ownership increased due to cheap mortgages, however still outnumbered by council house occupants
