1.5 Economic Dominance 1951-64

Question 1

What is the Balance of Trade?

Answer 1

It’s the difference between what a country buys (imports) and what it sells (exports). If imports are higher than exports, it’s a deficit; if exports exceed imports, it’s a surplus.

Question 2

What does the Balance of Payments include?

Answer 2

It accounts for money flowing into and out of a country, covering imports/exports, loans, foreign aid, and financial transfers.

Question 3

What issues did the ‘Stop’ phase address?

Answer 3

It aimed to tackle an overheating economy, high inflation, and a balance of payments deficit.

Question 4

What were the causes and solutions during the ‘Stop’ phase?

Answer 4

Causes were rising wages faster than production; solutions included increased interest rates, frozen wages, and tax rises.

Question 5

What issues and solutions were seen in the ‘Go’ phase?

Answer 5

There was a continued fall in consumer demand; solutions involved cutting interest rates, ending wage freezes, and tax cuts.

Question 6

What characterized the economy under Churchill’s Chancellor, R.A. Butler?

Answer 6

There was near full employment, low inflation, tax cuts, and rising prosperity.

Question 7

What were the economic achievements under Eden’s Chancellor, Heathcoat-Amory?

Answer 7

There were significant tax cuts, low bank rates benefiting mortgage holders, and real economic growth.

Question 8

How did Conservative Prime Ministers in the 50s handle trade unions?

Answer 8

They prioritised good relations to minimize strikes and financial losses, appointing conciliatory figures to work with unions.