18. Economic Issues BRT Flashcards by rhiannon Pearce

Mobilisation of resources during wartime: what areas did the comprehensive gov controls that were introduced at start of war cover

Food supplies, transport and the labour force

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Extension of gov control: what did the gov pass in 1939 as soon as war broke out

Energy powers act 1939

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Extension of gov control: what was gov granted authority to do until emergency powers act

Make regulations covering any aspect of life necessary to secure defence of the realm

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Extension of gov control: which ministries were set up

ministry of aircraft production
ministry of labour
ministry of production

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Extension of gov control: how did cabinet committees coordinate work of separate ministries

Ministry of production coordinated on supply side and treasury being responsible for finance

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Extension of gov control: how gov control extended over industry directily

Royal ordnance factories employed 300,000 workers

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Extension of gov control: why were non essential industries run down

So their machinery and labour could be diverted to war Work

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Extension of gov control: why were new production methods devised

Raise output and save labour

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Extension of gov control: why did gov encourage greater use of science

Improving efficiency of economy and for developing new techniques/warfare

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Bevin and the organisation of war Work: why was Bevin the ideal choice as minister of labour

He had a long career in TU affairs before the war

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Bevin and the organisation of war Work: why did Bevin have to do with the millions unemployed in 1940

Get them back to work and mobilise the workforce efficiently

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Bevin and the organisation of war Work: what kind of conscription did Bevin introduce

Industrial conscription for men and later women too

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Bevin and the organisation of war Work: who were conscripted to Work in coal mines from late 1943

Young men/bevins boys conscripted to work in coal mines

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Bevin and the organisation of war Work: which industries were women encouraged to work in

Munitions, engineering and shipbuilding

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Bevin and the organisation of war Work: which problem did the demands of war Work solved

Unemployment

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Bevin and the organisation of war Work: what did the total workforce raise by

2 million

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Bevin and the organisation of war Work: what did Bevin use to force factories to improve conditions

Essential work orders

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Bevin and the organisation of war Work: how were factory conditions improved

Works canteens, washrooms and medical centres

Wages improved, TU bargaining continued

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Bevin and the organisation of war Work: how did Bevin maintain workers morale

Constantly toured factories and delivered 300 speeches, encouraged lunchtime entertainment

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Bevin and the organisation of war Work: what was broadcast on the bbc from 1941

Workers playtime

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Bevin and the organisation of war Work: what effect did bevins contribution to the war effort have

Did a lot to change perceptions and to convince people that labour politicians could be trusted with power

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Control of food supplies: why did clothes food and fuel have to be rationed

Imports of food had to be reduced following loss of shipping due to German u boat attacks

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Control of food supplies: who was in charge of devising a fair rationing policy and advising public on how to make the best of it

Ministry of Food under Lord Woolton

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Control of food supplies: how was agriculture changed to increase productivity

Millions of acres of land ploughed up, production shifted from meat to cereals and greater use of tractors and fertilisers

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Control of food supplies: which campaign led to a huge rise in home grown veg

Dig for Victory

The post war economic adjustment: rationing: what was austerity

Living standards held down so that production could go into exports to earn mucb needed dollars

The post war economic adjustment: rationing: why did labour maintain and even intensify wartime rationing

To limit imports and divert resources into exports

The post war economic adjustment: rationing: why were 1948 rations below wartime average

Financial and economic crisis of 1947

The post war economic adjustment: rationing; which two foods were rationed between 1946-48 which hadn’t been in the war

Bread and potatoes

The post war economic adjustment: rationing: when did it end completely

Not until 1954

The post war economic adjustment: rebuilding exports: what was the export drive the twin of

Austerity

The post war economic adjustment: rebuilding exports: what could exports especially to America earn

The dollars needed to buy essential imports of food and raw materials

The post war economic adjustment: rebuilding exports: why did imports have to be reduced

To avoid paying for goods in dollars

The post war economic adjustment: peacetime industrial production: why did industries need to switch quickly from wartime to peacetime production

If export drive was to be met

The post war economic adjustment: peacetime industrial production: why were gov controls maintained

In order to allocate materials and give priority for exports

The post war economic adjustment: peacetime industrial production: why did labour have a regional policy directing and encouraging new factories to open in old depressed areas

Economy needed to work at full capacity

The post war economic adjustment: peacetime industrial production: what were wartime controls maintain on

Prices and wages

The post war economic adjustment: economic planning and employment: why did labour believe in state planning

To support the export drive and maintain full employment

The post war economic adjustment: economic planning and employment: how did labour plan to support export drive and maintain full employment in long term

Through nationalisation

The post war economic adjustment: economic planning and employment: how did labour plan to support export drive and maintain full employment in short term

Gov used rationing system to control use of which materials and labour could be put with priority for exports

The post war economic adjustment: economic planning and employment: how did the gov stimulate economy, avoid inflation and unemployment

Taxation, interest rates and the budget

The post war economic adjustment: economic planning and employment: how was agriculture helped

By subsidies and guaranteed prices

The post war economic adjustment: building a new international economic system: who did labour cooperate with to build a new world economic order

The United States

The post war economic adjustment: building a new international economic system: what was the new world economic order based on

The world bank and the International Monetary Fund

The post war economic adjustment: building a new international economic system: how did the building of a new world order begin

With a meeting of economic experts to agree on a general agreement on tariffs and trade

The post war economic adjustment: building a new international economic system: what did the new world economic order aim to do

Regulate world trade in order to avoid another deep deperession like that of 1930s

labours post war balance of payments: how much debt did Britain have

£4198 million

labours post war balance of payments: what was the balance of payments crisis from 1945-1946

Britain spent £750 million more abroad that it received

labours post war balance of payments: what was the drop in the export of manufactured goods

60%

labours post war balance of payments: what was the reduction in invisible exports between 1938-1946

1938: £248 million 1946: £120 million

labours post war balance of payments: in which areas were costs rapidly increasing

in maintaining the military overseas

labours post war balance of payments: what did Keynes do to cope with the crisis

negotiated loans from the USA and Canada totalling more than $5000 million

labours post war balance of payments: what conditions did the loans come with

- Britain had to end its policy of giving preference to trade with countries in the British empire - Britain had to accept policies of multilateral trade and join the new organisation of general agreement on tariffs and trade - Britain had to make the pound fully convertible to dollars within a year

labours post war balance of payments: what was the dollar gap

the us dollar was so strong that Britain began to suffer from it goods had to be paid for in dollars, making loans less effective and harder to repay

labours post war balance of payments: what was the loan running out years before it was meant to partly down to

the bad winter of 1946-47

labours post war balance of payments: who was the chancellor at this point

Hugh Dalton

labours post war balance of payments: what did Hugh Dalton have to allow holders of sterling to do

convert these into dollars

labours post war balance of payments: why did convertibility have to be suspended within a month

there weren't enough dollars in the Bank of England

labours post war balance of payments: what effect did the crisis have

shook confidence in Attlee's cabinet and brought home realisation that Britain couldn't continue spending so much on overseas commitments

labours post war balance of payments: which controls were reintroduced in the meantime

exchange controls

recovery: what was a significant reason for the economy starting to recover by 1948

American Aid

recovery: what had the usa started to fear from 1947 about poverty in Europe

that it would lead to spread of communism

recovery: under which plan did the US give 13 billion dollars in economic aid to Europe

the marshall plan

recovery: what did exports increase by between 1946 and 1950

80%

recovery: how much higher was the volume of exports by 1950, than 1937

50%

recovery: how was the motor vehicle industry especially successful

almost doubled pre-war peak of production

recovery: what was success of motor vehicle industry helped by

lack of competition fro Germany and Japan more damaged by war than britain

recovery: what setback was there in 1949

recession in America reduced demand for British exports and produced another balance of payments crisis

recovery: what did Stafford cripps do in response to 1949 balance of payments crisis

devalued pound sterling against US dollar £1 worth $2.8 instead of $4.03

recovery: what was the disadvantage of devaluing pound

it was a blow to british prestige

recovery: advantage of devaluing pound

made british exports to America cheaper and greatly reduced trade deficit between imports and exports

recovery: by when was the balance of payments in surplus

1950

recovery: what created another balance of payments crisis

Korean war

recovery: Attlee gov successes in industry

kept interest rates, inflation and wage rates low made it easier for firms to invest, expand and export

recovery: what improvements were seen in agriculture

productivity improved, able to produce more home grown foods- keeping imports lower and helping balance of payments

recovery: what proportion of new factories built 1945-51 were sited in formerly depressed areas

50%

recovery: which slogan was used to make staple and new industries push into full production

'export or die'

recovery: how was labour able to keep down wages and costs

through arrangements with the trade unions

recovery: why was the number of gov controls reduced between 1949-50

it was beginning to stifle enterprise

nationalisation: what did the post war labour gov succeed in taking into public ownership between 1946 and 1951

20% of economic enterprises and employing 10% of workforce

nationalisation: which areas of industry did the state mostly own/control

fuel and power production, transport, the steel industry and the bank of england

nationalisation: which factors made the nationalisation of industry possible in a way that could never have been possible before

the state had already virtually nationalised key parts of British industry between 1939-45

nationalisation: what was there now widespread belief in

the advantages of state planning, ownership and control. even amongst business people and middle classes

nationalisation: what did nationalisation have to be pushed through parliament in face of strong opposition from

the Conservatives

impact of nationalisation: the supply of what was expanded

electricity and gas

impact of nationalisation: growth in

civil aviation, cable and wireless communication

impact of nationalisation: electrification extended to

more and more remote parts of the country

impact of nationalisation: coal output increased significantly between

1946-1951

impact of nationalisation: state control ensured what met minimum standards

safety and working conditions

impact of nationalisation: why did nationalisation cost a lot of money

private owners had to be compensated which cost £2700 million

impact of nationalisation: how did it burden taxpayers

seriously run down, unprofitable industries which would have to be subsidised indefinitely eg coal and railways

impact of nationalisation: why did some nationalised industries not benefit from state control

administrative system adopted by labour didn't directly involve workers/consumers in the decision making and running of the great industries

impact of nationalisation: examples of industries in competition with each other

gas and electricity

impact of nationalisation: what was there improvement in for workers in nationalised industries

pay and conditions

how radical was nationalisation: how was nationalisation viewed by right wing

dangerous policy introducing socialism into Britain

how radical was nationalisation: for or against: most nationalised industries survived in state ownership until 1980s

for

how radical was nationalisation: for or against: nationalisation, along with welfare state moved Britain towards becoming a collectivist society

for

how radical was nationalisation: for or against: british economy ceased to become entirely capitalist and instead became a mixed economy

for `

how radical was nationalisation: for or against: nationalisation was also a step towards a more socialist Britain in which industry would run for social need not private gain

for

how radical was nationalisation: for or against: most of industries nationalised after 1945 had a long history of state involvement and control

against

how radical was nationalisation: for or against: form of nationalisation chosen was based on the organisation used for public corporations that had been created by the national gov in the 1930s

against

how radical was nationalisation: for or against: socialist demands for workers control were ignored. nationalised industries run by managers and civil servant

against

how radical was nationalisation: for or against: most of industries nationalised tended to be unprofitable ones

against

how radical was nationalisation: for or against: private owners compensated and their assets not confiscated

against

how radical was nationalisation: for or against: most industry remained in private hands

against

how radical was nationalisation: evidence for combination of limited central planning and Keynesian economic being a success

became basis of economic policy until late 1970s