18.4 Nationalisation Flashcards
1
Q
How much of the economy was Nationalised by 1951?
A
20% and 10% of workers
2
Q
Which key industries were nationalised? (6)
A
1945 - Bank of England 1946 - Coal and Aviation 1947 - Public transport 1948 - Gas 1949 - Iron and Steel
3
Q
Why was one nationalisation particularly opposed by Conservatives?
A
Opposition from Conservatives on Steed and Iron as they were profitable which meant that there was a huge cost of compensation
4
Q
What were the successes of nationalisation? (5)
A
- Supply of electricity and gas was increased
- Electrification was extended to most parts of the country
- Coal output increased 1946-51
- State ensured minimum standards
- GB no longer needed the Marshall Aid by 1950-51
5
Q
What were the limitations of nationalisation? (4)
A
- VERY expensive, £2.7bn = opportunity cost
- Burdened taxpayers with unprofitable businesses
- The government did not know how to run these industries – same management
- Some industries in competition with each other
6
Q
How was nationalisation NOT radical? (5)
A
- Most industries had history of State Involvement
- Only 20% - most stayed private and owners were compensated
- Socialist demands for worker control had been ignored – mangers were still used
- Most industries nationalised tended to be unprofitable
- Most nationalised industries survived until 1980’s
7
Q
How was nationalisation radical? (3)
A
- Mixed economy for the first time
- Social needs at heart of decision making
- Welfare and collectivist state for the first time
