1940-1951 Flashcards

Question

what were the problems that caused the slow recovery of the economy after the war (3)

Answer 1

labour had promised to introduce nationalism and the welfare state but they struggled to pay for them Britain had enormous debts after the war, such as the loans to pay back America ($7.5 billion) had large empires to still look after the war such as communism in Russia and the war in Japan/ islands

Answer 2

loans from America to pay these for essential imports nationalisation of key industries in the short term they used rationing, taxation, guaranteed prices for farmers, low interest rates to avoid inflation and reduce unemployment rationing this was still needed to limit imports into Britain and increase exports, then living standards were kept down introduced many policies to improve industry, labour encouraged new factories to open and wages and prices were controlled building a new international economic system- labour cooperated with the USA to build a new world economic order

Answer 3

labour obtained loans/aids from America and Canada, these were needed to but imports Bevin succeeded in getting a large share of Marshall aid from America used to pay for nationalisation and the welfare state exports did increase especially the motor vehicle industry industry did expand due to the control of interest rates and wages agriculture helped by home grown food and less imports

Answer 4

the loans from America ran out quicker than thought the bad winter of 1946-47 created a fuel crisis and food shortage, this dented confidence in the Attlee government 1949- recession in America created less demand for British exports and the value of the pound fell nationalisation of some industries was hampered by the fact they were run down and the government did not have money to invest in them

Answer 5

belief- government intervention could improve the economy through controls wanted to create full employment and believed that controlling the economy would enable them to do this socialist ideas wanted a fairer and more equal society, wanted to abolish poverty and help the poor

Answer 6

the war had helped people develop an acceptance of nationalisation many key industries had been nationalised during the war, many preferred it even some middle classes, little opposition particularly over coal and the railways successfully took over many key industries and therefore had more control over pay, conditions, services ect. some industries improved gas and electricity supplies were expanded, wireless communications the economy stopped being entirely capitalist became a mixture of state and privately owned created a more socialist country with the aim for the social need not private gain

Answer 7

the cost- private owners had to be compensated the government took over some run down and unprofitable industries e.g. coal and railways. This cost the tax payer and the government could not afford to make many improvements some of the managers did not run the companies effectively and some were the same as before pay and conditions of the workers did not improve very much nationalisation was minimal- only coal and other fuel industries, steel, transport and the Bank of England. Therefore, most of industry was not nationalised by 1951

Answer 8

before WW2, some reforms had take place but it was minimal and there was little financial help with- medicine, children, pensions, society divided between those who could pay and those who couldn't the war had helped a sense of community develop and concern for others. 1942- Beveridge report his idea on 'from cradle to the grave'

Answer 9

children and families (1945 family allowances act- child benefit) 1944 education act (different types of schools for different abilities) housing programme (New Town act and Town and Countryside act) 1946 (industrial injuries act) (1946 National insurance act) 1946 NHS

Answer 10

NHS Bevan faced opposition from the conservatives and medical profession because doctors disliked the idea of being controlled by the government and they were worried that it would reduce their pay and take away their independence many thought the ideas were too socialist Bevan had to compromise (e.g. doctors could have a mixture pf private and NHS patients) regional differences shortage of staff and resources which lead to poorer quality of care and waiting lists they underestimated the cost of the NHS, Gaitskell was forced to introduce payments for some prescriptions and dental and optician charges level of benefit was low therefore poverty continued and many benefits did not rise with inflation it was often difficult to claim injury/sickness benefit as it was difficult to prove the economic problems meant labour could not build as many homes as they wanted

Answer 11

NHS (many benefited and the health of the nation increased with death rates falling and increase in medical intervention and access to cheap dentists and opticians) family allowances act helped many working class mothers and their children high rates of employment due to nationalisation education was free and available to all (grammar schools meant that many working class children were able to improve educationally) Rowntree's 3rd survey in 1951 proved that fewer people were living in poverty than in 1935

Answer 12

labour's majority fell to only 5 seats therefore another election was called in 1951 although many got votes the conservatives won with a majority.

Answer 13

bad timing (devaluation of the pound in 1949 had damaged morale and national pride) rearmament in 1951 for the Korean War was seen as too expensive and many blamed labour's link with America (e.g. Marshall aid and loans) division within the party (Gaitskell criticsed for introducing prescription charges) many were tired of too much government control (e.g. high tax, rationing and austerity, they wanted a change and envied the American life) the leaders were tired and getting too old (Bevin, Attlee, Morrison)

Answer 14

exploited labour's mistakes (e.g. problems in the NHS, failure of nationalisation to raise standards in industry) they promised to preserve reforms such as NHS and nationalisation pledged to build more houses than labour this was wanted as there was a housing crisis