1945-1951 Flashcards
Clement Attlee [1945-51]
1945-6 Financial Crisis
During the war, Britain Had lost a ¼ of its wealth (the labour party had promised Reform and reconstruction tho)
• Labour had Promised to introduce nationalisationa and the welfate state after the 45 election but they struggle to pay for these
• Balence of payments crisis: Britain was spending £750 more abroad than wsd receiving in imports
• Britain had enormous debt after the war, America Loans
• Large over seas expendature, due to links with USA, they became involved with the COLD WAR against the USSR and COMMUNISM and HAD THE BRITISH EMPIRE TO GOVERN (this was gradualy lost tho)
Clement Attlee [1945-51]
USA LOAN 1946
• Keynes wanted a intrest free loan of $5000 Billion
• the usa didnt care and gave $3750 Billion instead with 2% intrest being paied over 50 years
• repay starts in 1951
• the loan is avalible by July 1946
Other terms om the loan include:
• no more imperial Prefferance
• convert £ and $ freely by 1947
• Canada helped by giving Britain $1500 Billion
Thanks Canada
ISSUES
• 1 year later most of the money was gone
• Deficite on the balence of payments was at £450 million by 1947
• 42% of imports were from the USA but only 14% of exports went there so giving more money than they were receoving from usa
• the post war boom: industrys were centerd in deprived old industry areas such as swansea so not very modern
Clement Attlee [1945-51]
Marshall aid 1948
“lifeline to a sinking man”
At first the usa dosnt think free grants would benifit the usa
but Secretary of state Georhe Marshall fears depression in europe could lead to
COMMUNISM
USA PANICS AT THE MERE MENTION OF COMMUNISM
and thus
the European Recovery program
gives grants
Beavan got $3000 million
$1200 million more than other countrys
with aids: rations are cut by ⅓ and the timber shortage is gone so housing can be built giving employment
ISSUES
• not solve all of britains problems
• only paid back by 2006
• only breathing space for britains economy to start to pay its debts
Clement Attlee [1945-51]
Convertability Crisis 1947
Due to the loand from america, britain had to pay back the loan in Dollars
issues
as the dollar was a strong currancy
it increased the amount being paid back
also affecting goods that were bought of the US in Dollars
Clement Attlee [1945-51]
Cripps’ audterity programme rationing and subsides
Only if Britain increased exports to the USA will it wipe out the deficits on its balance of payments and achieve credit surplus
• and they can only do it with hard work by all Society sections so no relying on aid can do economic growth alone
Subsides keep prices of food down
Food price guarantees and subsides and modernization create 20% increase output between 1947 and 52 one of the most efficient in the world
issues
Food shortages and restrictions
1951 meat bacon tea butter and sugar were still being rationed
Clement Attlee [1945-51]
The bad winter 1946-7
Coal and electricity demand increased
all fuels were rationed
and it was illegal to use electricity
Between 9:00 a.m. to 12 and between 2pm to 4 pm
2 million people were out of work in 1947 March
Many factories closed
Clement Attlee [1945-51]
Restrictions on imports and controls
To achieve favorable balance of payments the government buys supplies of raw materials for industry and then give it to Industries to increase the exports of cars and tractors and ships etc
By 1951 exports increased by 150% of what exports were in 1938
Issues
A chronic decrease of consumer goods being produced
Clement Attlee [1945-51]
The devaluation of the pound
August 1949
£=$2.80
nor $4.03 which is what it was
A recession in the USA and the decreasing UK gold and dollar reserves makes a 30% devaluation of the pound
Best however did make exports to the USA cheaper
Issues
But imports are more expensive
And the deviation the pound was humiliating to some people
Clement Attlee [1945-51]
Cuts in government spending
£120 million cut in spending by November 1949 less than £300 million than what cripps hoped for but it was the only way to stop the split in the cabinets
Especially in particular over Bevan making prescriptions cost money
Some of the agreed cuts include: defense spending, house subside, food subsides
By 1950 maritime trade was no longer needed
Clement Attlee [1945-51]
The Korean War 50-53*
So the USA in the UK are mates and then mates in this organization called the UN who is also mates with South Korea
South Korea has been attacked by North Korea and later China and secretly the USSR, this is because both Korea think they’re the real Korea and want to get rid of the other Korea and take back the rest of Korea
So everybody has a war
Issues
Import prices increased due to the war this is due to the USA having a shortage of raw materials increasing the price
Voluntary wage restraint ended which meant that inflation increased to 12%
January 1951 the Cabinets decides increase to £4,700 million in spending on armed shortages for 3 yrs
increases economic shortages
Clement Attlee [1945-51]
Clause IV of labour’s constitution
This was their devotion to socialism
” common ownership of the means of the production, distribution and exchange”
Nationalisation which would increase efficiency and cooperation between Industries so government’s money can go elsewhere into reforms and things
Clement Attlee [1945-51]
New Jerusalem
Successes of nationalisation (Idelness)
20% of the economy was nationalised by post-war labour
10% of the workforce was nationalised
Mines had infusiasm of the workers because they had wanted this for a very long time
Power from capitalism to the State
Previous owners of businesses were paid a sum in compensation
Mine owners (national coal bord 1947) were compensated £164,600,000
Some industry focused in areas of declining staple Industries such as Swansea
Most Industries stay nationalised till the 1980s
Labour had few nationalisation economy plans by 1945 so this amount of nationalization was impressive
Coal output increased between 1946-1951
As they know what money is going where they can develop underdeveloped Industries and use the extra money elsewhere such as reforms
Nobody accused labour of doing communist Revolution this time good for them
Efficiency increased
1946 the Bank of England was nationalised
1948 the transportation Industries were nationalised and the national transport Commission was set up
1948-49 the nationalisation of gas and electricity expanding on what Baldwin did in 1926
14 regional boards were established
The Conservatives used this however to delay the nationalization of Iron and steel
Clement Attlee [1945-51]
New Jerusalem
That weaknesses of nationalisation (Idelness)
Industry needed a lot of Investments to modernize them which decreases profits
It wasn’t full nationalisation
As public corporations were made such as the BBC in 1927, Parliament have nominal responsibility for them but little control over these corporations
Therefore the government was only responsible for these public corporations but couldn’t actually control them so it was an actually nationalisation
It was very expensive
In theory the people own new Industries but it was still run by a private business without much input from the workers
The public corporations was a burden on taxpayers
Industrial democracy was not discussed
and state capitalism that they were doing was not really socialism
There was a fuel crisis in 1947
There was no central planning agency to allocate resources or find solutions to these public corporations problems which made any problem that occurred incredibly expensive
The Conservative Party you the nationalisation of gas and electricity to delay the nationalization of Iron and steel
It costs £2,700 million in compensation to compensate the previous industry owners and boards
The only opposition to nationalisation from the Conservative Party was forced steel and iron as it went against the Tory philosophy
Iron and steels only nationalised in 1951 where 107 companies with taken over by a public corporation
The House of Lords veto law 1949 meant that they could only veto new legislation for one year now unlike two years previously in the 1911 Parliament Act
Therefore the conservative chums in the house of lord with only stop the nationalisation of Iron and steel until 1950 hence why it’s wasn’t nationalised until 1951
Clement Attlee [1945-51]
New Jerusalem
National insurance (want)
Acheivments
• after 1942 labour was committed to social security and to provide adequate payments to ensure a minimum standard of living
• and payments to assist bringing children up known as a family allowance
• James Griffiths created the National Insurance act (1946)
– compulsory employment scheme (for equal contribution if everybody)
– divided the population into: employed, unemployed and self-employed
– needed to be a minimum number of contributions before payments can be made to cover sickness or unemployment benefits
– the insurance contributors get a burial Grant, Maternity grant and orphans, Widows and old age pensions (65yrs man and 60yrs w)
– there was also a child benefit of 25 p per week till over 15 years old
• pensions per person was 25s/week (equ £1.25)
– and 42s/week for a married couple (equ £2.10)
– Avg wage 1948 equ £3 so these payments were very generous compared to b4
• the 1948 version of the National Insurance act increased payments and generosity
– and officially ended the Poor Law
• you couldn’t claim National Insurance/pensions if you were:
– homeless, long-term unemployed, disabled and elderly people who just need more money
Clement Attlee [1945-51]
New Jerusalem
National Insurance (Want)
Limitations
• the National Insurance scheme was good however they simply run out of money
• the National Insurance act of 1946 along with the whole scheme itself
– was criticized by both radical left-wing labours and right-wing Conservatives:
Right Wing Tories:
• it ignored private insurance and you can’t opt out of the national one (so must pay for both if u have private)
• it was universally priced and universal benefits meaning they were
– not adapted to people’s wages (given same as someone who earns/works more/less than you)
– or if they needed more support (given same if living in Statley home or poverty)
– so not Fair on those who work hard or in need as their pay is balenced out with ppl who dont need it
– selective targeting of who needs this support would be more efficient way of spending resources
• employers contribution discourages more employment
– as they would have to pay more contributions towards their employees national insurance if they had more employees
– possibly increasing Unemployment
Radical Left wing Labour
• they had decided that having to pay for a good standard of living wasn’t acceptable and people should have it anyway
• decided the benefits were too low
• if someone was unable to make payments towards the National Insurance then national assistance would need to be called to see if they were eligible or not
– which still included the means test which was very unpopular still
• the scheme was essentially insurance based on welfare which was the same as the 1911 version of the National Insurance act
– so little has changed ?
• there is an insufficient distribution of wealth towards the very poor (not enough to poor)
• some families is still in poverty as universal payments of this National Insurance isn’t enough for them
• so overall the National Insurance act of 1946 was good but they sort of ran out of money
Clement Attlee [1945-51]
New Jerusalem
Health/NHS (Disease)
Acheivments
• Aneurin Bevan was a radical labor MP
• he created the 1946 act that came into action 1948 that resulted in the creation of the National Health Service
• this gave free medical treatment
• allowed for independence in doctors
– so they wouldn’t become civil servants and lose status as independent professionals
• there was a large demand for prescriptions that were initially free
– 187 million prescriptions were given (1948-9)
• malnutrition, tuberculosis and death decreased
– whereas antibiotics increased
• infant mortality rate dropped by 50% by the mid 50s
– mother’s anxiety overchild health also decreased
– the elderly’s anxiety over health also decreasing due to the NHS
• due to the NHS being free and for everybody,
– it decreased the social divisions in society as now everybody could get Healthcare
• Private Healthcare was still allowed to keep people who like them happy
– due to this its refered to as: “two Englands”
Clement Attlee [1945-51]
New Jerusalem
Health and NHS (Disease)
Limitations
• the anticipated cost of the NHS per year was £140 Mill
– £358 Million in 1950 yikes
• not every service in the NHS was free for example dentists and opticians
– this was cut to finance the Korean War but wasn’t uncut
• by April 1951 prescriptions were being charged for
– cuz it was expencive
– this resulted in some ministers stepping down as they didn’t believe that this was the right thing to do
• Bevan overrided the vested interests of private doctors in private hospitals
– this was doctors personal interests (money) held in trust:
– in some private hospitals doctors were paid by patients for their service
– rather than the doctors being paid by their employers and patients paying employers
• this meant that doctors couldn’t charge extraordinary prices for their work
– as they were being paid by employers instead of directly from patients
• the NHS hospitals and private hospitals division may have slightly increase the class divide
– as rich becomes associated with private and vice versa
– so while NHS is Universal and Decreases all social Devisons
– the excistance of private hospitals still slightly increases them
• also the NHS was really really really f**** expensive
Clement Attlee [1945-51]
New Jerusalem
Education (Ignorence)
Acheivments
• the minister of education was Ellen wilkinson
• that was a crash course in teaching for 35,000 returning service men and women
• 1000 new primary schools were constructed in the late 1940’s
• the number of the university students increased from the pre-war level of 50,000 to 77,000 in 1949
• MP Ellen Wilkinson made passionate plees that’s gained enough funding to expand education for a new school leaving age in 1947
• FREE SCHOOL MILK
Clement Attlee [1945-51]
New Jerusalem
Education (Ignorence)
Limitations
• social /education implications of the tripartite system in the 1944 act
– it divided the secondary schools into grammar schools, modern schools and technical schools
– that was not enough funding for it to work properly
– it also introduced 11 plus tests to see if people could go to Grammar School
• Wilkinson was worried the working class children were deprived of education in humanities
– as they could only understand the ‘concrete’ things and not higher level cultural aspect of Grammar School education
– however there was little expansion of state schools (public)
– and only 250 had been made by 1950
• so limitation of the 1944 act still remained
• there was still a class divide with privaledged grammar schoola
– they kept daily religious services despite saying that they weren’t going to keep it
– and they didn’t open up University level education significantly
– and the existence of private schools as well as public schools further created a class divide
• this meant that the Socialist government still maintained privileged in these aspects of the school system
– meaning it was not meritocratic (develop on merit)
Clement Attlee [1945-51]
New Jerusalem
Housing (Squalor)
acheivments
• “Let us face the Future” = Labour give every family a good quality house
• New Towns Act 1946:
– Gov has power to decide where new town should be built
– Green belts created to prevent urban sprawl around large cities (best improvment to urban living)
– New towns are built on the edge of these green belts
14 new towns 1946-50, 1st of which was Stevenage
Town and Country Planning Act 1947:
– Local Authorities must build plans antisipating how land in their juristiction will be used in the forseable future.
– had to consider private/public housing, industry, aggraculture and recreation
– Preserve historical Buildings
– Compulsery Purchasing of Land (local authorities can purchase land (i.e slums and stuff)l
– Planning permision moe needed for buildings to be built on or Extended
The National Park and Access to the Countryside act 1949:
– set aside areas of Natural Beauty fo the Enjoyment of the whole population
Clement Attlee [1945-51]
New Jerusalem
Housing (Squalor)
Limitations
• in 1939 there was some shortages as they were missing 1.25 million homes
• housing came under Bevans health ministry which was too much for one man to do
– Beavan had exceeded Churchill’s promise of 750000 houses by 1945, But due to the post war baby boom there was still shortages when Labour left in 1951
– many houses needed repairing too cuz of bomb damage
– 1946 500000 homes made, but cost £1000, EACH
– shortages of building materials
– expensive to make houses
– need the money for new hospitals and factorys (focus on that not Houses)
– Council houses rent was 10s/week (good for working class)
BUT built to the ratio of 4 Private houses to 1 council one
– council houses building Funded by Exchequre
– The 4:1 ratio severly Limited the overal number of houses built
– (cuz less of the funded council houses were built than private ones that would need to be bought to make money back to build more houses)
– Therefore House building was Slow
– only 55,000 new houses completed in 1946
– 140,000 in 1947
– 250,000 in 1948
– 1940-51 avg = 200,000 houses built
(so got better just very slow, also still a shortage somhow)
Clement Attlee [1945-51]
Labours reforms Comprehensive?
• 20% of industry was nationalised and manufacturers increased by 50%
– exports increased by 67% between 1947-50 leading to affluence in the 50s and 60s (Like the BEATLES HAHAH YEA)
BUT
• NHS cost £400 million in its 1st yr
• there were 10,000 dentists for 47 million people in 1948 showing a shortage of trained staff
• 4:1 (exchecker funded) council houses to private houses limiting the number of houses overall that can be built
• only 50,000 new houses in 1946 this slowly increased to a reasonable number of 200,000 per year between 1940-51
– however due to the baby boom after the war that was still a shortage by the time labour left office in 1951
Clement Attlee [1945-51]
Labour’s Reforms Universal?
• Rowntree’s York poverty report in 1936 showed 30% of York was The Beginning poverty in 1951 however this was only 3%
as a universal employment was retained after the war
• but labour was not socialist enough and essentially just welfare capitalism
• not everyone could claim their national insurance as if you were elderly who wanted more money, disabled ,homeless or long-term unemployed you couldn’t claim it
• there was still the existence of private schools and private health care which created a class divided that was only partially reduced by their universal counterparts (nhs and Public schools)
• even in the triparty system of public secondary schools there was still the distinction between technical and mondern
– against the seemingly more prestigious grammar schools
• I should know this because my Grandad keeps telling me we didn’t get into king eds Grammar School, but i did
except its a college now
Strength of conservatives going into the 1950 election
• the party was reorganised by Lord Woolton
– they organized further opposition towards further nationlisation which they said was costly and only done to please labour
• they moderated Churchill’s criticism of socialism
– therefore there were no more parisons of the Labour Party to the Gestapo
Weakness of the Labour Party going into the 1950 general election
• the continuation of unpopular economic regulations such as rationing
– despite Wilson’s attempt of a bonfire of controls especially closed for the home Market continuing was unpopular
• labour wasted £36 million on government projects encouraging ground nut growing in unsuitable conditions in West Africa in 1949 which was incredibly unpopular
• there was a swing in Southern Suburbs seats where labor lost a lot of middle class votes
– this was likely due to Bevan calling the Tories” lower than vermin”
• the initial 1945 momentum of Labour had been lost
– and there were more subceptible to quarrels and traditional divisions between left and rights
1950 election results:
Labour: 315 seats, 46.1% votes
Conservatives: 297 seats, 43.5% votes
Liberals: 9 seats 9.1% votes
why was there an election in 1951
after the 1950 one?
• leight without Force after wing the 1950 election due to
their failing popularity
economic difficulties
the government exhausting itself
bevan resigning and dieing in 51 and cripps dying in 1950
and the labour majority falling to only 5 seats
this causes them to call another general election in 1951
to see if they were still in favour
1951 election
bad timimg for Labour to call one
• this was relatively poor timing for labor to call a general election
as economy had recovered and the people had realised this
it then fell again during the Korean War rearmament but that is okay
labour Had some party divisions between the left and right
and the middle class began to feel discontent with labour
General Election 1951 results
Conservatives: 321 seats, 48% of vote
Labour: 295 seats, 48.8% of the vote
Iiberals: 6 seats, 2.6% of the votes
• this showed that more people supported the Labour Party in terms of percentage of votes
while the conservative party had more areas supporting them
and due to the first past the post system of elections and government it meant that’s the Conservatives had more seats than labour
meaning the system of election benefited the Conservative Party allowing them to win when they had less votes than the Labour Party
1951 election
Weakness of Labour
• left wing and right wing of the labour party was divided again
• the average age of the cabinet in 1950 was 60
Bevan resigned due to health service charges and then died in 1951
and Cripps died in 1950
the chairman claimed in 1950:
“poverty had been abolished hunger is unknown, the sick are tended, the old folk are cherished, our children are growing up in the land of plenty”
this was a severe exaggeration
labour gave the country post war of shortages, rationing, high taxes and a financial crisis
• also the party seemed very dram and when they decided to try to do fun it was too late
as in the 1951 between May and September the festival of Britain was too late to change public perception of them and they were still considered to be incredibly boring
1951 gen election
conservative revival
• to show that the Conservatives accepted labour’s social reforms and the Conservatives were Modern
in 1947 they made the industrial charter which stated:
“we are not a party of unbridled brutal capitalism and never have been”
lol
Churchill was a very popular figure and the people wanted to thank him for fighting World War 2 and helping them win it
Churchill didn’t turn up to the house of commons so new Tories got the limelight such as Oliver lyttelton and Oliver Stanley
The 1951 general election
the electoral system
Due to the electoral system of First Pass the Post
despite labour having a higher percentage of votes at 48.8%
than the Conservatives who had only 48%
the Conservatives had more areas won
meaning that they had more seats than the labour party
at 321 seats for the Conservatives
and 295 for labour
meaning this electoral system worked the advantage of the Conservatives party
The 1951 general election
The collapse of the Liberal vote
In 1950 the Liberal Party had 9 seats with 775 candidates
which was 169 more than in 1945
However they had exalters their funds so in the 1951 election
they only had 109 candidates
And only 6 seats
They lost almost 2 million votes between 1950 and 1951
Most of these 2 million votes that were lost went to the Conservatives rather than labour
As the Conservatives seemed closer to liberals than labour did
The 1951 general election
The election campaign
The Conservative Party got 84% of the votes
• Churchill promised if he won then they would organise a meeting between the USA and the USSR at a
“ meeting of the Summit”
Labour Called this a stunt to try to gain popularity
well duh
The Conservatves promise to build 300,000 houses per year
The labour newspaper for Daily Mirror stated:
“whose finger on the trigger?”
They suggested churcher would win the election he would start an atomic War
This ploy in attempt to sway popularity from the Conservatives wasn’t very effective only a little bit
• the 1950 to 51 labour governments was very short lived
and in the 1951 General Election those are 2.5% swing towards the Tory Party showing just how unpopular labour had become
The 1950 to 51 government will also suffered
– from Bevans resignation over health service charges
– and the economically harmful Korean War
– it’s also suffered from a very humiliating attempt to nationalised the Abadan oil refinery in Iran
• the 1950 to 51 government became known as
“ the unhappy Parliament”
• it is incredible however the space of the Year a governments can do so many mildly disappointing things
that everyone would forget about all the good they did earlier
to the point that they decided to get rid of them
random acts to do with the 5 giants
• the 1944 Butler’s education act (ignorence)
• the 1945 family allowance act (want)
• the 1946 national insurance act (+1948 vers) (want)
• the 1946 industrial injurys act ( want, idleness, disease)
• the 1946 new towns act (squalor)
• the 1947 towns and Country planning act (squalor)
• 1948 the NHS (Disease)
• the 1948 national assistance act ( want, idleness)
