A level exam: Chapter 18-Economic issues Flashcards
How were resources mobilised during the war?
Comprehensive government controls were introduced to cover food supplies, transport and the labour force.
How was government control extended?
The Emergency Powers Act was passed in 1939 and the government was granted authority to make regulations covering any aspect of life. Ministries were set up for food and shipping, information and economic warfare. Government control was extended over industry and workers were employed for wartime production.
What did Ernest Bevin do to help organise war work?
He oversaw the allocation of Labour and his ministry was able to direct anyone to work at any job in any place. Bevin boys were conscripted for work in the coal mines and women were encouraged to work in munitions. The total workforce rose by 2 million and factories were forced to improve their conditions. Bevin also maintained workers morale by delivering speeches to workers.
How were food supplies controlled?
Imports of food has reduced and so rationing of food, clothing and fuel was introduced. Agriculture was encouraged to increase food output and a major dig for victory campaign led to a rise in home grown vegetables.
What happened to rationing after the war?
Labour intensified war rationing in order to limit imports. The financial crisis meant that rations were below the wartime average ad bread and potatoes had to be rationed.
How did Labour rebuild exports?
There was an export drive to America to earn money to buy food and raw materials. imports had to be reduced to avoid paying for goods in dollars.
How did Labour move to peacetime production?
Government controls were maintained to allocate materials and they had regional policy directing and encouraging new facrtories to open in depressed areas. Wartime controls on prices and wages were maintained.
How did Labour use economic planning?
Nationalisation was used long term but short term, a rationing system was used to control the use to which materials and labour could be put with priority for exports. They also used taxation, interest rates and the budget to stimulte the economy and avoid inflation.
How did Labour build a new international economic system?
It cooperated with the US to build a new world economic order and it aimed to regulate trade and to avoid another depression.
What economic problems were left after war?
There were debts of £4198 million and they had a bad trade balance as they were spending more abroad than they recieved. There was a 60% drop in manufactured goods and there was a decrease in invisible exports.
What did Keynes do to help with the financial crisis after war?
He negotiated a loan from the USA and Canada totalling more than $5000 million. However this came with the conditions that: Britain had to end its policy of giving preference to countries, it had to join the organisation of General Agreement on tariffs and trade (which promoted free trade) and to make the pound fully convertible to dollars within a year.
How was Britain by 1948?
The economy had started to recover, largely due to Marshall Aid which gave 13 billion dollars to Europe. Britain recieved a large share of it and this helped to aid recovery. The export drive was also successful and exports increased by 80% between 1946 and 1950.
What impact did the 1949 recession in America have?
It reduced demand for exports and the pound was forced to be devalued against the dollar. This made Britain’s exports cheaper and so increased exports.
How well did Atlee’s government deal with agriculture and industry?
The government succeeded in keeping interest rates, inflation and wage rates low and productivity in agriculture improved. More home grown food meant less imports and less spending. Factories were being built in depressed areas and so staple and new industries were doing well.
How did Labour carry out nationalisation?
It succeeded in taking 20% of ecnomic enterprises and employing 10% of the workforce. The state controlled most fuel and power production, transport, steel and the bank of England.
