ADV INFO - Economic Development 1939-64 Flashcards
what does the total war mean for the economy
the British economy would be fully geared toward winning the conflict
what happened to Britain’s share of the world’s manufacturing capacity
1914 - 13.6%
1938 - 9%
what was lower than had been at the breakout of the first world war
the country’s gold and international currency reserves
who was key in ensuring the careful mobilisation of resources
Ernest Bevin
what had Ernest Bevin had a past in
the trade unions
what happened to the distribution of food during the war
rationing was introduced.
what did rationing cover
a wider range of foodstuffs, including meat, cheese and butter as well as fuel and clothing
what happened to the way men and women were recruited
they could be conscripted into work that the government had classified as essential
what was the national service no. 2 act do
it took all single women between 20 and 21 into war service, with this age being lowered to 19 in 1942
what did Churchill say about the necessity of women’s work
millions of new workers will be needed, and more than a million women must come boldly forward into our new industries - into shell plants, the munition works, and the aircraft factories
who were the most famous groups of conscripted workers
the ‘Bevin boys’
who were the Bevin boys
men aged between 18 and 24, whose national service numbers, were entered in a fortnightly ballot: those whose final digit matched that week’s randomly drawn number were sent to work in the coal mines
what was wrong with the Bevin boy scheme
it was deeply unpopular although it ran from 1943 to 1948
what was order 1305
it forbid strikes
why was bevin able to get away with passing order 1305
he was a union man himself
what happened to taxation
tax on income over £1000 per year rose to 38%. tax on unearned incomes over £1000 was set at 94%.
what was the taxation on luxury goods
luxury items were subject to tax equivalent to 100% of their full value
what happened in agriculture during the war
million-acre of spare land was to be used for crop production. By 1945, the amount of arable land under cultivation had increased y over 50%
what did many people do to the support the war effort
they bought war bonds
how much money was raised through war bonds
almost £8.5 billion, an average saving of £177 per person
what did people accept at the time
women’s conscription
what did the wartime social survey find out
97% of all women agreed that women should do war work
what did civilians do due to government encouragement
the saved and collected aluminium pans and iron railings for war materials
how was rationing respected by most people
only a minority made use of the black market, which gave access to luxuries
what did the public also seem to accept
not only income tax rises but also cuts in the production of consumer goods
what was production like during the war
in 1944, it was 54% of what it had been in 1939
what did many civilians do to meet ends meet
they took up two jobs, it was not unusual to see a vicar working as a postman
how did the military benefit from the public cooperation
130,620 bomber planes were produced between 1940 and 1945
how did the production in Britain compare to that of Germany
Germany made 17,498 planes compared to Britain’s 130,620
what did the economy struggle to do
cope with the demands of war
what happened to gold reserves in Britain as a result of the war
they dropped by £3 million by 1941
what was Britain’s overseas debt by the end of the war
over £3 billion
what helped to save the economy
Lend-lease
what did Britain receive due to lend-lease
$750 million worth of arms in 1941 alone
what did Mollie Panter-Downes say about the war
it is the stiffest dose of totalitarian principles that a democracy has ever had to swallow in order to save the democratic ideal from totalitarian destruction
who claimed that conscription did little to help women’s employment
Arthur Marwick
what did Arthur Marwick point to
in practice, only single women of the age group 19-24 were called up, and they were given the choice of serving in the Women’s Auxiliary services, in civil defence or in certain forms of civilian employment
what had happened at the end of the war for women
fewer than half a million women enrolled in the WRNS, the ATs and WAAF
where did women’s employment expand in most
light engineering and agriculture
what did the 1950s end up being
a period of economic growth
what happened during the 1950s
consumption increased and the population became more affluent
where did the industry expand
London
what is a key example of industry expanding
Royal Dutch-Shell, a large international business with its headquarters in the capital
what industry was booming
the British steel industry
what is an example of the steel industry booming
the steel company of wales, based in Port Talbot, had one of the world’s most modern milling systems and employed 20,000 people
what is an example of the chemical industry booming
ICI employed 6,000 research workers and was noted for spending more and R&D than all Britain’s universities put together!
what was the world’s largest shipping line
P&O, with 366 vessels in total
what did successful firms begin to do
apply contemporary market research and advertising techniques
what did Unilever do
they produced goods ranging from frozen food to toothpaste. They also invested heavily in training its managers, which had not previously been a priority in the British industry
what were the statistics for economic growth
it was 4% on average a year during Macmillan’s premiership
what business emerged in electronics
Ferranti
what business emerged in engines, light bulbs, fridges and washing machines
AEI
what business emerged in cars
rolls-Royce
what business emerged in shipbuilding and aircraft
Vickers
what businesses emerged in wheels and turbines blades
Guest, Keen and Nettlefolds
who set up a business in 1948
Hugh Fraser III
what business did Hugh Fraser set up
house of Fraser
what did Hugh Fraser do
established universal investment trusts, and added the john barker group (1957) and Harrods (1959) to his investments
what did Charles forte
expanded a group of roadside cafes into an enormous catering and hotel business
he set up little chef and happy eater chains
established Britain’s first motorway cafe
when was it shown that Britain was dependent on US support
when President Truman decided to end the Lend-Lease programme in 1945
what did the fragility of the economy mean
Britain was unable to produce and then export large quantities of goods
what was JM Keynes ordered to do
he was sent to Washinton to negotiate an interest-free loan of $6 billion, but the USA was unwilling to accede to his demands
what helped Britain in 1946
they received a loan of $3.75 billion, to be repaid at 2% interest. Those repayments would begin in 1951
what was the issue with the loan for Britain
it was almost entirely used up within a year
What did Britain have to do as part of the deal with the loan
they had to make the pound sterling freely convertible (exchangeable) for dollars from July 1947
what is the sterling balance
pounds earned from buying British exports; under the terms of the US loans, these could now be sold to Britain in exchange for dollars
who happened to the sterling balance
countries with a sterling balance took $1 billion from British reserves
what did the British government have to do due to the sterling balance
they had to suspend convertibility. Stafford Cripps also chose to devalue the pound, from $4.02 to $2.80, in 1949 in an attempt to boost British dollar reserves
what happened to the economy during the period
it remained unstable and the government tended to react to crises rather than engaging in long term planning. The next decade was marked by numerous balance of payments crises and subsequent stop-go policies in response
what did the USA do between 1947 and 1950
rearmed in response to the Soviet threat
what did American rearmament mean
the price of raw materials was forced up, making imports expensive
what happened to British exports in the period
they were 17% higher than their 1939 level
what did the cost of imports lead to
a balance of payments deficit of £438 million
how much did Britain receive through Marshall Aid
£1,263 billion
what happened to exports by 1950
they were 75% above their 1938 level
what was marshall aid
economic support is given by the USA to European countries to help them recover after the Second WOrlds War. The aim was partly humanitarian, but the USA also hoped to strengthen its European trading partners, as well as reduce the link between poverty and the growth of communism
how many chancellors were there between 1945 and 1962
9
what was the first stop policy in 1951-52
Churchill inherited a balance of payments deficit of £700 million. As chancellor, Butler responded by introducing credit restrictions, cutting food supplies, and reducing imports by £600 million
what happened to the payment surplus in 1952
it was £300 million due to the Korean War
what was the first go policy of 1953-54
Churchill’s government decided to cut the bank rate. Industry began to expand, investment increased, full employment was achieved and there was a rise in exports.
what was the second stop policy of 1955-56
Butler and his successor Macmillan pursued policies to slow the economy. purchase tax was increased, and the bank rate rose to 5.5%
what were Britain’s liabilities like compared to its assets in 1958-59
their liabilities were £4 billion and their assets were £850 million
What attempts were made in 1955-56 to try and lower inflation and reduce imports
hire purchase deposits were increased
what was the second go policy of 1957-58
Thorneycroft originally pursued policies to stimulate the economy. Taxes were lowered and credit restrictions eased; at first, exports boomed
what did the workers do due to the increase in consumer demand, prices and imports
they demanded higher wages
what happened when workers did not have wage increases
strikes were often the outcome.
what was the issue with regular strikes
it affected production and exports, leading to a balance of payments deficit
what was the third stop policy of 1958-59
Heavy cuts to spending
what did Thornycroft propose
spending cuts of £163 million
what happened to Thornycroft due to his suggestions
he resigned
who replaced Thornycroft
Heathcote-amory
what was the third go policy of 1959
an economic boom was created just before the general elections
what happened in time for the polling day of 1959
Heathcote-Amory cut taxes, simple credit controls, allowed wage increases and lowered the bank rate from 7% to 4.5%.
what happened in the 1959 election, with the contribution of the economic boom
Macmillan won a handsome majority
what was the third stop policy of 1960-63
credit was restricted, interest rates rose, 10% was added to purchase tax, and import duties were increased. A pay pause was introduced.
what was set up in 1961 and 1962
the national economic development council and the national incomes commission
why were NEDC and NIC of limited importance
the unions were reluctant to engage with them
what was the fourth go policy of 1963-64
the final year of the conservative government saw a big increase in imports, leading to a balance of payments deficit of £748 million in 1964.
what did growing competition lead to
British products were often priced out of the market
when was the first period of stop policies
1951-52
when was the first period of go policies
1953-54
when was the second period of stop policies
1955-56
when was the second period of go policies
1957-58
when was the third period of stop policies
1958-59
when was the third period of go policies
1959
when was the fourth period of stop policies
1960-63
when was the fourth period of go policies
1963-64
where were there changes due to recovery in trade and industry
technology and the administration of leading firms
what things continued to develop as they had done in the inter way years
chemicals and car industries and the improvement of management techniques
what things did British firms copy
US management techniques
what grew in the period
corporate raiding, as tycoons took over and reorganised poorly managed businesses
what started to become present in this period
good advertising - a number of American advertising firms set up headquarters in London
what industry was changing
the mining industry
how did the mining industry change
the introduction of large super pits provided the opportunity to use modern, safer technology, but also led to the loss of 200,000 jobs
what industries expanded significantly
aircraft and chemical industries
what did Home’s government do
they abolished the system of resale price maintenance, which had allowed manufacturers and suppliers to set the retail price of their goods
what was opened in December 1958
the 8 mile Preston bypass
how many miles of motorways were built by 1964
300 miles
what was the Preston bypass
the first new major road in Britain for 20 years
why were large amounts of motorways built
years of pressure, including a 1941 cabinet committee report criticising existing congested roads
what did Frederick Cook’s 1942 memorandum do
it argued that motorways would both help industry and improve road safety
what was opened in 1959
67 miles of the M1
what did the new parts of the M1 include
the country’s first service stations - Newport Pagnell and Watford gap
who was the transport minister
Ernest Marples
what new things were introduced
parking meters, yellow lines and Britain’s first major roundabouts
what did Dr Richard Beeching publish
the controversial ‘the reshaping of Britain’s Railways’ in March 1963
what did Dr Richard Beeching say in the reshaping of Britain’s Railways
he recommended the closure of one-third of the existing routes, 2361 stations and 5000 miles of track
where was the most significant change
the growth of the car industry
what businesses were merged
Austin Motor Company and Morris motors
what was the Merger of Austin and Morris called
the British Motor Company in 1952
which car was the most popular of the British Motor Company
the Morris minor
what was the morris minor the first car to do
sell over a million cars
who designed the morris minor
Alec Issigonis
how much did Morris Minor cost
£350
who was the owner of the BMC
Lord Nuffield
what car was introduced in 1959
the mini
why was the mini attractive for British consumers
its small size and fuel economy
why were industrial investment and expansion limited
‘stops’ and the cost of Britain’s nuclear programme
Why did the British textile industry decline
India
Where did the major economic threats come from
West Germany, the USA and Japan
What happened to West Germany’s share of world trade
buoyed by US investment, it grew nearly four times as fast as Britain’s
where did japan outperform Britain
shipbuilding, camera and electronics technologies and motorcycle production.
what demonstrated Japan’s increasing advantage
the growth of Honda, Kawasaki and especially Yamaha, with its popular Suzuki model
what happened in Japan in the 1950s
it was producing an average of 500,000 motorcycles a year, compared with the British average of 140,000
what were British industrialists scared to do
embrace change
how is the reluctance to accept change shown
of the 300,000 British companies that existed, only 1% were listed on the stock market
what did Macmillan and the other conservatives dislike
self-made entrepreneurs
what was the change in GDP during the period
France - 5% Italy - 5.1% Japan - 9.5% UK - 2.7% USA - 3.7% West Germany - 5.7%
what was the change in exports during the period
France - 8.1% Italy - 11.7% Japan - 15.4% UK - 4.1% USA - 5.1% West Germany - 10.8%
who was the president of the board of trade from 1945 to 1947
Stafford Cripps
what was the priority of Stafford Cripps
the promotion of new tech
what did Stafford Cripps do
he commissioned the council of industrial design to stage the ‘Britain Can Make it’ exhibition at the V&A museum in September 1946
how many people visited Britain Can Make it exhibition
1.4 million people visited, including 43,000 trade visitors and 7,000 trade buyers from 67 countries, leading to orders totalling more than £35 million
what did ‘Britain can make it’ exhibition show
despite the austerity of the Attlee years, it highlighted the encouraging progress that was being made in the technological field
where did British technology improve rapidly
the production of industrial glass and in the chemicals industry
what is a sign that British technology was both effective and competitive
the start of the offshore gas industry
what happened in 1956 with the industry
the nuclear power station at Calder Hall was connected to the National Grid, becoming the first nuclear power station to provide energy commercially
what did the Calder Hall use
a magnox gas-cooled reactor, using cutting edge technology
what project proved a major development in technology
the Concorde project
what did the Concorde project involve
cooperation with British aerospace and aérospatiale designed the airframe whilst Rolls-Royce and the French firm Snecma developed the jet engines
what was a watershed moment in air travel
2nd march 1969 - concordes first flight
what was the maximum cruising speed of the Concorde
1354 miles per hour
how long did it take the Concorde to go from London to new york
three hours
