AffSoc - Economic Developments Flashcards
What was the 1950s economy referred to as?
The post-war boom
When did rationing end, and what did this signify?
1954 - austerity was over
By 1961 how large was the population compared to 1951?
51 million people - 5% more than in 1951.
By 1961 how large was the population compared to 1951?
51 million people - 5% more than in 1951.
What was the global economy like during this period?
There was a global boom in trade, a sustained increase brought in high earnings from exports and investments.
What had been achieved by 1955?
Full employment, with less than 200,000 unemployed (<1% of the population/
What industries fell or rose during this period?
Primary industry overall fell but there was expansion in employment in electrical and engineering work.
By 1960 how many people were employed in the service industries?
5 million - roughly 1 in 5 of the population.
What did Butler do that got him accused of electioneering?
In the run-up to the 1955 Election he announced £134M of tax cuts for the middle class.
What did the improvement in world trade enable.
29% more imports than 1951 - leading to the introduction of pizza.
What was the main dilemma that the Conservatives faced in this period?
How to maintain employment without a significant increase in prices of goods.
What did the Conservatives fail to convince the TUs of?
That they shouldn’t have wage increases - but the enormous tax cuts and working body dissuaded this.
What did the government controls implemented at the time do?
Curb excessive inflation and keep taxation high. This control led to excessive spending and paid for public services.
What are the 7 stages of the stop/go cycle?
Imports exceed exports - BOP crisis
Gov controls - high interest rates & wage freezes
Demand falls
Output decreases
Controls removed
Increased demand
Rising imports
Which event started a run on the pound?
Globally the pound fell after pressure from the US over Suez exposed how over-reliant Britain was on the USA and therefore how fragile their economy was.
Who was Macmillan’s Chancellor and what did he want to implement?
Peter Thorneycroft - who wanted a monetarist approach by limiting wage increases and cutting the money supply.
What caused Thorneycroft’s resignation?
When he proposed drastic spending cuts in 1958 Macmillan overruled him and undermined his credibility, however this didn’t harm public opinion.
In 1958, what changed in the economy?
The pound regained value, and the 1959 budget announced 370M worth of tax cuts.
In 1958, what changed in the economy?
The pound regained value, and the 1959 budget announced 370M worth of tax cuts.
What majorly contributed towards the Cons Elec win in 1959?
The tax cuts, and the general air of consumer affluence.
When was the ‘pay pause’ and the £3 billion IMF loan?
1961.
What was Britain’s economic standing globally?
Europe was accelerating away from them, trade majorly within the Commonwealth was proving insufficient so Mac decided it was essential for British economy to be in the EEC - rejected by De Gaulle.
What was the 1963 Beeching Report?
An attempt to cut public spending - suggested closing 30% of the rail network -> 100s of stations were cut.
How did Maudling push the economy into a ‘go’ phase?
Growth +2% 63-64
Imports up 10% 61-64 but exports up 20%.
