Britain 18- economic issues

Question 1

what was the Second World War describes as and what does this mean?

Answer 1

‘Total war’- all the country’s economic and human resources mobilised

Question 2

how did the govt attempt to pay for war?

Answer 2

high taxation, rationing and persuading the population to buy war bonds

Question 3

how did the USA help Britain pay off war debt?

Answer 3

lend-lease scheme, 1941, provided war materials and essential supplies which wold be returned or paid for at a later dat. provided £27,000 million of aid in total

Question 4

how did the govt extends control at the start of war?

Answer 4

1939- passed the Emergency powers act where the govt was granted authority to make regulations covering any aspect of life necessary to secure the defence of the realm

Question 5

how did the govt use their extended power?

Answer 5

-ministries set up for food and shipping, information and economic warfare which were coordinated by cabinet committees
-power extended over industry

Question 6

how did the govt use their extended power in terms of ministries specifically?

Answer 6

for example, a ministry of aircraft production and a ministry of labour were established followed by a ministry of production in 1942

Question 7

how did the govt use their extended power in terms of industry specifically?

Answer 7

e.g. royal ordinance factories employed 300,000 workers whilst 265 factories did work for the Admirality and the ministry of aircraft production. non essential industries were run down so their machinery and labour could be diverted to war and new production methods devised, also encouraged greater use of science

Question 8

what was Ernest Bevin’s role during the war?

Answer 8

minister of Labour, oversaw the allocation of labour.
still over one mill unemployed in 1940 and Bevin not only had to get them back to work but mobilise the workforce for total war

Question 9

what did Bevin introduce to increase employment?

Answer 9

industrial conscription

Question 10

what could Bevin’s ministry do?

Answer 10

direct anyone to work at any job in any place

Question 11

give examples of industrial conscription

Answer 11

• from 1943, ‘Bevin Boys’ conscripted to work in the coal mines
  -women encouraged to work in shipbuilding, munitions and engineering

Question 12

what did the workforce increase by during the war?

Answer 12

2 mill

Question 13

what did Bevin use to force factories to improve conditions?

Answer 13

‘essential work orders’

Question 14

how did Bevin change working conditions and workers morale?

Answer 14

wages improved, canteens, washrooms, medical centres and TU bargaining continued.
encouraged lunchtime entertainment in factories

Question 15

what was the name of the broadcast used for lunchtime entertainment in factories and from what year?

Answer 15

from 1941, Workers’ playtime on BBC radio

Question 16

why did food imports have to be reduced?

Answer 16

due to the loss of shipping due to German U-Boat attacks

Question 17

when did rationing begin?

Answer 17

basic food by 1940 and everything else by 1941

Question 18

who oversaw rationing during the war?

Answer 18

the ministry of food under Lord Woolton

Question 19

how was agriculture encouraged to increase production during the war?

Answer 19

millions of acres of land ploughed up, production shifted from meat to cereals + greater use of fertilisers and tractors to raise productivity, ‘Dig for Victory campaign’ -> huge rise in home-grown veg

Question 20

what was the situation with rationing post-war?

Answer 20

policy of ‘austerity’:
-labour intensified wartime rationing to limit imports and divert resources to exports
-living standards held down
-economic crisis (1947)-> rations in 1948 lower than wartime levels
-bread and potatoes (not rationed in war) were rationed between 1946-8

Question 21

how were exports rebuilt post-war?

Answer 21

‘export drive’-> exports could earn dollars needed to buy essential imports of food and raw materials but imports had to be reduced to avoid paying for goods in dollars

Question 22

how did Britain switch back to peacetime production?

Answer 22

-needed to switch quickly if export drive was to be met
-govt controls maintained to give priority to exports
-regional policy encouraging new factories to open in old depressed areas
-wartime control on prices and wages maintained

Question 23

how was economic planning and employment managed post-war?

Answer 23

-aimed to support export drive through nationalisation
-used rationing to control which materials and labour could be put with priority for exports
-used taxation, interest rates and the budget to stimulate the economy and avoid inflation and unemployment
-agricultural subsidies + guaranteed prices

Question 24

how did the 1945 Labour govt try to build a new international economic system post-war?

Answer 24

cooperated with the USA to build a new economic oder, based on the world bank and international monetary fund

Question 25

how was their an economic crisis post-war?

Answer 25

-debts of £4198 mill -balance of payments crisis -60% drop in export of manufactured goods - reduction in invisible exports from £248 mill to £120 mill -rapidly increasing costs of maintaining military overseas

Question 26

to deal with the post-war economic crisis who negotiated loans and how much?

Answer 26

economist John Maynard Keynes negotiated loans from USA and Canada totalling more than $5000 mill

Question 27

what were the conditions of the $5000 mill loan from USA?

Answer 27

-Britain had to end its policy of preference to British empire -had to accept policies of multilateral trade + join new organisation of General Agreement on Tariffs and Trade -had to make pound fully convertible to dollars

Question 28

what caused the American loan to run out quicker than planned?

Answer 28

the fuel crisis of winter 1946-7- weather caused transportation to come to a standstill and the minister for fuel, Shinwell, had failed to stockpile enough coal. so Stafford 'austerity' Cripps forced to cut coal supplies to industries

Question 29

affect of fuel crisis on unemployment and exports?

Answer 29

rose temporarily to 2 mill and coal exports dropped by 20%

Question 30

by what year did the economy start to recover and why?

Answer 30

1948, mainly due to American aid as the USA started to fear that poverty in Europe would lead to the spread of communism-> Marshall plan

Question 31

how was the govts' drive for exports a success?

Answer 31

-exports increased by near 80% 1946-50 -motor car doubled its pre war peak

Question 32

why was their a serious setback to economic recovery in 1949?

Answer 32

recession in America reduced the demand for British exports and another balance of payments crisis. Cripps devalued the £ against tthe $. although a blow to prestige, made exports considerable cheaper

Question 33

what was the impact of the Korean war and when?

Answer 33

1950-53 Labour govt embarked on a major rearmament programme requiring more imports and leading to a balance of payments crisis

Question 34

what was Attlee's govt's industrial and agricultural successes?

Answer 34

-kept interest rated, inflation and wage rated low -agricultural productivity improved -more prosperity- 1/2 of new factories built 1945-51 were in formerly 'depressed areas' -production pushed by 'export or die' slogan

Question 35

how was nationalisation achieved by the 1945 labour govt?

Answer 35

-took into public ownership 20% of economic enterprises, employing 10% of workforce -state had virtually nationalised key parts of British industry 1939-45 -but some conservative opposition against road transport and steel as they were profitable

Question 36

what were the impacts of nationalisation?

Answer 36

-supply of electricity and gas expanded -growth in civil aviation and cable and wireless communications -electrification extended to more remote areas -coal output increased significantly -safety and working conditions met min standards

Question 37

what were the downsides of nationalisation?

Answer 37

-cost a lot of money-> private owners had to be compensated + this cost £2700 mill -burdened tax payers -administrative system set up by Labour didnt involve workers or consumers in decision making -comp between industries

Question 38

how was nationalisation viewed as radical and socialist?

Answer 38

-movement towards collectivist society -'mixed economy' -step towards more socialist Britain

Question 39

how was nationalisation not radical?

Answer 39

-socialist demands for workers control ignored -most industries nationalised tended to be unprofitable -private owners compensated -most industry still private