Chapter 2

Question 1

What three episodes of 1951 had Britain been shaped by ?

Answer 1

The Great Depression of 1930
Ww2
The rebuilding of Britain by store between 1945-51

Question 2

What were the key features of the post war boom

Answer 2

Food rationing came to an end in July 1954
There was an increase in the birth rate at the end of ww2
Sustained increase in overseas trade

Question 3

What was the increase in population between 1951 and 1961

Answer 3

By 1961 there were 51 million people 5% more than 1951

Question 4

What happened to economy during the post war boom

Answer 4

Global economy was booming

Question 5

What happened to employment in the uk

Answer 5

Plentiful employment
By 1955 it was estimated that full employment was achieved only 200,000 unemployed

Question 6

What happened to service/ industry

Answer 6

By 1960 there were nearly 5 million people in service/industry
There was an expansion in electrical and engineering work car manafacturing and steel + service industry

Question 7

What did rab butler do in the run up to the 1955 election

Answer 7

There were 134 million tax cuts, this made people feel more affluent and there was a growth in consumerism

Question 8

What happened to income during the post war boom

Answer 8

Higher income per head than any country apart from the us

Question 9

What happened to Britain’s share in world trade

Answer 9

Decreased over the 50s
Although Britain was steadily increasing other countries such as west Germany were Rapidly increasing and doubled its production

Question 10

What happened to wages in the late 50s

Answer 10

The increase in percentage decreased wages were still increasing but at a steady rate

Question 11

What is balance of trade

Answer 11

The difference between goods that the country imports and what it exports, if a country imports more than it exports it is said to have a trade defecit

Question 12

What is balance of payments

Answer 12

This includes invisible exports and imports and includes the balance of trades is apart of the balance of payments

Question 13

What causes inflation in the late 50s

Answer 13

There was a large growth in wages in the late 1950w the growth in wages was outstripping the rate of production this bought about inflation

Question 14

How did the government control inflation

Answer 14

The government needed to control excessive spending that would course unwanted increase in imports. The government responded by controlling interest rates, when output decreased they would remove controls

Question 15

Why was there a financial crisis on 1957

Answer 15

The pressure from the United States after suez caused a run on the pound

Question 16

How did Peter Thorneycroft respond to the run on the pound

Answer 16

He introduced monetarism which limit wage increases and cut the money supply

Question 17

Why were some politicians opposed to monetarism

Answer 17

Ian mcleod was so opposed to this because it would lead to increased unemployment and cutbacks in housing, macmillan sided with mcleod

Question 18

How did MacMillan respond to the financial crisis of 1957

Answer 18

He sided with those who wanted to keep an expansionist economic policy. Thorneycroft proposed spending cuts in 1958 macmillan overruled him causing Thorneycroft to resign

Question 19

Did the financial crisis cause lasting harm to the Tory government?

Answer 19

Didn’t do lasting harm
Sterling regained its value ageing the dollar the economy expanded so much that the budget of April 1959 provided tax cuts of £370 million pounds, this is accepted as the main reason for MacMillan re election

Question 20

Why did MacMillan decide that Britain needed to join Europe

Answer 20

Britain was being left behind and it was becoming clear that trade with the commonwealth was not sufficient

Question 21

What was the pay pause in 1961?

Answer 21

Worries about the economy overheating forced the government to introduce a pay pause to hold down wage inflation

Question 22

What economic difficulties facing conservatives of 1962

Answer 22

Balance of payments
Stop go

Question 23

What did Britain do to cut public expenditure

Answer 23

Hundreds of branch lines and thousands of stations were axed causing fudimental social change

Question 24

Why was it difficult to reduce wage increases

Answer 24

Trade unions