Chapter 2 - Economic Developments Flashcards
In 1951 what was Britain shaped by
The great depression of the 1930s the Second World War and the rebuilding of postwar Britainunder Atlee
What does it mean by the post war boom
More jobs money goods housing welfare state
What happened in the post war boom
Food rationing ended in 1954 acceleration of birth rate after World War II 51 million in Britain by 1951 1955 full employment achieved 200,000 unemployed less than 1% huge expansion in electrical engineering mod jobs in industry e.g cars and steel rising wages due to economic growth and lower unemployment
What did the Chancellor provide for the middle class in the run-up to the election
134 million in tax cuts thus a growth in consumerism
Why did overseas trade increased and what impact did this have
Global economy booming after countries rebuilt after the war meaning there was a sustained increase in trade overseas accompanied by high earnings from exports and investments imparted 29% more goods than a 51 for the same number of experts enjoyed a higher income per head
Why was the stop-go economics introduced
Growth in wages was higher than the rate of production inflation Conservatives needed to maintain growth and employment Mcmilan we need restraint and commonsense restraint in demands and common sense in how we spend our income government had to control to curb excessive spending that would lead to increase in imports and a rise in the cost
What is stop go economics
Lower interest rate and rising consumer spending good results in a condiment overheating wages and imports exceed productivity and exports leading to a deflection of the economy stop to higher interest rate and spending cuts
Who disagreed with stop go go
The trade union is as they believe that industries like mining they were not earning as much
What did higher salaries mean
Large internal consumer demand which did not encourage manufacturing is to increase export trade which would have helped Boyster the export industry this led to a trade deficit which helped to cause problems with balance of payments
What did the pressure from the US during the Suez crisis calls
A run on the pound Thornicroft believed in monetarism Thorneycroft with Macmillan is chancellor who proposed cuts in 1958 but was overruled and therefore resigned monetarism is limiting wage increases to cut off the money supply one nation conservatism opposed to this
Who was Enoch Powell and why was he significant
Conservative MP 1950 to 1970 held a number of rolls of cabinet he was a critic of the postwar consensus he became notorious after a speech about immigration and 68 and sacked from shadow cabinet no lasting harm to the popularity of the Conservatives as it increased by 1969
What improved in the economy between 1959 and 1964
Stilling weekend value against the dollar economic expansion so much that the budget of April 1959 divided tax cuts of 370 million
Negatives of the economy 1951 to 64
Rejection from EEC in 1963 per Paul’s introduced to hold down word inflation loan from International monetary fund economic growth in Britain left behind Germany and Europe and trade with the Empire and Commonwealth was not sufficient to keep up Beeching report 1963 recommended coats in rail network close to 30% of it lowering the bank rate encourage consumer spending 4% to 6% growth rate 1963 to 64
