Creating a managed economy 1939-51

Question 1

Military expenditure

Answer 1

1939 significant shortages in military equipment.
Massive increases in industrial/productive structures.
Produced 15,000 aircraft in 1940 and 47,000 in 1944.

Question 2

Post-war austerity 1945-51

Answer 2

Continuation of rationing and austerity - pay for the cost of war.
Concentrate domestic production on exports.
Pay for development of the Welfare State.

Question 3

Debts

Answer 3

Over £4billion with the USA by the end of WW2.
Pound devalued by 30% in September 1949.

Question 4

Trade disruption

Answer 4

British trade seriously damaged by the war - shrank by as much as 66% in immediate post-war years.

Question 5

Britain’s expenisve world role

Answer 5

Marshall Aid from USA 1948 - £2.7billion for Britain.

Question 6

Nationalisation Acts

Answer 6

1946 Coal Industry Nationalisation Act.
1946 Bank of England Act.
1947 Transport Act.
1947 Electricity Act.
1948 Gas Act.
1949 Iron and Steel Act.