Creating a Managed Economy 1939-51

Question 1

Managed economy

Answer 1

1939-51 British governments created a managed economy

Initially to manage wartime production and then to facilitate growth post 1945

Major industries nationalised

Britain economy= mixture of public and private enterprise

Question 2

Wartime economy

Answer 2

Gov created ministries eg ministry of food- given extensive power to control running of essential wartime industries

Extensive military spending to meet shortages in military production eg:
1940= 15,000 aircraft produced
1944=50,000 aircraft produced

Question 3

Post war austerity

Answer 3

Continuation of rationing and austerity

1) pay for cost of war
2) concentrate domestic production on exports
3) pay for developments of welfare state

Question 4

Post war debts

Answer 4

By end of WW2 Britain accumulated £4bn worth of debt to the US

Repaying with interest= £70mill/day

Permanent pressure on value of £- fell by 30% 1949

Question 5

Post war trade disruption

Answer 5

British trade had shrunk by 66% in immediate post war years

Question 6

Nationalisation 1945-…

Answer 6

Introduced by labour gov

1) Coal ‘46
2) BoEngland ‘46
3) Transport (rail, roads and busses) ‘47
4) Electricity ‘47
5) Gas ‘48
6) Iron and Steel ‘48

Question 7

Labours economic record 1945-51

Answer 7

Success:
Full employment ‘47-51
Reduced balance of trade deficit- exports grew by nearly 80%
Economy grew by 4% each year post 1948

However…
continued austerity