Ecomonic Developments Of Britain Flashcards
Britains economy in 1951
Time of misery and mass unemployment and the government failure to solve problems within Britain.
Post war boom
When did rationing end and how did people’s lives improve
Rationing ended in 1954 and British people were set to enjoy the higher standard of living. Birth rate led to a fast growing population.
Post war boom
Britain by 1961
51 million people in Britain people which was 5% more than in 1951.
Post war boom
global economy after ww2
Global economy was booming as countries rebuilt, led to sustained increase in overseas trade, which brought high levels of earnings from export and investments.
Post war boom
Employment estimation
By 1955 it was estimated that for employment would be achieved with only 200,000 unemployed numbers, employed in traditional occupation, such as coal, mining and shipbuilding fell during this period there were huge expansions in electrical and engineering work
Post war boom
Service industries
by 1960 nearly 5,000,000 people were employed in servicing industries. Professional services to transport and sales were growing. Economic growth and low employment brought rising wages.
Post war boom
Run up to the 1955 election
Rap Butler was able to boost conservative election prospects with a giveaway budget that provided the middle classes with 134 million in tax cuts there was a growth in consumerism.
Post war boom
World trade improvements impact on Britain
Well trade enabled Britain to import about 29% more good than it had in 1951 for the same number of exports, Britain enjoyed a high income, jobs, money, goods, and better housing.
Post war boom
Luxury items
Adults found themselves spending money on cars, appliances, luxuries, and entertainment for the longer younger generation grow up amid plenty and oblivious to past shortages and fears.
Why was the “Stop, go” policies needed
Growth in wages outstripping the rate of increasing production and brought inflation. It was difficult to persuade the trade unions that their members should not have high wages.
How did the stop,go economics work? 
Imports, exceeded export and balance of payment crisis. Government controls, high interest rates and wages, freeze, demand, falls and output decreases. Then the controls are removed increase demand and rising imports.
Post war boom
United States pressure over suez crisis
It exposed Britain’s financial weaknesses and started a run on the pound. Peter Thorneycroft believed in monetarism where he would limit wage increases in cut money supply.
He was Peter Thornycroft
A Conservative MP, who believed in monetarism.
Post war boom
MacMillans response to thorneycroft
Overpowered and overruled his decision to propose drastic spending, and led to Thornycroft resigningand the postwar census had remained in place.
Aftermath of thorneycrofts resignation
The sterling regained its value of against the dollar and the economy expanded so much that the budget of April 1959, provided tax cuts of £370 million.
