(Economic challenges) Creation of a managed economy, 1939-1951 Flashcards

1
Q

What was the intention behind creating a managed economy?

A

To manage wartime economy

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2
Q

What is a managed economy also known as?

A

A planned economy

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3
Q

Why did the managed economy continue after WW2 until 1951?

A

To set up recovery from WW2.

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4
Q

After appeasement, Britain started rearmament in 1939.
What measures were taken?
(2)

A

15,000 aircrafts produced in 1940, rising to 47,000 in 1944.

6,000-8,000 tanks produced each year of WW2.

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5
Q

How is rearmament evident in the country’s GDP?

A

Military expenditure:
1939 = 15% of GDP
1945 = 51%

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6
Q

What had become a huge feature of monetary policy?

Give evidence.

A

Borrowing

Britain accumulated £4 billion+ of debt with USA, with interest amounting to £70 million every day.

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7
Q

Borrowing became a huge feature of monetary policy.

What did this result in?

A

Permanent pressure on value of the pound, leading to devaluation in 1949.

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8
Q

Employment - what was issued by Ernest Bevin in 1941?

What did this do?

A

The Essential Work Order

People in essential fields like coal mining weren’t allowed to leave jobs for any reason & it was difficult for employers to dismiss them.

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9
Q

Employment - what was introduced in 1939?

What did this do?

A

The Control of Employment Act

Allowed semi-skilled workers to work in industries previously viewed as skilled, like some areas of shipbuilding.

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10
Q

Employment - what were the 2 pieces of legislation introduced regarding employment to create and maintain a managed economy?

A

The Control of Employment Act 1939

The Essential Work Order 1941

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11
Q

State intervention - how did state intervention change?

A

Grew

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12
Q

State intervention - what provided the blueprint for the NHS?
What did it do?

A

The Emergency Medical Service

Gave the govt the right to direct voluntary & municipal hospitals across Britain.

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13
Q

State intervention - the National Blood Transfusion service was created.
What was the purpose of this?

A

Get people to donate blood to help civilians & the military & set social precedent of people taking an active role in the healthcare of others.

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14
Q

WW2 austerity - what did rationing do to the class system?

A

Levelled fashion across classes

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15
Q

WW2 austerity - how did the quality of life change?

A

It became more drab.

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16
Q

Explain how Britain’s economy grew more and more dependent on overseas aid.

(5)

A

Dec 1940 - Britain’s cash reserves spent.

Lend-Lease Agreement

US supplies brought to Britain by ‘Liberty Ships’.

After WW2, John Maynard Keynes negotiated £2.2 billion loan from US & Canada - not enough.

GB received £6 billion from Marshall Aid in 1948.

17
Q

A post-war consensus can be characterised by a belief in what?

(5)

A

Keynesian economics

Mixed economy

Nationalisation

Commitment to full employment

Welfare state

18
Q

How did the National Government & WW2 set the stage for consensus? (3)

A

Proved leaders from rival parties could work together & reach agreements.

Changed the role of govt - had to take more control, eg Emergency Powers Act 1940, which contained provisions for reacquisition of land & detention without trial.

Shift from free-market to mixed economy, where govt used rationing, Essential Work Order, conscription & censorship to engage GB in total war - society became more collectivist.

19
Q

How did the success of collectivism (WW2) set the stage for consensus?

A

Showed an approach where tackling certain problems by taking away rights for the common good is effective.

20
Q

How did the changing role of government as a result of WW2 set the stage for consensus?

A

The state was forced to take more control. The Emergency Powers Act of 1940 contained provisions for the reacquisition of land and detention without trial.

21
Q

How did the shift from the free market economy to a more mixed one (WW2) set the stage for consensus?

A

The govt used rationing, the Essential Work Order, conscription & censorship to engage Britain in a total war so society became more collectivist.