(Economic challenges) Creation of a managed economy, 1939-1951 Flashcards
What was the intention behind creating a managed economy?
To manage wartime economy
What is a managed economy also known as?
A planned economy
Why did the managed economy continue after WW2 until 1951?
To set up recovery from WW2.
After appeasement, Britain started rearmament in 1939.
What measures were taken?
(2)
15,000 aircrafts produced in 1940, rising to 47,000 in 1944.
6,000-8,000 tanks produced each year of WW2.
How is rearmament evident in the country’s GDP?
Military expenditure:
1939 = 15% of GDP
1945 = 51%
What had become a huge feature of monetary policy?
Give evidence.
Borrowing
Britain accumulated £4 billion+ of debt with USA, with interest amounting to £70 million every day.
Borrowing became a huge feature of monetary policy.
What did this result in?
Permanent pressure on value of the pound, leading to devaluation in 1949.
Employment - what was issued by Ernest Bevin in 1941?
What did this do?
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.
Employment - what was introduced in 1939?
What did this do?
The Control of Employment Act
Allowed semi-skilled workers to work in industries previously viewed as skilled, like some areas of shipbuilding.
Employment - what were the 2 pieces of legislation introduced regarding employment to create and maintain a managed economy?
The Control of Employment Act 1939
The Essential Work Order 1941
State intervention - how did state intervention change?
Grew
State intervention - what provided the blueprint for the NHS?
What did it do?
The Emergency Medical Service
Gave the govt the right to direct voluntary & municipal hospitals across Britain.
State intervention - the National Blood Transfusion service was created.
What was the purpose of this?
Get people to donate blood to help civilians & the military & set social precedent of people taking an active role in the healthcare of others.
WW2 austerity - what did rationing do to the class system?
Levelled fashion across classes
WW2 austerity - how did the quality of life change?
It became more drab.
Explain how Britain’s economy grew more and more dependent on overseas aid.
(5)
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.
A post-war consensus can be characterised by a belief in what?
(5)
Keynesian economics
Mixed economy
Nationalisation
Commitment to full employment
Welfare state
How did the National Government & WW2 set the stage for consensus? (3)
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.
How did the success of collectivism (WW2) set the stage for consensus?
Showed an approach where tackling certain problems by taking away rights for the common good is effective.
How did the changing role of government as a result of WW2 set the stage for consensus?
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.
How did the shift from the free market economy to a more mixed one (WW2) set the stage for consensus?
The govt used rationing, the Essential Work Order, conscription & censorship to engage Britain in a total war so society became more collectivist.
