Economic Developments Flashcards
What was the British nickname for the time of the Great Depression
The hungry Thirties.
When did Raiotning in Britain come to an end?
1954
In 1961 what was Britains population
51 million-a 5% growth from 1951
In 1955 what was the unemployment rate
Less than 1%
In 1959 how much was given away in tax cuts before the election?
£370 million-a key factor in Macmillans reelection
In the run-up to the 1955 election how much in tax cuts was provided to the middle class, that were later withdrawn
£134 million
What is “stop-go economics”
Stop-go economics is when the government tries to balance the desire for economic growth with the need to control inflation by alternating between stimulating economic activity (“go”) and slowing it down (“stop”), for example by the manipulation of interest rates-higher interest rates-cost of borrowing and reward for saving disincenticize growth and investment-so is contractionary monetary policy and vice versa. Fiscal policy tax cuts stimulate aggregate demand- expansionary- alternate between the two
What is Monetarism
The belief that a tight control over money supply is necessary to prevent inflation by limiting wage increases etc
What did Selwyn Lloyd, Macmillans third chancellor of the exchequer set up for long term economic planning
National Economic Development Council (NEDC), otherwise known as Neddy.
What key events guided 1950s british economic policy
The great depression, WW2 and Attlees period of labour rule- result in the post-war consensus
By 1960 how many were employed in the service industries
5 million-20% of workers
Why were higher salaries not necessarily beneficial and what issue did they create
although they created strong internal demand there was little investment for export industries and a high marginal propensity to import caused by growing wages lead to balance of payments crisis
What was ChancellorPeter Thorneycroft considered to be one of the first advocates of and was he succesful
Monetarism- no he was overruled in 1958 and he resigned with Enoch Powell- The post war consensus remained the status quo economic policy
in 1961 what did economic troubles lead the UK to do
ask for an IMF loan and apply to join the EEC
When and who was Britian rejected from the EEC by
1963-Charles De Gaulle-French(Derogatory)
