ECONOMIC DEVELOPMENTS Flashcards
what is the post war recovery called?
the post war boom.
when did the post-war boom start?
from the mid 1950’s.
give two examples of things that happened in the post-war boom?
- wages rising (more spending).
- ppl were buying tv’s and cars (living imported).
what is this golden period often called?
the golden age.
however what is a limitation to the post war boom?
it only was seeming good at surface level.
when did food rationing come to an end?
in 1954.
what did the conservatives promise to do when the housing boom happened?
build 300,000 new homes a year.
stop-go definition?
a cycle of speeding upend slowing down the economy.
what is inflation?
when the prices of goods and services go up over time.
stop-go - when the govt grew too fast + inflation rose - what would they do?
stop it by raising taxes or interest rates.
stop-go - when growth slowed or unemployment rose -what would they do?
would go again by lowering taxes or interest rates to encourage spending.
what did stop-go economic do to the economy?
made it unstable.
what happened when Britain started importing more than they were exporting?
trade deficit.
what did the trade deficit cause?
a balance of payments crisis.
what is a balance of payments crisis?
not enough money is coming into the country.
what did Britain also have trouble with the value of?
the pound falling.w
what was it called when the pound was devalued?
devaluation.
did Macmillans govt ever truly fix this?
nope.
what were other countries like Germany/ Japan investing in?
new technology and production.
industries (British) like coal and textiles were seen as…?
outdated.
why weren’t necessary changes made about these outdated industries?
the govt didn’t want to upset the trade unions.
what was the EEC?
European economic community - early version of EU.
what happened in 1961?
Britain applied to join the EEC.
who denied them from joining the EEC?
De gaulle - French president.
