Economic developments 1939-1964

Question 1

Decrease in Britain’s world manufacturing capacity from 1914-1938

Answer 1

13.6% - 9%

Question 2

Balance of payment crises during the war

Answer 2

Gold and international currency reserves were lower than the outbreak of the first world war

Question 3

How did the coalition government deal with the manufacturing issue during the war

Answer 3

Conscription of men and women into work deemed as essential

Question 4

Bevin Boys

Answer 4

Conscripted workers between the ages of 18 and 24 who’s national service numbers were drawn out a ballot to be sent to work in the coal mines
It ran from 1943 and 1948

Question 5

Order 1305

Answer 5

Forbid strikes

Question 6

Tax rises during the war

Answer 6

Tax on incomes over £1000 rose to 38%

Question 7

Taxation on luxury products

Answer 7

Rose to 100% of their full value

Question 8

Increase in cultivation of arable land

Answer 8

By 1945 It increased by over 50%

Question 9

Money raised by war bonds

Answer 9

Almost £8.5 billion raised this way

Question 10

View of women doing war work

Answer 10

Became a necessity with the Wartime Social survey finding that 97% of all women argued that women should do war work

Question 11

Decrease in production of consumer goods 1939-44

Answer 11

Production in 1944 was 54% of that in 1939

Question 12

How many bomber planes were introduced between 1940 - 1945

Answer 12

130,620

Question 13

How many bomber planes were made in Germany in 1940-45

Answer 13

17,498

Question 14

How much had British gold reserves fallen in 1941

Answer 14

£3 million

Question 15

Britain’s overseas debt by the end of the war

Answer 15

£3 billion

Question 16

How much did Lend-Lease help Britain

Answer 16

Britain received $750 million worth of arms in 1941 alone

Question 17

Post war boom international industry

Answer 17

Royal Dutch Shell was an international business which moved its headquarters to the capital

Question 18

Steel Company of Wales

Answer 18

Had one of the worlds most modern mill systems and employed 20,000 people

Question 19

Chemical industry expansion

Answer 19

ICI employed 6000 research workers and spent more one research than all of the British Unis put together

Question 20

British expansion in shipping

Answer 20

P&O had become the world’s largest shipping line with 366 vessels in total

Question 21

Economic growth during MacMillan’s premiership

Answer 21

4% a year

Question 22

Hugh Fraser III

Answer 22

An enterprising business who set up House of Fraser in 1948 and established the Universal Investment Trusts

Question 23

Charles Fonte

Answer 23

Enterprising businessman who set up Little Chef and established Britain’s first motorway café

Question 24

When was Lend Lease ended

Answer 24

1945

Question 25

How much was the loan Britain wanted from the US

Answer 25

$6 billion, but could only get a $3.75 billion to be repaid at 2% interest

Question 26

When did repayments of the 3.75 billion dollar load to the US begin

Answer 26

1951

Question 27

How quickly was the loan from the US used up

Answer 27

Almost within a year

Question 28

What did the deal of the free convertible of pound sterling to dollars lead to

Answer 28

Countries with sterling balance took $1 billion from British reserves

Question 29

How much did the pound devalue

Answer 29

From $4.02 to $2.80 in 1949

Question 30

How much were payment deficits due to expensive imports

Answer 30

£438 million

Question 31

Marshall Aid to Britain

Answer 31

£1.263 billion, which made the economic situation more promising

Question 32

Increase in exports by 1950

Answer 32

75% above their 1938 level

Question 33

Stop go policies

Answer 33

Had no long term solution and whenever a policy associated with stimulating the economy led to inflation or a balance of payments deficit, it was met with restrictions and higher taxes and interest rates

Question 34

Issue with the economic boom before the 1959 election

Answer 34

Bank rate decreased from 7-4.5% which led to a balance of payments deficit

Question 35

Pay pause in 1960-61

Answer 35

No wage increases for government employees for 12 months

Question 36

Corporate raiding became more popular

Answer 36

Buying stakes in a company then using voting rights as a shareholder to make changes to the management
Popular American style management technique

Question 37

Changes in mining industry

Answer 37

Introduction of super pits which had modern, safer technology
But led to loss of 200,000 jobs

Question 38

What industries expanded significantly

Answer 38

Aircraft and chemical

Question 39

The abolition of Resale Price Maintenance

Answer 39

Lowered cost of living and increased competition by stopping suppliers dictating what a shop should sell its product at

Question 40

How many miles of road were built by 1964

Answer 40

300 miles

Question 41

Railway closures

Answer 41

Beeching recommended the closing of 1/3 of Britain’s routes and 5000 miles of track

Question 42

How did the 1959 economic boom occur

Answer 42

Heathcoat-Amory cut taxes, wages rose and bank rates lowered from 7%-4.5%