Economic developments 1939-1964 Flashcards
Decrease in Britain’s world manufacturing capacity from 1914-1938
13.6% - 9%
Balance of payment crises during the war
Gold and international currency reserves were lower than the outbreak of the first world war
How did the coalition government deal with the manufacturing issue during the war
Conscription of men and women into work deemed as essential
Bevin Boys
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
Order 1305
Forbid strikes
Tax rises during the war
Tax on incomes over £1000 rose to 38%
Taxation on luxury products
Rose to 100% of their full value
Increase in cultivation of arable land
By 1945 It increased by over 50%
Money raised by war bonds
Almost £8.5 billion raised this way
View of women doing war work
Became a necessity with the Wartime Social survey finding that 97% of all women argued that women should do war work
Decrease in production of consumer goods 1939-44
Production in 1944 was 54% of that in 1939
How many bomber planes were introduced between 1940 - 1945
130,620
How many bomber planes were made in Germany in 1940-45
17,498
How much had British gold reserves fallen in 1941
£3 million
Britain’s overseas debt by the end of the war
£3 billion
How much did Lend-Lease help Britain
Britain received $750 million worth of arms in 1941 alone
Post war boom international industry
Royal Dutch Shell was an international business which moved its headquarters to the capital
Steel Company of Wales
Had one of the worlds most modern mill systems and employed 20,000 people
Chemical industry expansion
ICI employed 6000 research workers and spent more one research than all of the British Unis put together
British expansion in shipping
P&O had become the world’s largest shipping line with 366 vessels in total
Economic growth during MacMillan’s premiership
4% a year
Hugh Fraser III
An enterprising business who set up House of Fraser in 1948 and established the Universal Investment Trusts
Charles Fonte
Enterprising businessman who set up Little Chef and established Britain’s first motorway café
When was Lend Lease ended
1945
How much was the loan Britain wanted from the US
$6 billion, but could only get a $3.75 billion to be repaid at 2% interest
When did repayments of the 3.75 billion dollar load to the US begin
1951
How quickly was the loan from the US used up
Almost within a year
What did the deal of the free convertible of pound sterling to dollars lead to
Countries with sterling balance took $1 billion from British reserves
How much did the pound devalue
From $4.02 to $2.80 in 1949
How much were payment deficits due to expensive imports
£438 million
Marshall Aid to Britain
£1.263 billion, which made the economic situation more promising
Increase in exports by 1950
75% above their 1938 level
Stop go policies
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
Issue with the economic boom before the 1959 election
Bank rate decreased from 7-4.5% which led to a balance of payments deficit
Pay pause in 1960-61
No wage increases for government employees for 12 months
Corporate raiding became more popular
Buying stakes in a company then using voting rights as a shareholder to make changes to the management
Popular American style management technique
Changes in mining industry
Introduction of super pits which had modern, safer technology
But led to loss of 200,000 jobs
What industries expanded significantly
Aircraft and chemical
The abolition of Resale Price Maintenance
Lowered cost of living and increased competition by stopping suppliers dictating what a shop should sell its product at
How many miles of road were built by 1964
300 miles
Railway closures
Beeching recommended the closing of 1/3 of Britain’s routes and 5000 miles of track
How did the 1959 economic boom occur
Heathcoat-Amory cut taxes, wages rose and bank rates lowered from 7%-4.5%
