Economic Developments: Economic Issues under Churchill and Eden and Korean War Aftermath Flashcards

1
Q

What war happened that was an economic issue?

A

Korean War

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2
Q

How much money was expected to be spent on the Korean War until 1953?

A

£4.7 billion

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3
Q

What percentage of all government spending went to the Korean War?

A

25.90%

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4
Q

Why did Inflation heavily increase over this period?

A

Continuous Go phases in Stop-Go economics

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5
Q

Why was there insufficient investment in to Industries?

A

Stop-Go economics discouraged long-term investors

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6
Q

Why was there low productivity in industries?

A

They needed to be modernised but this was difficult

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7
Q

Why was modernisation difficult?

A

implementing machines resulting in unemployment

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8
Q

Why were Industrial Relations poor?

A

Unions could take advantage of government and threaten to strike and get a pay rise

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9
Q

Why was the pound overvalued?

A

It did not come off of its fixed exchange rate

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10
Q

What were the Conservatives faced with due to the Korean War for the first year?

A

Balance of Payments Crisis

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11
Q

How did the end of the Korean War help the Conservatives?

A

Raw material price fell heavily

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12
Q

How much did the government gain a year in spending power after Korean War ended?

A

£400 million a year

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13
Q

What percentage more imports could Britain buy at the end of Korean War?

A

13% more

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14
Q

How much did the economy grow on average A year from 1951-64?

A

Around 2.5% a year

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15
Q

What European countries were overtaking Britain?

A

Germany and France

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16
Q

Why were Britain being overtaken in economic output in terms of Europe?

A

European competitors successfully implemented policies that Tory’s opposed

17
Q

What did Tory’s discontinue which Labour made for modernization plans?

A

British Institute of Management

18
Q

What were the alternative Conservative plans to modernise industry?

A

They did not have any

19
Q

What did the Conservatives set out to do in their manifestos instead?

A

Cut social spending and reduce taxes