Economic Developments: Economic Issues under Churchill and Eden and Korean War Aftermath Flashcards
What war happened that was an economic issue?
Korean War
How much money was expected to be spent on the Korean War until 1953?
£4.7 billion
What percentage of all government spending went to the Korean War?
25.90%
Why did Inflation heavily increase over this period?
Continuous Go phases in Stop-Go economics
Why was there insufficient investment in to Industries?
Stop-Go economics discouraged long-term investors
Why was there low productivity in industries?
They needed to be modernised but this was difficult
Why was modernisation difficult?
implementing machines resulting in unemployment
Why were Industrial Relations poor?
Unions could take advantage of government and threaten to strike and get a pay rise
Why was the pound overvalued?
It did not come off of its fixed exchange rate
What were the Conservatives faced with due to the Korean War for the first year?
Balance of Payments Crisis
How did the end of the Korean War help the Conservatives?
Raw material price fell heavily
How much did the government gain a year in spending power after Korean War ended?
£400 million a year
What percentage more imports could Britain buy at the end of Korean War?
13% more
How much did the economy grow on average A year from 1951-64?
Around 2.5% a year
What European countries were overtaking Britain?
Germany and France
Why were Britain being overtaken in economic output in terms of Europe?
European competitors successfully implemented policies that Tory’s opposed
What did Tory’s discontinue which Labour made for modernization plans?
British Institute of Management
What were the alternative Conservative plans to modernise industry?
They did not have any
What did the Conservatives set out to do in their manifestos instead?
Cut social spending and reduce taxes
How many people were unemployed in 1955?
200,000
