Economic Developments: Spending allocation and Chancellors from 1957-64 Flashcards
What form of running the economy was sustained in this era?
Stop-Go economics
How many Chancellor’s of the Exchequer did Macmillan have in 6 years?
4
Name the 4 Chancellor’s and when they were in office
Thorneycroft - 1957-8
Heathcote-Amory - 1958-60
Lloyd - 1960-2
Maudling - 1962-4
What is budget politics?
Budgets made pre-election to get more votes
What is an example of a pre-election budget in this era?
Heathcote-Amory’s 1959 Budget cutting taxes
What would the 1959 election budget cause?
It would cause more inflation when inflation was already high
What was the result of the 1959 Budget?
More spending so higher inflation
What is Stagflation?
When inflation increases but industry productivity does not
What did Stagflation point to?
The difficulties of managing a modern economy
Which country had the lowest GDP growth rate in Western Europe?
Britain
What was Britains average GDP Growth rate from 1951-64?
Around 2.5%
Why was Britain’s economic performance weak at the time of the mid-late 1950s?
Heavy defence expenditure
How much money did Britain spend on defence by 1964? What % of their GDP was this?
£1.7 billion spent which was 10% of their GDP
How much of Britain’s R&D Spending went to defence?
34.5%
How much of America’s R&D spending went to defence?
40.6%
How much of France and West Germany’s R&D spending went to defence?
France - 4.3%
West Germany - 5.1%
