Economic Issues

Question 1

How did Gov Mobilise resources for war

Answer 1

• Emergency powers act extended, so they regulated aspects of life
• Gov control over industry (Royal ordinance factories 300k workers)

Question 2

Who was Ernest Bevin

Answer 2

• Set up ministry which directed people to work, 4.5m people entered the workforce
• ‘Essential work orders’ maintained working conditions and pay

Question 3

How was post war economic readjustment

Answer 3

• rationing maintained till 1954
• Peacetime production in factories (encouraged those in depressed areas)
• need new economic planning and employment (Nationalisation)

Question 4

Post war balance of payments

Answer 4

• £4000 million in debt 60% drop in exports
• Keynes negotiated loans with US and Canada ($5000 million) but
• Had to end empire preference for trade
• Join free trade org
• had to make £ convertible to $

Question 5

How was post war recovery

Answer 5

• Economy recovers due to US aid,as they feared communism.
• Exports increased by 80%
• 1949 Set back recession-Devalued the pound (actually increased exports)

Question 6

How did Nationalisation impact

Answer 6

• Took control of 20% enterprises
• War made Nationalisation popular
• ADV: coal out put increased, state ensure good working conditions, electrification expanded.
• Neg: owners compensated £2700 m, tax increased