Economic Problems - 1945 "A Financial Dunkirk" PROBLEMS

Question 1

Why was Atlee’s government confronted by an immediate financial crisis?

Answer 1

The cost of war

Question 2

What was common throughout Britain due to the warfare?

Answer 2

Vast destruction

Question 3

How many houses, factories and shops were destroyed?

Answer 3

1/2

Question 4

How much of prewar shipping was not replaced?

Answer 4

1/3

Question 5

What was crippling for the government?

Answer 5

The financial cost of war

Question 6

What increased?

Answer 6

National Debt

Question 7

How much did National Debt increase to?

Answer 7

£3,500

Question 8

How much of Britain’s wealth was lost over the course of both WW1 and 2?

Answer 8

45%

Question 9

What was income tax raised to?

Answer 9

50%

Question 10

How much foreign investment did Britain sell off?

Answer 10

£1,000 million foreign investment

Question 11

Why would adjustments to peacetime production be difficult?

Answer 11

Only 2% of workers were in export manufacture

Question 12

What was a problem for people with regards to the Conservative Party?

Answer 12

Conservative Parties had more support amongst the elite of business/industry and the Civil Service

Question 13

What did President Truman end?

Answer 13

The Lend-Lease Scheme

Question 14

What had the Lend-Lease Scheme been to Britain?

Answer 14

A British Lifeline

Question 15

What did Hugh Dalton describe the situation as?

Answer 15

“Very grim, grimmer than the worst nightmare”