Economics (1951-64)

Question 1

2

What economic problems did the conservatives face when taking office?

Answer 1

• £700m balance of payments deficit
• Korean War financing: 10% of GNP and 30% of total expenditure

Question 2

5

Explain Affluence 1951-64

Answer 2

• Home ownership increased to 44% by 1964 (25% pre-war)
• Car ownership from 2m to 8m between 1950 and 1964

Question 3

6

Describe the post-war boom + wage stats

Answer 3

• Rising consumerism led to virtually full employment (less than 1% by 1955)
• real wages rose from £8 to £18 from 1950 to 1964
• economy grew by 2-3% a year between 1951-64 (1.3% during WW2)

Question 4

2

What were the positives of stop-go economics?

Answer 4

• short-term boost that won elections (1955 and 1959 budgets)
• ‘dash for growth’ - 4-6% econ growth