Brainscape's Knowledge GenomeTM


Top Flashcards (Certified)
All Flashcards

The Making Of Modern Britain > Economy > Flashcards

Economy Flashcards

1
Q

When was their full employment?

A

1955

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
2
Q

Why was their a run on the pound in 1956?

A

Suez Crisis

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
3
Q

What was MAcmillans eco. policy in 1957?

A

against monetarism (Thorneycroft)
–> he resigned with Enoch Powell

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
4
Q

Why did Macmillan win the 1959 election through eco?

A

£370 million tax cuts
pound regained in value

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
5
Q

When was the pay pause and the IMF loan?

A

1961

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
6
Q

When were their balance of payment problems and solutions?

A

1962 - NICKY and NEDDY were set up to monitor wages and prices by Selywn Lloyd

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
7
Q

WHen and what was the Beechinf Report?

A

1963 - closed 30% of all railways

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
8
Q

Britian international poisition 1964?

A

lagging behind Japan and Germany

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
9
Q

What was Labours eco. position in 1964?

A

inherited a £800 million deficit
options were to devalue ( party of devaluation) or deflate (stop go)

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
10
Q

What was Devaluation and Deflation?

A

Deflation–> support pound and prevent inflation
Devalutaion–> imports expensive, home good cheaper, help balance of payments by lowering value of pound

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
11
Q

What did George Brown set up to help economy in 1964?

A

DEA –> to help with wages
However it was competing with the Treasury to came to nothing

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
12
Q

When was Brown moved to Foreign Affairs and end of DEA?

A

(1966) moved
(1967) ended

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
13
Q

What replaced DEA?

A

prices and incomes policy to keep inflation down

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
14
Q

Why was there a sterling crisis in 1965?

A

Caused by the seamen strikes
However Labour gov. survived it

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
15
Q

What affected balance of payments in 1967?

A

War in Middle East affected oil supplies + major dock strike

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
16
Q

Outcome of balance of payment problem in 1967?

A

gov. devalued + pound dropped by 14%
Defence cuts + higher interest rates

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
17
Q

Post war consensus by 1970 economically?

A

questions whether state should take a greater role in planning economy and ensuring full employment

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
18
Q

Why were Labour unlucky when they lost the 1970 election?

A

Balance of payment surplus and inflation still running at 12% –> economy was improving

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
19
Q

Economy in 1971?

A

Anthony Barber (Chancellor)
tax cuts to encourage investment –> however led to stagflation
currency decimalised

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
20
Q

What was the famous U-turn?

A

(1971-2) Unemployment reached 1 million had to retreat from free-enterprise eco. principles his gov. had tried to follow
Rolls Royce Nationalised
Money poured in to prevent Upper Clyde Shipbuilders going bankrupt

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
21
Q

Affect of U turn?

A

Unemployement went down to 500,000

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
22
Q

What happened in 1973?

A

Yom Kippur War led to oil price crisis and a subsquent energy crisis and wage increase from miners after strike

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
23
Q

What did Labour inherit in 1974 economically?

A

Inflation at 15% and £3 billion balance of payment deficit

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
24
Q

Who was Chancellor from 1974-6 and first steps?

A

Denis Healey –> 2 budgets, March and July 1974, to deal with eco. crisis without annoying unions

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
25
What did Denis Healey propose in his budget April 1975?
steep rises in taxation and public spedning was cut
26
What was set up to with the aim to increase investment and give financial aid?
(1974) national Enterprise Board (NEB)
27
What economic action in 1975 created renewed contrversy?
British Leyland nationalised --> rescuing lame duck industries
28
What did Conservatives inherit economically in 1976?
poor balance of payment put pressure on sterling
29
What speech did CAllaghan give in Sept 1976 to labour Party Conference?
'cosy world' gone full employment gone prep. for £3 billion IMF loan and need for spending cuts
30
Callaghans eco abilities?
dealt well with IMF crisis and eco. recovered (1978) unemployment falling but still high and inflation at 10%
31
Public view on eco in 1976?
(Cons.) Nationally humiliating reinforced image that Britian in eco. decline
32
What was Thatchers initial eco. policy?
Monetarism --> controlled money supply to reduce inflation --> wets and dries (1981) gov. borrowing went down - benefits frozen - grants to local councils cut
33
Examples of wets and dries?
Wets: Willie Whielaw (Home Secretary) Jim Prior (employment minister) Dries: more eco. posts Geoffrey Howe (Chancellor) Keith Joseph (Department of Industry) Nigel Lawson
34
What was aim of monetarism?
Individuals spent moeny better that gov. did --> shift away from direct taxation to indirect e.g. VAT
35
Economy in 1980?
Stagflation came back
36
overall monetarism
hit poorer people harder (1986) Lawson abandoned spending cuts and monetarism ended by Thatchers second term
37
Interest in 1979, 1980, 1986, and 1990?
17% 22% 2.5% 10.7%
38
What was rate capping and when was it introduced?
(1981) control overspending and limit local tax
39
What were Thatchers 2nd and 3rd eco. policy?
Privitisation and deregulation
40
What was privitisation or (denationalisation) ?
Individuals spent money better than gov.; businesses would compete; brought revenue for gov. signalled end of post war consensus
41
When did privitisation not work?
local gov under financial pressures 'outsorucing' -->private companies took contracts to deliver goods previously provided by state life insecure for many employees: no long term job security or relaible pension provision
42
Examples of privitisation?
(1979) BP privatised main push --> (1984) British Telecom privatised (1986) British gas privatised (1994) plans to privatise coal, (1996) railways
43
What was deregulation?
Making it easier for businesses to trade and grow --? encouraging entrepreneurship
44
How did gov. encourage deregulation?
Loan Guarantee Scheme--> easier for small businesses to borrow money Enterprise Allowance Scheme --> encouraged unemployed ti start their own businesses by giving £40 a week to get businesses of ground
45
What was the 'big bang'?
(1986) deregulated London Stock exchange --> became world financial centre
46
Britain economy 1980 overall?
London financial capital of the world + compete with Wall Street Economy grew but productivity remained the same --> 2.2% growth in GDP no better than 1970 Growth in second half of the decade balanced the underperformance of the first half
47
Thatchers eco. belief?
New RIght --> inflation was threat of the economy Reversal of PWC where uneployment was avoided
48
Issues with high interest rates (1979-1980)?
more expensive for businesses to borrow incr. value of pound --> difficult for businesses to export Economy went into recession, businesses going bankrupt, led to high unemployment
49
What happened with interest rates in 1986?
Dropping very low, attempts to control inflation led to further recession and eventual entry to ERM By 1990 it then reached double figures again
50
Unemployment in 1983?
rose to 3 million (didnt fall below till 1987)
51
How was high unemployment in 1983 tackled?
Yotuh Employment Schemes --> employers received subsidy to take young people on Gov. remained firm that inflation more important than unemployment
52
How was North and South divide worsened?
Britians eco. moving away from heavy industry and instead based on services (1981) series of riots (1981) Scarman Report found cause was poverty and race --> high unemployment and deprivation
53
What was aim of the poll tax in 1990?
make local councils more accountable to their electors by ensuring everyone contributed
54
Negatives to poll tax?
poor pensioner would pay the same as a millionaire
55
Affect of poll tax?
Anti-poll Tax unions set up urging people not to pay (march 1990) anti-poll tax dem. in Trafalgur Square with more than 200,000 people --> led to riot and 5000 people injured (some police and innocent bystanders) --> 300 arrests made --> police lost control --> criticism of politicisation of the police
56
Economy from 1991-2?
rose from 1.6 million to 2.6 million homeowners in neative equity homes repossessed
57
What did Major do before the election in 1992?
resorted to high public spending --> spending forced as a result of risinf unemployment
58
When and what was ERM?
(1990) joined to maintain fixed rate of exchange with narrow fluctuations
59
What was Balck Wednesday?
(1992) left ERM -->> British currency under pressure and kept decreasing --> postivie eco. improv. but negative political --> unemployment rate slowed --> housing market picked up --> car ownership incr.
60
When was poll tax abandoned and affect?
(1991) was £1.5 billion wasted
61
What did Major inro. economically?
PFI (Private Finance Initiative) public-private partnerships private companies fund infrastructure improvements then deliver public services
62
Who was chancellor from 1997-2007?
Gordon Brown control over eco. policy
63
How did Brown help pay for work?
Intro. tax credits --> benefits paid to people with low incomes with specific elements targeted at e.g. disability or those with children
64
What did Labour inherit in 1997 economically?
favourable eco. circumstances
65
What were Lab priorities in 1997 and why?
Keep inflation low, gov. spending under control, appearance of pro-business --> to escape iamge as a 'tax and spend' party
66
Browns policy with Bank of ENg.?
made independent from gov. --> could decide where to set interest rates to match gov. chosen inflation
67
What did Brown do with Tresasury?
set rules about how mcuh could be borrowed by gov. --> following Thatcherite belier supply of money need to be controlled
68
Purpose of the treasury?
imporve public services --> investment in new schools and pay rise for doctors and teachers --> funding necessary after neglect from cons. 1979-97
69
How did Lab. avoid raising taxes?
Like Cons. used private sources of funding to improve public servies --> criticism: funding from PFI (prive Fiance Initiative) led to debts stored in future
70
Eco. by 2007?
Brown unprecendented 10yrs as chancellor - inflation under control - record number in wrok - living standards high - consumer eco. boomed
71
What was Economist view by 2007?
consumer boom based on rising house prices and high levels of credit card spending + personal debt than incr. productivity --> danger 'bubble' might not last

The Making Of Modern Britain (14 decks)

Brainscape helps you reach your goals faster, through stronger study habits.
© 2025 Bold Learning Solutions. Terms and Conditions