economy 1939-1964 Flashcards
what was the state of the economy after WW2?
UK exports expensive so economy slumped
unemployment at 2 million
inflation at 50%
in debt to the US
war has distorted what the economy was doing pre war
what changes were made to the economy during WW2?
imported 1/2 of its food - labour could be directed elsewhere
defence was 12% of GDP in 1939
reliant on global trade
economic appeasement in Germany
risk of economy collapsing from quick rearmament
more specialised factories eg in Coventry and Chorley
what rule did the government adopt after the war to help rebuild the economy?
10 year rule
assuming there wouldn’t be a war for 10 years
what was the emergency powers act?
gave the government authority to bring into force regulations covering any aspect of life necessary to secure the defence of the realm
what was the impact of the emergency powers act?
ministries set up to co-ordinate all areas of economy
made conscription mandatory for all men aged 18-41 later 51
more centralised government
what the emergency powers act successful?
distorted economy and caused staple industries in relative decline
necessary and pragmatic
overall successful
what food and rationing measures were introduced?
run from 1940 by Lord Woolton
gained respect for effective management
introduced after U boats were attacked causing a reduction in food imports, clothing and fuel
introduced in 1940
rationing consumer goods continued until 1942
were the food and rationing measures successful?
some thought that it was demoralising
disappointment that it continued until 1954
nobody starved
shortage of fuel
black markets emerged
what organisation of labour measures were introduced?
Ministry of Labour led by Bevin
1 million unemployed which Bevin wanted to utilise
introduced conscription into industry
‘Bevin boys’ conscripted to work in coal mines
women encouraged to work in munitions, engineering and ship-building
demands of war production mopped up the unemployed
4.5 million entered armed forces
bevin used Essential Work Orders to force factories to improve conditions
wages raised
lunchtime entertainment introduced to improve morale
Bevin visited factories and gave speeches
was the organisation of labour successful?
people respected Bevin
total workforce rose by 2 million
what war production measures were introduced?
Bevin showed how a free society could mobilise its workforce for war
priority was given to essential raw materials
Royal Ordanance Factories employed 300,000
256 factories did work for Admiralty + Ministry of Aircraft Production
non-essential industries were run down so that labour could be diverted to war work
new production methods devised to raise output and save labour
government encouraged greater use of science and farmers to grow crops not meat
how successful were the changes in war production?
not as good as they’d hoped
coal industry output low due to no innovation
how was the impact of the blitz modified?
resourced mobilised
people used London Underground or Anderson shelters to protect themselves
children evacuated to countryside
Government made school meals available and cheap milk available for displaced children and vitamins for pregnant women
development of radar technology
how successful was the modification of the blitz?
secured a sense of national unity and collective resilience
why did Britain have a balance of payments problem at the end of the war?
didn’t have anymore invisible exports
no demand for exports in heavy industry
what did Britain have to do as a result of their debt?
decrease imports, increase exports
no consumer goods were made for British people
loan from USA
why did Britains invisible export trade decline?
fallen due to huge shipping losses and forced sale of overseas investments
interest on loans wasn’t coming back
what did the Labour government need to do in order to address Britain’s negative balance of payments and why was it so unpopular?
austerity
cut imports
was labours economic policy successful?
resources were diverted to exports to try to overcome the defecit
by 1947, exports had risen
exports double the 1938 figure by 1950
exports increased by 80% between 1946-1950
SUCCESSFUL - affluence by 1954
how did living standards rise in the post war boom?
consumer goods such as televisions, cars, clothes.. became more affordable
length of working week reduced
cheap mortgages available - more home ownership
