Gov Deal With Economic Change 1918-79 Flashcards
What was Britain’s position in global trade before 1914?
Britain was the world’s leading trading nation
This dominance was significantly impacted by the First World War.
What caused the collapse in British trade during the First World War?
The war led to a collapse in trade largely because all available shipping was used to import essential war supplies
20 percent of all merchant ships were sunk during this period.
Which countries filled the gap left by the decline in British exports after the war?
The USA and Japan
These countries became economic rivals to Britain post-war.
How much did Britain borrow to fight the last two years of the war?
£850 million (£35.1 billion in 2014 values)
This borrowing was necessary after exhausting gold reserves and selling overseas assets.
What was a contemporary view regarding large government spending and debt?
It was thought to be bad for the economy because it reduced confidence in the stability of the state.
What financial standard did Britain abandon in 1914?
The Gold Standard
This abandonment was due to the costs of the war.
What was the inflation rate by 1918?
25 percent
This was a major concern for the coalition government.
What areas saw major technological advancements due to the war?
Aircraft industry, radio communications, car industry, medical science
The war accelerated development in these sectors.
What production techniques became more widely used during the war?
Machine tools and assembly-line techniques
These techniques encouraged the employment of semi-skilled labour.
Fill in the blank: The war led to a significant increase in _______.
inflation
True or False: The value of the pound was fixed to gold before the war.
True
What was one effect of the war on the value of the pound?
Britain could no longer circulate gold coins
The government printed more paper money instead.
What were the economic problems Britain faced in the 1920s?
The war cannot be blamed for all of Britain’s economic problems; other nations recovered more effectively despite serious issues. British industries struggled to compete with new international rivals.
How did British trade unions change from 1913 to 1920?
Membership increased from four million in 1913 to a high of 8.3 million in 1920, allowing unions to secure reduced working hours without pay cuts.
What was the impact of tax and spending cuts after 1918?
Taxes were raised and government spending was cut dramatically, contributing to growing unemployment.
What was the ‘Geddes Axe’?
The 1922 ‘Geddes Axe’ led to significant cuts in spending on education, pensions, unemployment benefits, housing, and health.
What was the goal of the high interest rates set by the government?
To cut inflation and encourage foreign investment by increasing the value of the pound against other currencies.
What was the effect of the high exchange rate on British exports?
The high exchange rate made British exports more expensive and uncompetitive, contributing to the end of a brief post-war boom.
What was the response to the threat to British industry in 1921?
The Conservative coalition introduced duties to protect key industries, but this led to a lack of necessary changes for long-term competitiveness.
What was the unemployment rate in Britain between the wars?
Unemployment never fell below ten percent and rose as high as 23 percent during the worst years of the slump, with significant regional variations.
What triggered a change in economic policy in 1931?
The mutiny of 12,000 sailors in opposition to pay cuts led to Britain leaving the Gold Standard and allowing the pound to float against other currencies.
What were the effects of allowing the pound to float?
British exports became 25 percent cheaper, interest rates were cut, and government debt repayment costs decreased, allowing for increased spending.
How did the availability of cheaper mortgages impact employment?
It fueled a boom in house construction, creating almost one in three new jobs between 1931 and 1934.
What was the approach of the National government in 1939 regarding people’s lives?
The National government had no reservations about interfering in people’s lives to wage ‘total war’.
What measures were introduced almost immediately by the National government in 1939?
Rationing and conscription were introduced almost immediately.
What was made compulsory in 1941?
Registration for employment was made compulsory in 1941.
How many Essential Work Orders were issued by the government?
The government issued around 8.5 million Essential Work Orders.
How many people worked in munitions by 1945?
By 1945, 3.2 million people had worked in munitions.
How many people were conscripted to the armed forces by 1945?
5.5 million had been conscripted to the armed forces by 1945.
What was the general public’s attitude towards strikes during the war?
Strikes were to boost wages rather than attack government planning; people accepted giving up certain freedoms to defeat fascism.
What long-term impact did the war have on government management of the economy?
There was increased acceptance of government management of the economy.
What did the government declare in 1944 regarding employment?
The government declared its long-term responsibility for the maintenance of high employment.
Who was John Maynard Keynes?
John Maynard Keynes was a leading Cambridge economist whose theories gained prominence after the war.
What was Keynes’s argument regarding government spending during hard times?
Keynes argued that the government should borrow and spend more money to stimulate recovery.
What economic policy dominated until the 1970s?
The thinking of borrowing and spending to stimulate the economy dominated economic policy until the 1970s.
What was the traditional treasury view before 1939?
The traditional treasury view aimed to balance budgets in hard times.
What was the idea of borrowing considered during Keynes’s time?
The idea of borrowing was considered so radical that it was notable except in times of great effect.
What effect did Keynes’s ideas have on government policy?
Successful government policies lent weight to Keynes’s ideas.
What happened to Keynes’s ideas after his death?
His ideas profoundly influenced the economy, but solutions lost credibility during periods of high unemployment.
What approach was suggested to regain credibility in economic policy?
A market approach was suggested to regain credibility, including in the UK.
What is ‘Butskellism’?
‘Butskellism’ refers to the similar economic policies of Labour and the Conservatives in the 1950s, named after R. A. Butler and Hugh Gaitskell.
What were the main economic policies of the Conservatives from 1951-64?
The Conservatives accepted Labour’s post-war reforms and followed a Keynesian approach, focusing on maintaining low inflation and full employment.
What was the ‘stop-go’ policy?
‘Stop-go’ policies involved stopping the economy to control inflation and expanding it to maintain full employment, often used before elections.
What economic issues did the Conservatives face?
The Conservatives faced inflation, unemployment, and slow economic growth, criticized for short-term solutions rather than long-term management.
What was the economic growth rate of Britain compared to its competitors?
Britain’s economy grew at 2.3% per year, compared to 5.6% in Italy and 5.1% in Germany.
What was the impact of the ‘stop-go’ approach?
The ‘stop-go’ approach failed to solve underlying economic problems and led to the emergence of ‘stagflation’ by the mid-1960s.
What were the Labour government’s attempts to improve the economy from 1964-79?
Labour attempted to improve planning and investment but failed due to ongoing inflation, unemployment, and slow growth.
What was the ‘National Plan’?
The ‘National Plan’ was devised by George Brown to stimulate growth but failed due to lack of resources and authority.
What happened to the value of the pound under Harold Wilson?
In November 1967, Wilson was forced to devalue the pound from $2.80 to $2.40 after failing to borrow his way out of economic trouble.
What was the public perception of the pound’s value after devaluation?
Wilson attempted to reassure the public that the ‘pound in your pocket’ was worth the same, but he suffered a huge loss of credibility.
What was the economic situation in Britain between 1918 and 1939?
Those reliant on traditional industries fared worse than those with a growing service sector or newer industries. Traditional industries struggled due to loss of market share during the Great War and competition from more efficient foreign production.
What was the unemployment rate in Britain during the Great Depression?
Unemployment never fell below a million between 1921 and 1940, rising to almost three million in 1932 and 1933.
What was the extent of long-term unemployment in 1932?
By 1932, 16.4 percent of those in need of relief had been jobless for over a year, equating to over 400,000 people.
What was the government’s stance during industrial disputes in this period?
The government sought to provide help for the unemployed but generally sided with employers during industrial disputes.
What triggered the General Strike of 1926?
Miners felt underpaid despite wartime wage improvements, and after a failed promise to maintain wages, they called for a strike.
What was the role of the Miners Federation of Great Britain (MFGB)?
The MFGB represented the interests of over a million miners and was a formidable union.
What was the outcome of the General Strike?
The General Strike failed due to lack of coordination among workers and government preparedness.
What was the Sankey Commission?
A government group set up to investigate wages, working hours, and nationalisation in the coal industry, led by Sir John Sankey.
What was the Samuel Commission?
A group set up to address the stand-off between mine owners and the MFGB, led by Sir Herbert Samuel.
What was the Trades Union Congress (TUC)?
Founded in Manchester in 1868, the TUC was a union of unions, strengthening small unions when they worked together.
What was the role of Churchill during the strike?
Churchill was put in charge of a government newspaper, The British Gazette, which turned public opinion against the strike with its hostile propaganda.
What did the TUC do to limit violence during the strike?
The TUC did as much as it could to limit violence. There were some clashes between volunteers and those on strike but no one was killed.
How much did the TUC spend on the strike?
The strike was hugely expensive for the TUC: it spent £4 million of its £12.5 million total strike fund.
What was the Samuel Memorandum?
The Samuel Memorandum was an unofficial settlement offered by Herbert Samuel, proposing a National Wage Board, wage subsidies, and no pay cuts before restructuring of mining.
When did the TUC call off the strike?
The TUC accepted the Samuel Memorandum and called off the strike on 12 May.
What were the consequences of the strike’s failure?
The failure of the strike led to the passing of the Trades Dispute Act in 1927, making sympathetic strikes illegal and exposing unions to financial damages.
What impact did the strike have on trade union membership?
Many men became disillusioned with trade unions, particularly the TUC, leading to a decline in membership to a low in 1932 before recovering.
How did the strike affect working-class political engagement?
Working-class men began to look to the Labour Party for political solutions in parliament rather than direct action.
What was the long-term memory of the strike for industrialists and politicians?
The strike was a powerful memory for many industrialists and politicians who sought better industrial relations in the decades after 1926.
What trend was observed in the total number of people working from 1918 to 1997?
The total number of people working increased despite rises in school-leaving age and a fall in the average age of retirement.
What industries saw huge falls in the number of workers despite government efforts?
Miners and shipwrights.
What type of job experienced marked growth until the 1980s?
White-collar jobs.
What fueled the growth of white-collar work?
Higher disposable income increased demand for goods and services.
How did the balance of employment impact industrial relations?
Managerial structures in white-collar firms were less distant, better mutual understanding and communication, less likely to be unionised.
What effect did the decline of blue-collar jobs have on women’s work opportunities?
Gave more work opportunities to women.
Define a white-collar worker.
A worker who performs administrative, managerial, or professional work, often in an office.
Define a blue-collar worker.
A worker who performs manual labor.
What was the ‘marriage bar’?
A restriction that meant most married women stopped work to look after the home and children.
What limited opportunities for women in the workforce until the 1980s?
Most jobs were in traditionally male blue-collar areas and limited educational opportunities.
What percentage of doctors were women in the 1960s?
15 percent.
What percentage of lawyers were women in the 1960s?
5 percent.
What factors contributed to the gradual increase of women in the workplace post-World War II?
- The Second World War fueled female desire to work
- Changes in education provided more opportunities
- Increase in white-collar jobs deemed suitable for women
- Social changes in the 1960s and 1970s
What significant strike occurred in 1968 that promoted female working opportunities?
A successful strike by female sewing machinists at Ford car plants.
What were the three Acts passed in the 1970s to stop discrimination against women at work?
- The Equal Pay Act
- The Sex Discrimination Act
- The Employment Protection Act
Fill in the blank: The Equal Pay Act aimed to ensure that men and women received equal pay for ______.
equal work
True or False: The Sex Discrimination Act protects workers from discrimination based on gender.
True
What was one impact of the Ford strikes on legislation?
Catalyst for the passage of Acts designed to stop discrimination against women at work.
What was a key challenge for women in the workplace before the 1970s?
Employers were not prepared to hire mothers.
What was the trend in the percentage of women in the workforce from 1951 to 1981?
Increased from 31% in 1951 to 40% in 1981.
What was the percentage of married women in the workforce in 1981?
62%
What was the main role of women in the 20th century?
Women’s roles were primarily centered around home and family life, often conflicting with other moral and professional aspirations.
What did the Equal Pay Act of 1970 establish?
The Equal Pay Act called for ‘equal pay for equal work’, but it remained voluntary for businesses until 1975.
Many employers claimed that the work men and women did was different, so the law did not apply.
What did the Sex Discrimination Act of 1975 accomplish?
The Sex Discrimination Act made it illegal to treat workers of one gender less favorably than those of the other gender.
In practice, it was difficult and expensive for women to bring their discrimination claims to court.
What rights did the Employment Protection Act of 1975 provide?
The Employment Protection Act made it illegal to sack women because they were pregnant and gave them rights to maternity pay and job return.
What is the ‘glass ceiling’?
The ‘glass ceiling’ refers to the upper limit on women’s promotion in the workplace, which still limits female equality with men today.
What significant change occurred in British industrial relations post-WWII?
The shift from high unemployment to wartime full employment strengthened the bargaining position of trade unions.
What was the impact of the 1950s inflation spike on industrial relations?
Governments faced the dilemma of keeping unions happy or imposing wage and price controls, leading to ineffective methods to limit pay demands.
What was Barbara Castle’s 1969 White Paper ‘In Place of Strife’?
It was a proposal that aimed to undermine union strength but was never implemented due to its unpopularity.
What triggered the escalation of industrial action in the 1970s?
Wages failing to keep up with prices for the first time since WWII led to increased industrial action.
What was the outcome of the National Union of Miners’ strike in January 1972?
The government declared a state of emergency and a ‘three-day week’ after the miners’ strike forced a significant pay rise offer.
The strike was called off after the government offered a 27 percent pay rise.
What was the significance of the 1973 oil crisis on wage demands?
The 1973 oil crisis led to even higher wage demands, including a further 35 percent increase from the NUM.
What was Callaghan’s pay increase limit in 1978?
Callaghan was determined to stick to a five percent limit on pay increases in 1978.
This was enforced by a vague ‘Social Contract’ with the unions.
What event in November 1978 embarrassed the government?
A strike at Ford car factories led to a 17 percent pay rise.
This event showcased the challenges of enforcing the pay limit.
What happened on 3 January 1979?
Oil tanker and lorry drivers went on strike, with tanker drivers quickly winning a pay rise and returning to work.
The lorry drivers held out for six weeks, causing significant disruptions.
What was the impact of the lorry drivers’ strike?
The lorry drivers refused to deliver goods and picketed ports, leading to panic-buying as people feared food shortages.
What occurred on 22 January 1979?
1.5 million public sector workers went on strike, shutting down schools, museums, libraries, and affecting hospitals.
Hospitals could only treat emergency cases due to the lack of staff.
What was the situation in Liverpool during the strikes?
Gravediggers went on strike, resulting in 225 corpses stored in a factory awaiting burial.
What was the government’s response to the strikes on 14 February?
The government accepted defeat and allowed pay increases of 10-15 percent.
What was the public’s reaction to the strikes by mid-March?
The public was frightened and disgusted by the strikes, leading to a belief that unions were too powerful.
What promise did Margaret Thatcher make during the 1979 election?
She promised to limit the power of the unions.
What was the outcome of the May 1979 general election?
Margaret Thatcher won the election, reflecting public support for her promises.
