how successful was macmillan

Question 1

intro/summary

Answer 1

1. inherited party demoralised and dispirited after Suez
2. economy was booming
   cons extended their electoral lead
3. success most in first term (handling of economy)
4. 2nd term disappointment as economy began to over heat and engulfed by scandal

Question 2

economy

Answer 2

1. inherited post-Suez economy with a recent run on the pound and potential bankruptcy.
2. to win 1959 election Thorneycroft and Amory raised bank rate to 7% (to bring the inflation under control) then let the economy go by lowering the base rate to 4% and cutting income tax to a post-war low of 38.75%
3. Expanded the economy and created a consumer boom.
4. Unemployment below 2% for most of period.
5. Economy grew by 2-3% per year.
6. Average wages rising at double the rate of prices. ‘Golden Age’ ‘Supermac’.
7. 2nd term failed to stem Britain’s economic decline. by 1964 Industrial production growing 10x as quickly in Japan and 4x as quickly in Germany.
8. World trade in manufactured goods fell from 25.5% to 13.9% under Macmillan

Question 3

political

Answer 3

1. leadership after Suez must be commended as he transformed a demoralised party who he feared only had six weeks left in office.
2. Passed off resignation of Thorneycroft and the entire treasury team as a ‘Little local difficulty’ and was a master of the commons.
3. Booming economy and consumer affluence he presided over allowed political success- 59 election victory.
4. 2nd term- Conservative party was clearly divided over the decision to apply for membership in the EEC and Macmillan was humiliated by De Gaulle’s veto in 1963.
5. increasingly looked like he was losing his grip on his cabinet. 1962 Night of the Long Knives highlighted by the sacking of a third member of his cabinet.
6. Spies and Sex scandals engulfed the government in final years. e.g. Profumo and Vassall Affair

Question 4

social

Answer 4

1. Succeeded in relation to welfare state spending 49->53%, unemployment less than 2%
2. 1.7 million New homes built by 1964- as promised in manifesto.
3. Failed to tackle deeper inequalities-
   1957 Housing Act criticised due to its encouragement of exploitation by landlords
4. failed to deal with the rising racial tension caused by West Indian Immigration in the 1950s an the Indian subcontinent in early 1960s
5. still inherent inequality in education