fcs- britain transformed Flashcards
First Past the Post (FPTP)
The name of the UK voting system
Used to elect Members of Parliament (MPs) to the House of Commons
Constituencies
The UK is currently divided into 650 areas of constituencies
The candidate who receives the most votes in the area is the first past the post and gets a seat in parliament
Majority Government
If a party wins over half the seats in an election (currently 325), they can form a minority government
Passing Laws in a Majority Government
Having a majority of politicians in parliament makes it easier to pass laws they want
The bigger the majority, the easier it is to pass laws
Coalition
If no party wins a majority, the biggest party may instead form a coalition
They team up with another party to gain a majority, but must find ways to work together
Coalitions- National Government
During times of crisis e.g. World War II, parties form a National Coalition made up of multiple parties to govern the country together
Minority Government
Sometimes when no party wins a majority, the biggest party decides to govern with a minority
They govern with a minority of politicians, and instead rely on other MPs to vote for their laws because they like them
Weak government
It is very difficult to govern effectively or for long with a minority government
Inflation
The general level of prices is going up
More money is needed to pay for goods (e.g. bread) and services (e.g. a haircut)
Economy
A small amount of inflation can be a good thing - it shows a country’s economy is growing
Too much is a bad thing as people lose trust in the value of money or strike for more pay
Unemployment Level
The amount of people actively seeking work who cannot find any
High unemployment levels signals a failing economy
Unemployment Level- Relevant Context
Britain saw high unemployment during the Great Depression - 2.5m by 1931
After WW2, all main political parties committed to achieving full employment
Currency
The British currency is the pound or sterling
Governments want to ensure their economy is doing well so people buy and trade with their currency
Currency Decline
Throughout our course, the pound will decline in value.
Governments were forced to de-value it: this made it worth less against other currencies like the dollar, but meant people who buy cheaper British goods
Trade Union
An organisation made up of workers from a certain industry or business (e.g. teachers may join a Teacher’s Trade Union)
They fight for workers’ rights and pay
Trade Union- Course Context
Trade unions typically are closely linked with the Labour Party, which was set up to represent the working class
Strike
A refusal to work organised by a trade union as a form of protest, typically to gain better pay or working conditions
Strikes- Economy
Strikes are damaging to an economy. Working days are lost and important products are not produced and services not provided
Striking was widespread in Britain in the late 1960s and 1970s and drastically weakened the power of government
WW1s loss of export markets
40% of Britain’s merchant shipping goods were sunk by German u-boats and other countries began to take British export markets
Proportion of Britain’s wealth from exports fell from ⅓ in 1914 to ⅕ in 1918
WW1s Loss of life
750,000 British men died in WW1
WW1s War Debt
Britain built up a war debt of £3.25 billion
Speculative Boom
People used their savings from the war to invest in:
Industries: The amount of shares bought increased to £384m worth by 1920
Luxury Goods: Items rationed during the war such as coffee, cigarettes and clothes
What caused the End of Speculative Boom
Industries couldn’t keep up with demand and the boom came to an end
The recession’s causes: Long-term underinvestment
Traditional Industries had not received enough money. Their machinery and production techniques were out of date.
Loss of export trade
Other countries stepped into British markets.
→Japan took British textile markets in India and South-East Asia.
1920-21 Poor industrial relations
DLG reduced workers’ hours in 1919 to prevent a strike. They got paid the same to produce less.
Unemployment in 1920-21
Rose to 12%
1920-21 Regional Divide
The gap between the heavy industries in the North and light industries in the South increased
1920-21 Retrenchment
The Liberals introduced the Geddes Axe (spending cuts of £87m)
1920-21 Politics
David LLoyd George and his party lost popularity
Impact of the Gold Standard on the pound
The pound was overvalued by 10% according to an economist called Keynes
Impact of the Gold Standard on Exports
Exports became overpriced and uncompetitive
Impact of the Gold Standard on Traditional Industries
Traditional industries were hit the hardest
Impact of the Gold Standard on Interest Rates
Interest rates rose
Impact of the Great Depression on Global Trade
Contracted by 66%
Impact of the Great Depression on British Economy
Shrunk by 5% in 1931
Impact of the Great Depression on British Exports
Reduced by 50%
Impact of the Great Depression on Unemployment
Rose to 2.5m (20% of insured workforce) by 1930
Economic condition 1932-37
- Industrial production rose by 46%
- Exports increased by 28%
- Unemployment fell from 17% to 8.5%
Economic Growth in late 1930s
Averaged 4% a year between 1934 and 1937
Regional recovery late 30s
Recovery was regional. Traditional industries did not recover as much as the light industries.
Impact of the national government coming off Gold Standard 1931
Helped Britain recover faster than other countries
The Special Areas Act 1934
Targeted areas of the country in need of help
the National Governments Public spending cuts
Cut public sector workers pay by 10% and reduced unemployment assistance
The national government’s Cut interest rates
This encouraged people to borrow and spend money → created more jobs.
Recession
Negative growth in the economy
Speculative boom
Caused by people investing heavily in businesses that they gamble will do well in the future.
Under investment
When not enough money is put into an industry in order to help it grow.
Retrenchment
The reduction of spending in a period of economic difficulty
Light manufacturing
typically produces goods targeted at the end consumer, such as clothes, shoes, toys, and electronics
Heavy manufacturing
on the other hand, focuses on producing goods that are used in producing other products, such as raw materials, machinery, and equipment
Conservatism
Commitment to traditional values and ideas. Opposed to change.
Sympathy Striking
Where workers go on strike in support of others already taking industrial action
Mass Picketing
Protests outside places were strikes are taking place, designed to prevent non-striking employees from getting into work
In the late 1920s, Global Trade…
Contracted (Decrease in size) by 66%
In the late 1920s, British Economy…
Shrunk by 5% in 1931
In the late 1920s, British Exports…
Reduced by 50%
In the late 1920s, Unemployment…
Rose to 2.5m (20% of insured workforce) by 1930
fiscal conservatism
Limited government involvement in the economy in the 1930s → cuts in public sector pay and unemployment benefits
a managed economy
An economy which is heavily regulated and planned by the government = lots of state intervention.
What measures were put in place to manage the economy in WW2?
Creation of government ministries → food, aircraft production etc
Increased military expenditure and production
Nationalisation
Industries moving from private ownership to state control
Balance of Payments Deficit
When a country is importing more than it exports (i.e. spending more than it makes)
Austerity
The period of ongoing rationing and shortages after WW2
Inflation
Prices go up. Therefore, your money is worth less
Devaluation
Reducing a currencies’ value. Exports go up as other currencies are worth more against the pound, but prices go up within the country
Mixed Economy
An economy with a mixture of nationalised and privatised industries
Keynesianism
The economic approach adopted after WW2. The government invests money in the economy to boost demand.
Retrenchment
When a government introduces spending cuts e.g. The Geddes Axe 1921
