Key Economic Individuals and UK Growth

Question 1

What form of running the economy was sustained in this era?

Answer 1

Stop-Go economics

Question 2

How many Chancellor’s of the Exchequer did Macmillan have in 6 years?

Answer 2

4

Question 3

Name the 4 Chancellor’s and when they were in office

Answer 3

Thorneycroft - 1957-8
Heathcote-Amory - 1958-60
Lloyd - 1960-2
Maudling - 1962-4

Question 4

What is budget politics?

Answer 4

Budgets made pre-election to get more votes

Question 5

What is an example of a pre-election budget in this era?

Answer 5

Heathcote-Amory’s 1959 Budget cutting taxes

Question 6

What would the 1959 election budget cause?

Answer 6

It would cause more inflation when inflation was already high

Question 7

What was the result of the 1959 Budget?

Answer 7

More spending so higher inflation

Question 8

What is Stagflation?

Answer 8

When inflation increases but industry productivity does not

Question 9

What did Stagflation point to?

Answer 9

The difficulties of managing a modern economy

Question 10

Which country had the lowest GDP growth rate in Western Europe?

Answer 10

Britain

Question 11

What was Britains average GDP Growth rate from 1951-64?

Answer 11

Around 2.5%

Question 12

Why was Britain’s economic performance weak at the time of the mid-late 1950s?

Answer 12

Heavy defence expenditure

Question 13

How much money did Britain spend on defence by 1964? What % of their GDP was this?

Answer 13

£1.7 billion spent which was 10% of their GDP

Question 14

How much of Britain’s R&D Spending went to defence?

Answer 14

34.5%

Question 15

How much of America’s R&D spending went to defence?

Answer 15

40.6%

Question 16

How much of France and West Germany’s R&D spending went to defence?

Answer 16

France - 4.3%
West Germany - 5.1%