pneumonics economy 1951-7 Flashcards
RICMIDE
RAB Butler’s 1951 memorandum
- Rationing ended,
- Interests rates up to discourage demand and decrease borrowing
- Credit restricted,
- Ministers’ salaries cut,
- Imports reduced
- Denationalisation of steel and iron
- Employees reduced in civil service
When did food rationing finally end?
July 1954
What evidence is there for a post-war baby boom?
The population grew by 5% in ten years (1951-1961)
What was the income per head like in Britain compared to other countries?
Higher income per head than everyone except US
What proportion of the workforce was in the service industries by 1960?
20%
How could the government claim full employment? How many were unemployed?
Under 1% of the population, or 200,000
What years were the stop years? What years were the go years?
1951-2 = stop
1953-5 = go
1955-9 = stop
What budget devalued RAB Butler’s reliability as an economist?
The pots and pans budget
What budget helped the conservatives win the election in 1955? How much did it cut in taxes?
- £134 million of tax cuts, helping improve middle class economy
How did incomes rise as opposed to output between 1948 and 1956?
Incomes rises by 75%, output rises by 28%
How many houses did Macmillan build in 1954?
354,000
How much did the government reduce the balance of payments defecit after labour?
- £700 million deficit in 1951
- £259 million surplus in 1952
What did Thorneycroft say about the economy?
“we have slithered from one crisis to another”
