Postwar Consensus Flashcards
1
Q
Postwar Consensus (3)
A
- Define consensus – Kavanagh – the continuation of policy between governments.
- More appropriate than other definitions of consensus which concern the willingness to agree with existing policy since the introduction of policy has a tangible impact on the population and is more feasibly analysed than ideologies, which politicians can and often do deviate from. Thus easier to distinguish between consensus and non-consensus periods.
- 4 main policies: public, industrial, macroeconomic, and foreign & defence policy.
2
Q
Public Policy Provision (3)
A
Welfare State (median voter), NHS, Education
3
Q
Welfare State (5)
A
- Founded by the Liberals in the early C20th, in part through the work of Beveridge.
- Churchill had been involved as government minister, then as Chancellor of the Exchequer.
- Hardship endured during the war –> large common ground amongst voters after 1945, who were in favour of greater welfare support and full employment.
- Represented a shift of the median voter towards the centre left (social security + employment), which aligned closer with Labour’s values.
- This, coupled with Churchill running on personality vs. Attlee’s clear transformational vision, led to Labour’s crushing victory in 1945.
4
Q
NHS (5)
A
- The Labour government managed to carry out most of its promises during their time in office – Beveridge report of 1942 was finally acted upon in 1946, with the introduction of the National Insurance Act and National Health Service.
- NHS provided free healthcare to all, irrespective of income and wealth, paid for via taxation.
- Crucially, the subsequent Conservative governments all adopted these two acts.
- Despite commissioning the Beveridge report himself, Churchill was highly unreceptive to the report’s propositions (Liberal background), and thus never acted after 1942.
- However, in 1951, he finally accepted the importance of such policies, forming the basis of a consensus between the parties.
5
Q
Education (5)
A
- In 1944, the Education Act was passed – education would be free until age 15.
- Policy was maintained by Attlee’s Labour and Churchill’s Conservative government, and there was no major change until the 1960s.
- In the Labour government of the 1960s, there was increasing debate in the Labour party about the ethicality of the system, notably the requirement of an 11+ exam to enter secondary schools.
- Thus, in 1965, Wilson scrapped the exam and the tripartite system, replacing it with a unitary Comprehensive education system.
- Conservatives were initially split on this issue but, when they came to power in 1970, Heath and Thatcher decided it was electorally favourable to continue this policy – ANOTHER AREA OF CONSENSUS
6
Q
Industrial Policy (1)
A
(Nationalisation)
7
Q
Nationalisation (7)
A
- In true Labour style, upon being elected, Attlee began his programme of nationalisation, as per Clause IV of the Labour Party constitution.
- However, the cost of nationalisation (especially given a war-torn, bankrupt economy) meant that Attlee compromised on full nationalisation and only nationalised 20% of British industry
- Conservatives were not opposed to some nationalisation, such as of the coal and railways (both of which were loss makers), but starkly opposed nationalisation to the iron and steel industry, since these were profitable - but Labour majority meant that the 1949 Iron and Steel Act was passed.
- HOWEVER, upon the Conservative’s return to power, both Iron and Steel de-nationalised.
- Nevertheless, majority of the ‘mixed economy’ was maintained, highlighted through the Conservatives’ publication of the Industrial Charter in 1947 (also protected labour rights)
- Labour government of the mid 60s then re-nationalised the iron and steel industry once more, which proved to be one source of contention.
- Generally, however, CONSENSUS over nationalisation in this period.
8
Q
Macroeconomic Policy (2)
A
Keynesian Theory, Stagflation
9
Q
Keynesian Theory (6)
A
- Consensus in this period about the appropriate macro-economic policy to pursue, namely that of Keynes – aimed to maintain full employment by fiscal demand management.
- New – prior to the war, the dominant theory was neo-classical.
- Due to the horror experience of exceptional unemployment in the Depression, governments were terrified that unemployment would return after military demand faded.
- Use of demand management proved successful; in fact, there existed labour shortages until there was much immigration from Britain’s empire.
- Britain’s recovery going so well that when Churchill came to power once more, his chancellor, Butler, continued the policies of Gaitskell so closely that the Economist coined the term ‘Butskellism’ to refer to it.
- The economy was recovering, debt was being repaid and unemployment was low all the way till the early 1960s.
10
Q
Stagflation (9)
A
- Hit in mid-1960s which Keynesian macroeconomic policy could neither explain or ‘cure’.
- Tried a ‘stop-go’ approach: expansionary to stimulate the economy followed by contractionary to choke off the inflation generated was employed but when this failed, the Conservatives went down with it.
- Underpinning stagflation was a productivity lag in the UK – when Wilson came to power, his attempt to fix it was through his national plan, which would transform the economy by employing state-of-the-art technology in industry.
- This failed –> return to stop-go policy.
- But this Keynesian demand management policy had no beneficial effects, in fact, only exacerbated the problem because the expansionary phase of the policy increased demand for imports and inflation, leading to the BoP deficit in the fixed exchange system that caused the devaluation of the pound, what Callaghan, Chancellor of Wilson’s government vowed not to happen.
- Unemployment and inflation continued to grow due to productive inefficiencies.
- Producers increased prices, causing TUs to demand higher wages, generating a wage-price spiral.
- Keynesian theory had two conflicting policy prescriptions to address unemployment and inflation, but not at the same time.
- The OPEC action of the 1970s caused further stagflation and led to the end of Keynesian economics as the predominant paradigm.
11
Q
Foreign Policy (5)
A
- Relations between UK and USA constrained politicians’ freedom to change foreign policy.
- UK was heavily dependent on the US during war for defence requirements and post-war for threat from SU.
- Thus, British foreign policy wasn’t really up to its politicians – simply aimed at maintaining relations with US over all else
- e.g. declined joining the European Defence Community and the Western European Union (mid-1950s) because they would always choose US rather than Europe (not really an option)
- FOREIGN POLICY WAS RELATIVELY CONSISTENT = CONSENSUS
12
Q
Colonial Policy (7)
A
- Despite the US obviously being the world’s superpower, they chose not to project this onto the world.
- Up until 1956, Britain had been subject to an ‘illusion of grandeur’ – caused them to believe that they had the power to act independently on colonial issues.
- Initially, this was fine, since although the US were opposed to colonialism generally, when Attlee used the post war US loan to finance its navy which policed its Empire over rebuilding infrastructure, it was consistent with the Truman Doctrine since British colonial possessions kept Soviet influence out.
- But, when Egypt’s President Nasser nationalised the Suez Canal in 1956 (which was vital to Britain’s communication lines with its Empire), the French and British (Eden) organised a vast armada to retake control, without consulting the US
- The US were furious, concerned that Nasser would approach the SU for assistance, thus spreading Soviet influence and ordered Britain to withdraw, with the threat of collapsing the value of the Sterling on Forex markets if not.
- Britain withdrew, its empire was ‘voluntarily’ disbanded in 1960 (in part due to acceptance of US superiority) and the illusion was dispelled.
- Discontinuity of policy –> NO CONSENSUS.
13
Q
Defence Policy (6)
A
- To preserve the UK’s strategic importance and to increase its bargaining power with the US, Attlee commissioned for the atomic bomb programme to begin –> continued under Churchill, resembling a consensus.
- But, in the years following, Britain accepted that the costs meant the British economy was incapable of sustaining such programmes. Its nuclear weapons policy was then once more reliant on purchasing from the US, with their Polaris Programme.
- Plans to upgrade it were planned since the 1960s, only happened under Thatcher.
- Other aspects of national defence were purchased from British companies, however.
- This meant that Britain was not subject to political influence from the governments of other countries supplying defence equipment.
- DISCONTINUATION OF POLICY = NO CONSENSUS.
14
Q
Reasons for Consensus (5)
A
Attlee and Churchill
War
Ideological beliefs
Voter-led consensus
Diminishing global power
15
Q
Attlee and Churchill (4)
A
- Despite not initially agreeing with the Beveridge report, Churchill eventually accepted its importance and continued the polices of Attlee.
- Furthermore, he was against nationalisation, but (generally) kept Labour policies, and later Conservative leaders like MacMillan embraced it
- Churchill and Attlee arguably were responsible for fostering greater ties and relationships cross party, through their joint role in the war.
- Attlee himself said that in discussions with colleagues of other parties he found ‘on many matters more agreement than you would expect’.
