Questions 51-75

Question 1

What was the popular name coined by the historians for the period of Conservative government between 1951 to 1964

Answer 1

13 Wasted Years

Question 2

Explain the meaning of the term Butskellism

Answer 2

Term created from combining the names of RAB Butler, conservative chancellor of exchequer with Hugh Gaitskell a leader of Labour Party, describes a consensus in economic policies between two leading political parties.

Question 3

What does the term stop-go describe?

Answer 3

economic policies used by Conservative government in the period 1951-1964.

Question 4

What actions of the government are associated with the go phase within the economy?

Answer 4

The government would lower the taxes and interest rates on loans to encourage more spending within economy and provide boost to the industry and secure better employment rates.

Question 5

What actions of the government are associated with the stop phase of the economy?

Answer 5

The government would raise interest rates and increase taxes, it often would also use restriction in access to imported materials in order to control balance of trade.

Question 6

What were the main challenges faced by the British economy during the period between 1951-1964?

Answer 6

Britain was increasingly less competitive than other European countries, British companies were not meeting the demand on the domestic market, as the government tried to maintain high value of the pound British products were more expensive than those from other countries, most money was invested abroad because people did want to risk investing in Britain with constantly changing interest rates, no long term investment or improvement was made in Britain, negative balance of trade.

Question 7

Define term balance of trade.

Answer 7

The difference between countries imports and exports.

Question 8

What were the main downsides of using stop-go policies for British economy?

Answer 8

It offered no long-term economic strategy. It caused stagflation (stagnation and inflation) at the same time and discouraged long term investment due to volatility of interest rates. This meant British industry would be unlikely to modernise within this period. A lot of perceived affluence was based on credit rather than actual ownership.

Question 9

How much was the overall wage rise achieved within the period of 1951 to 1964?

Answer 9

For the average male worker increase was from £8.30 in 1951 to £18.35 in 1964. Real wages (the purchasing power of earnings set against prices) rose by 2.2% 1951-55, 2.9% 1955-60 and 4% 1960-64.

Question 10

Define term affluence.

Answer 10

Referring to an abundance of property and wealth

Question 11

What was the main criticism of implementing go phase during years 1958 and 1959?

Answer 11

Growing demands for products and their prices led to higher wages demands, met by government and this led to inflation. Thorneycroft wanted to implement stop phase byt was overwritten due to coming elections. He resigned in January 1958.

Question 12

Define term stagflation

Answer 12

A combination of inflation and stagnation at the same time. The industry is in decline and yet there is growing inflation creating worst of both worlds.

Question 13

What was the percentage of yearly government spend on defence under Conservative government?

Answer 13

10% of annual budget.

Question 14

In what year did the rationing end in Britain?

Answer 14

1954

Question 15

What was the Conservative aim for the amount of houses built each year in 1950s?

Answer 15

300,000 houses per year.

Question 16

Who was in charge of Housing Ministry between 1951 to 1954?

Answer 16

Harold Macmillan

Question 17

Why was Britain in 1950s sometimes described as a property owning democracy?

Answer 17

A society in which as many people as possible are encouraged to buy property, a principle that owning a property is an essential part of democracy.

Question 18

What were the two main aims for the Keynesian economic policies?

Answer 18

The government should use its budget to invest in the economy and provide full employment. Budget deficit in this scenario was not a problem.

Question 19

Which 2 years saw the highest unemployment during the period of 1951 to 1964?

Answer 19

1959 with 621,000 and 1963 with 878,000 people unemployed

Question 20

Which 2 years saw the lowest unemployment during the period of 1951 to 1964?

Answer 20

1955 with 298,000 and 1956 with 297,000 people unemployed

Question 21

What evidence suggests that there was period of genuine affluence in British society in the period 1951 to 1964?

Answer 21

There was a genuine rise in real wages and availability of credit meaning that people could afford more than ever before, on average wages rose 72% between 1951 to 1963, even the poorest within society had access to benefits previously not experienced, the number of cars rose from under 3 million to 7 million within the period and TV sets from 340,000 to 13 million. Working week was reduced from 48 hours to 42. Quality and access to housing hugely improved during the period and most people had access to so called mod cons like central heating, hot water and indoor toilets.

Question 22

What evidence suggests there were limits to affluence during the period 1951 to 1964?

Answer 22

There was significant rise in number of unemployed people towards the end of the period; most of the goods were bought using hire purchase calling to question actual purchasing power of middle and working classes. The government wanted to avoid strikes and so it gave in to trade unions wage demands meaning the unions became increasingly powerful.

Question 23

What are the main criticisms of Macmillan’s economic policies?

Answer 23

The policies were mainly focused on improving standard of living rather that creating economic growth and rise in production, therefore did not resolve some of the key issues experienced by British economy, for example GDP in Britain rose only by 2.3% between 1951 to 1964 whereas in France it rose by 4.3%, 5.1% in Germany and 5.6% in Italy.

Question 24

What is deflation?

Answer 24

Deflation is a process where prices of consumer goods and services fall and money increases in value. Longer periods of deflation can lead to higher unemployment, a decrease in demand, and a reduction in economic activity.

Question 25

Which of the industries was growing during the period of 1951 to 1964?

Answer 25

The Services Industry