Rising cost of WS main reason for challenges ?

Question 1

P1
P2
P3

Answer 1

Increasing cost- YES
Changing attitudes- NO
Economic context- NO

Question 2

P1 evidence

Answer 2

1. Reasons for rising cost -
   - Post war baby boom
   - life expectancy
2. cost of unemployment, NHS, Education
   = deficit £800 million 70’s

Question 3

unemployment stood at what in 1972

Answer 3

6%

Question 4

when was the post-war baby boom and what did this mean?

Answer 4

1940’s

Cost of childcare and education increase

Question 5

how did life expectancy change?

Answer 5

1941-70

W- 64 to 74
M- 59 to 69

Question 6

increase life expectancy increased the cost of what specifically

Answer 6

elderly care and pensions= greater burden on NHS

Question 7

who argued that the government had to curb spending and reduce welfare provision?

Answer 7

right wing

Question 8

what % of GDP were unemployment benefits in 1939

Answer 8

0.6%

rose to 8.8% in 1970

Question 9

How much had the cost of NHS risen to in the GDP?

Answer 9

rose to 4.5 %

well above the target of 3%

Question 10

why did the cost of the NHS increase?

Answer 10

expansion of services

growth of NHS staffing

1948-79 spending on drugs rose by 250

spending on technical staff rose by 300%

Question 11

what was the main consequence of high spending?

Answer 11

worsening of Britains Deficit which reached £800 million in the 70’s

Question 12

P2 evidence

Answer 12

1. Influence of Hayek -WS= dependency, inefficiency, inflation, budget
   deficits
   2.Thatcher

Question 13

in the 1940’s what was the dominant theory that underpinned WS

Answer 13

Keynesian economic theory

1970’s increasingly challenged

Question 14

who did Austrian economist Hayek influence?

Answer 14

Conservative party

Question 15

What did Hayek argue about WS?

Answer 15

• dependency
• inefficiency
• economic issues e.g. inflation, budget deficits

Question 16

what did Hayek’s ideas lead to the resurgence of?

Answer 16

right-wing ideas of ws

‘rugged individualism’

‘Laissex faire’

Question 17

what 2 main things did Thatcher believe in?

Answer 17

Hard work

self reliance

Question 18

Thatcher brought an end to what?

Answer 18

post-war consensus

Question 19

Thatcher had promised to end what and vowed to cut what?

Answer 19

• High gov spending
• cut taxes

= honest hard-working Britons could keep more of their hard-earned wages

Question 20

what did Thatcher emphasize rather than collectivism?

Answer 20

individualism

Question 21

what did ws suppress according to Thatcher?

Answer 21

personal ambition
aspiration
self-improvement

Question 22

what did dependency culture perpetuate according to thathcer?

Answer 22

perpetuated poverty

Question 23

what was a key indication that public attitudes to welfare had changed?

Answer 23

Thatchers landslide victory 1979

Question 24

who did thatchers ideas appeal to?

Answer 24

growing upper class

Question 25

P3 EVIDENCE

Answer 25

E1: ‘sick man of Europe’s UK struggled to compete

E2:L and C forced to restrict WS spending

Question 26

Why was Britain known a the sick man of Europe? in 60’s

Answer 26

Exports fell
struggled to compete globally
unemployment rising

Question 27

Many began to question if Britain could afford…

Answer 27

high levels of welfare spending

Question 28

Main consequence of ws

Answer 28

inflation steadily increased

16% in 1974

25% in 1975

Question 29

expansive ws lead to

Answer 29

increase budget deficit

topped 1 million by late 1970s

Question 30

in total how much was Britain spending on welfare by 1979

Answer 30

7% OF GDP by 1979

Question 31

how did the demand for Welfare change

Answer 31

increase as demand for NHS grew

Question 32

Why were Labour and C forced to restrict WS

Answer 32

context

economic stability

Question 33

What did Heath enter the office with inentions of doing? what did he prioritize?

Answer 33

a radical break from Keynesian consensus that had developed in 1945

economic management and fiscal responsibility

Question 34

What did Heath end commitment to?

Answer 34

maintaining full employment

Question 35

what did Heath implement in stimulate consumer spending?

Answer 35

tax cuts

extensive spending cuts( council homes, education, milk)

Question 36

how much were Heaths cuts worth in his first budget?

Answer 36

£300 million

Question 37

who else was forced to make deep cuts to WS? and did this indicate?

Answer 37

Wilson

Callaghan

extent of economic pressures facing Britain

Question 38

Wilson asked for $3 billion loan from who and when? what were the conditions?

Answer 38

1976

International Monetary fund

Major cuts to expenditure

Question 39

What was the impact of the cuts wilson made?

Answer 39

Devestating

unemployemtn doibled to 1.4 million in 1979