1951-1964 Economics (Unit 1, Topic 2) Flashcards
Post war boom, Balance of payments, Stop-go policies.
What was Rationing like in the post-war boom?
Introduced due to the rising food prices, the value of goods were based on peoples nutritional needs and although it was unpopular people became healthier. It would end in July 1954
What were Wages like in the post-war boom?
Economic growth and low unemployment brought £134 million city taxes, as people had a higher income per head
What was Birth Rate like in the post-war boom?
Acceleration of birth right after WW. 51 million in 1961 with it being 5% ( 2 million) more than 1951
What was Trade like in the post-war boom?
High levels of earnings from exports and investments
What was Employment like in the post-war boom?
1955 full employment with only 200,000 or less than 1% of the workforce being unemployed. 5 million working in the service industries
What were the New Industries like in the post-war boom?
Huge expansion in the electrical and engineering work. Traditional occupants fell during this period but service industries grew significantly
What were the Economic Problems?
Manufacturing- Difficult to persuade trade unions to increase trade to increase wages. Larger consumer demand, they did not encourage manufacturers to increase their export trade which would help bolster the export industries
Economic Policy- Macmillan’s chancellor wanted to increase wage limit and to cut the money supply. Other ministers like Ian Macleod wanted one nation conservatives
What is Stop Go Economics?
Stop Economics -Imports exceed exports and balance of payments crisis- Government controls high interest rates and wage freezes-Demand falls- Output decreases
Go Economics- Controls removed- Increase in demand- Rising Imports
Why was Manufacturing difficult after the post-war boom?
It was difficult to persuade the trade unions to increase trade. Larger consumer demand, they did not encourage manufacturers to increase their export trade which would helping bolster the export industries
What was Macmillan’s Economic Policy?
Macmillan’s chancellor wanted to increase wage limit and to cut money supply. Other ministers like Ian Macleod wanted a one nation conservative
Great Depression?
The economic collapse of multiple countries
Nationalisation?
State ownership of key industries
