stop-go policies + problems Flashcards
in 1961 worries about the economy overheating forced the government to introduce a?
pay-pause - to hold down wage inflation
pay-pause meant the government had to?
ask for a loan from the IMF (international monetary fund)
economic problems facing the conservatives by 1962 included
-the balance of payments problem
-economics of ‘stop-go’
what was leaving Britain behind?
-economic growth in Europe, especially in West Germany
-trade with the empire and commonwealth not sufficient to keep up
what did Macmillian do?
-reversed his party’s previous policy and decided it was essential for Britain’s economy to be joined with Europe
what was the 1961 application a symbol of?
the sense of failure in bringing about economic modernisation
to address the symbol of 1961 application Selwyn Lloyd who was?
Macmillian’s third chancellor of the Exchequer
what did Selwyn Lloyd set up?
the National Economic Development Council (NEDC) known as neddy
NEDC consisted of
government representatives
academics
employers
trade unionists
-made responsible for long-term planning
what was added in 1962?
- a National incomes commissions (known as Nicky) to keep an eye on wages and prices
what acted as a serious setback for Macmillian; ‘s economic policies?
the rejection of Britain’s application to join the EEC in January 1963
What was published in the autumn of 1963?
the Beeching Report- published as a part of review into cutting public expenditure
what did the Beeching report reccomend?
-massive cuts in Brtian’s rail network
including the closure of more than 30% of the rail network -> provoking public outrage
what happened as a result?
hundreds of branch lines + thousands of stations axed causing fundamental social change, leaving many rural areas more isolated
the government was no longer
surfing on a wave of prosperity and economic success
