The Affluent Society (1951 - 1964) Flashcards
Affluence 1951 - 1964
- Average weekly earnings = £7.50 (1950) to £18 (1964)
- Unemployment 1948-70 = Less than 2%
- Consumer expenditure 1952-64 = Up 45%
- Private cars = 2.5 mill (1952) to 5 mill (1959)
- Macmillan speech, July 1957, ‘Never had it so good’
- Home ownership = 1964, 44%
- Food rationing ends 1954
- 1,200 miles new or upgraded road 1957-63
- 600,000 people a week at Butlins in 1950’s
- 1.7 mill new houses built 1951-64
- Greater availability of financial credit
Describe the labour policies that the Conservatives adopted for 1951
Adopted labour policies:
- Welfare State
- Full Employment
- Mixed economy
Describe Labour divisons 1951 - 1964
- Bevan resigns in 1951 over NHS charges
- 63 MP’s abstain from debate about H-Bomb, against party orders
- Party divided by Nationalisation (Crosland, Bevan & Morrison)
- Divisions between Gaitskill & unilateralists over CND
- 57 Bevanites vote against party rearmament against orders to abstain
Economic policies 1951 - 1964
- War time controls abolished 1953 - 1954
- National income, 1950 - 1955 = Up 40%
- Imports, 1951-late 50’s = Up to 29%
Describe the political factors that lead to the Conservatives downfall in 1964
- Satire in the arts
- CND (large protest Sept 1961 about Polaris in Holy Loch)
- France vetoes Britains application to the EEC
- Night of the Long Knives
- Labour revival begins 1958
- Vassal Affair (March 1963)
- Profumo scandal
Describe the social factors that lead to the Conservatives downfall in 1964
- 1957 Rent Act (allowed landlords to raise rents and benefitted middle class)
- Racial tensions (immigrants, 1958 Notting Hill Race Riots, 1962 Commonwealth Immigration Act)
- Educational inequality (Tripartate system, lack of higher education)
Describe the economic factors that lead to the Conservatives downfall in 1964
- The failure of Nicky, Neddy and the pay-pause
- The economy under Maudling and Lloyd
- Conservatives leave office October 1964, leaving a government deficit of £750 million
Describe the labour resurgence that lead to the Conservatives downfall in 1964
- The decline of the Bevanites from 1955
- Gaitskill begins to reunify the party (1955-1963)
- Harold Wilson (leader of the labour party 1963 - 1964) had a much more popular appeal
- 1961 ‘Signposts for the Sixties’
- 1964 Labour election campaign
Describe the 1961 ‘Signposts for the Sixties’
Labour policy document confidently outlines; the role of economic planning, the need to connect scientists and technicians and the link between planning, technological development and growth.
Describe the 1964 labour election campaign
- ‘The New Britain’
- Economic planning for growth
- State support for Science and Technology
- Comprehensive schools and the expansion of higher education
Describe the economy under RAB Butler (1951-1955)
Stop:
- Cuts on imports, credit, travel allowances, food subsidies and meat ration
- By 1952, bank rate = 2-4%
- Reduced balance of payments
Go:
- 1953-1954, war time controls and food rationing removed
- April 1955, £134 million tax cuts (led to acute inflation and slump in balance of payments)
Summary:
- Great short term success, no long term plan
- By 1955 = near full employment, low inflation, no balance of payments problem, low taxes, rising prosperity
- 1950-1955, national income increased 40%
Describe the economy under Harold Macmillan (1955-1957)
Stop:
- Bank rate increased to 5.5%
- Cut food subsidies
- Reduced public investment
- Introduced Premium Bond scheme
- Added VAT to tobacco
Go:
- Reduced income tax
Summary:
- Successfully stops economy after inflation but reduces affluence
- Replaced Butler in the December reshuffle
- In summer 1957 there was a sterling crisis
Describe the economy under Peter Thorneycroft (1957-1958)
Stop:
- Cuts to public spending
- Bankrate increased from 5.5% to 7%
Summary:
- Fairly successful but doesn’t manage to completely stop the economy
- Wanted to cut £150 million from public services, Macmillan only allowed £100 million to be cut to prevent unemployment
- Thorneycroft, Powell and Birch resign in 1958 over this disagreement
- Revealed cracks in Macmillan’s cabinet
Describe the economy under Derick Heathcoat-Amory (1958-1960)
Go:
- By November 1958, bank rate cut to 4%
- 1959, standard rate of income tax goes from 43% to 39%
- 1958-1960, economy grew 6%
Summary:
- Conservatives won the 1959 election but there was now inflation and a massive balance of payments crisis
Describe the economy under John Selwyn Lloyd (1960-1962)
Stop:
- Bank rate increased to 7%
- Nicky, Neddy and the pay-pause (all fail)
Summary:
- Almost every attempt to stop the economy failed
Describe the pay-pause
- July 1961
- Abruptly froze pay increases for public sector workers
- Unfair since pay rises still available in the private sector
- Affected beloved nurses
- Could be ignored by powerful employers
- Failed
Describe the economy under Reginald Maudling (1962-1964)
Go:
- 1963 budget, cuts taxes by £300 million
- Economic growth rate = 4% in 1963 to 6% in 1964
- By 1964, exports 10% higher than 1961, imports 20% higher
- Unemployment in 1963 = 2.6%
Summary:
- Attempted ‘dash for growth’
- Failure that just caused further collapse
Describe Nicky
- National Incomes Commission
- A voluntary method of wage restraint
- Boycotted by the TUC
- Failed
Describe Neddy
- National Economic Development Council
- Failed
Describe some evidence of change to affluence and living standards
- Economy 1951 to 1964, grew 2-3% a year
- Unemployment below 2%
- Pre-war slums cleared and replaced by new towns (e.g Kirby and Harlow)
- Other affluence statistics
Describe some evidence of continuity of affluence and living standards
- ‘13 wasted years’
- Little encouragement of scientific, technical or managerial education
- Collages of Advanced Technology introduced but not given uni status
- School system virtually ignored (tripartite & 11+)
- Wealth creation and economic efficiency given low priority
- Little done to modernise industry
Describe some evidence of change to social class and the establishment
- Upper class began to include those in finance, commerce and manufacturing
- Middle class began to include managers, scientists, advertisers and salesmen
- Press coverage of Profumo affair showed decline in deference for the establishment
- Suez Crisis 1956 exposed lying and manipulation in the government
- The rise of the CND from 1958
- 1960’s satire boom
- Criticism in the arts
Describe some evidence of continuity of social class and the establishment
- Surveys throughout the 50’s and 60’s, consistently found that 2/3rds of the British public self-identified as working class
- The upper class was very focused on tradition, U and non-U speech, food, manners and customs
- Upper-class and government still dominated by old public-school boys
- 1960, still 600 butlers in Britain
- Class system remained very established
Describe some evidence of change to culture and criticism
1960’s satire boom:
- 1960 - Beyond the Fringe (play)
- 1961 - Private Eye (magazine)
- 1962 - The Week That Was (TV)
Criticism in the arts:
- 1956 - Look Back in Anger
- 1957 - Room at the Top
- 1958 - The Birthday Party
- 1958 - Saturday Night & Sunday Morning
- 1960 - This Sporting Life
- 1962 - A Kind of Loving