the affluent society 1951-1964 Flashcards
L5 - Winston Churchill facts
Promoted one nation conservatives to important positions
Focused on international affairs such as Cold War
Didn’t support decolonisation
Had able ministers in cabinet
Who were some one nation conservatives in Churchill’s cabinet?
Florence Horsburgh - minister for education
Anthony Eden - foreign secretary
Rab Butler - chancellor of exchequer
When did Churchill resign?
1955 due to failing health
Continued as a MP until 1964
Replaced by Anthony Eden
Anthony Eden facts
Expert on foreign policy
Had opposed appeasement in 1930s so is trusted by public
Regularly deputised for Churchill
Limited experience on domestic policy
Wanted to keep influence over foreign policy and foreign secretary
Indecisive
Who were some one nation conservatives in Edens cabinet?
Harold MacMillan - foreign secretary until dec 1955, replaced Eden. Because chancellor of Exchequer
Selwyn Lloyd - replaced macmillan as foreign secretary, considered unsuited to the post
Rab Butler - chancellor of exchequer until Dec 1955, became deputy PM
Tension between macmillan and butler
What were the May 1955 election results?
Previous was in 1951. Snap election so Eden could be elected by public and not just merely a replacement of Churchill. Won 345 seats, 60 majority.
Why did Conservatives win the election?
End of rationing promised
Promised to build 500000 houses a year
Promised tax cuts
Labour divisions
1952 coronation, high morale, conservatives close to queen
What was the Suez crisis 1956?
October - November. Suez Canal had been under British control since 1937, shortcut to reach British colonies but Nasser nationalised the canal in July 1956. Eden took Britain into Egypt to recover the canal.
Why was the Suez Canal important to Britain?
Cut off 5000 miles from Britain to Asia
80% of ships using it were British
Egypt became a republic in 1953 under Nasser. Egypt was in the British empire until 1922 but troop were still there.
Britain agree to remove troops by canal by June 1956
Causes of Suez crisis
Gaza raid 1955 made nasser determined to strength Egypt’s army. US wouldn’t help so they made a deal with Communist Czechoslovakia
Britain and USA we’re funding the Aswan Dam but they pulled out
26 July 1956 - canal nationalised
What happened during the Suez Crisis?
Britain and France made a plan in secret to invade. Isreal on 29 Oct would land in Sinai and Britain and France would issue an ultimatum of to stop fighting or they’d interfere.
Israel accept and Nasser refuses
31 Oct, Britain and France invaded
5th Nov, British troops land at canal and are in control by 6th
600 Egyptians died soldiers, 1000 civilians died
Consequences of Suez Crisis
US and USSR condemned invasion, Britain and France are now 2nd rank powers
Britain economy crashed, USA blocked IMF loans unless they would cease fire, so is humiliating so Britain abort the mission.
When did Eden resign?
9th January 1957 due to ill health but his standing at home and abroad had been shattered due to Suez so he couldn’t have carried on.
Harold MacMillan took over.
Were the public anti-Suez?
Majority of the people supported Eden. Left wing newspapers lost readers like the Observer and the Guardian. Left wing politicians condemned. Public weren’t bothered by it or supporter. Polls on 11 November and 2 December 1956 said over 50% in favour of Eden. Some people liked it because it felt patriotic and Britain had a place in the world again.
L6 - what were some things MacMillan did in his leadership?
Night of the long knives 1962 - cabinet reshuffle
Living standards of trade unionists increased
Foreign policy, repaired relations with America, speeded decolonisation process, accepted Britain’s future was in Europe
Domestic policy, concerned with unemployment, neither capitalist nor socialist society, 300,000 houses a year, improved trade
One nation conservative
Period of affluence
Skilled in media
Appointed Butler as Home Secretary
What were the October 1959 election results?
Snap election 1 year before. Won 365 conservative, 100 majority.
Why did conservatives win election?
You’ve never had it so good…
Posters with happy family, dad works and comes home to his family not late. Family sits for a meal, no rations, Labour had rationing. Tv in house
Clean air act 1957, prevent smog of early 1950s
Homicide act 1957, restricted when death penalty would be imposed
Wolfenden commission, recommended that homosexual behaviour shouldn’t be a criminal act
Presents conservatives as a new, modern party who were in touch with the electorate
MacMillan and affluence
Macmillan’s premiership has often been described as having a feeling of affluence (having a great deal of money or wealth). People who lived through rationing now had a post war boom.
What was the postwar boom?
Productivity increase (efficiency)
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Increased investment
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Higher employment
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High wages
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Higher demand and consumption
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Growth in business confidence
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Increased investment
What was the average of unemployment in 1950s?
2% significant because the were sticking to the post war consensus which is appealing.
What problems could high wages and demand create?
High wages: people have lots of money to spend so business increase prices. INFLATION
High demand: Britain might have to import more goods. BALANCE OF PAYMENTS
What is Stop Go economy?
Method of correcting the economy when inflation rose and balance of payments entered a deficit. It could also be used to manipulate the economy into an effluent period when there was an elections approaching, called Budget politics (using budget to gain politically, socialist idea, affluence gives votes)
What are the steps of the stop go economic cycle?
- Government action: low interest, cut tax, rising wages. Affluence
2: impact: affluence- rising consumer spending, full employment, high demand, high wages. Problem- inflation, BOP
3: government action: high interest, increased tax, wage freezes, less money to spend, reduces demand
4: impact: reduced consumer spending, low demand, unemployment (business not making money), output decreases, deflation, BOP corrects
Examples of budget politics
In 1951, BOP deficit of 700mil. Butler applied a STOP, and by the end of 1952, there was a BOP surplus £300mil.
1953-4, Butler applied GO.
1955, full employment, rising wages, demand. STOP phase after election, interest raised.
In 1957, GO phase
Never had it so good examples
Between 1951 and 1963, wages rose by 72%
Car ownership rise from 3 million to over 7million
Ownership of TV from 340,000 to 13 million
M1 built in 1959
Working week reduced from 48 to 42 hours
Housing boom
6000 schools built
Conservative Party divisions
Chancellor of exchequer had 4 people in MacMillan’s 7 years. Tension between him and them.
Chancellor Peter Thorneycroft’s ideas
Wanted to end stop go
Wanted to limit wage increases and reduce public spending
To assist issue of inflation and BOP
MacMillan refused and Thorneycroft resigned in 1957
MacMillan was more interested in public opinion
When did Britain apply to join EEC?
1961, no response until 1963. Britains growth was behind that of other countries like West Germany. EEC would have free trade, no tax on imports
What was the NEDC?
National economic development council
Neddy
1961
Set up to plan the economy with 3 groups: trade union, government, business managers
Attempt to address economic decline and establish a long term economic plan
What was the NIC?
National incomes commission
Nicky
Manage wages and prices
Attempt to address inflation
Not very successful because people threatened to strike if not given wage rises and the government gave in
What is the beeching report?
Summer 1963
Attempt to cut public expenditure
Closed 30% of Britain’s rail network
Public outages
Rural areas became more isolated
Who was the new PM?
MacMillan resigned in October 1963 because of illness and scandals. Alec Douglas Home. Never elected, seen as part of the establishment and out of touch. He was PM For 2 weeks without being in House of Lords or commons. No vote called for him in the Conservative Party.
What were some economic policies under Home?
Reginald Maudling was CofE. Lowered interest rates and taxes. Worsened worker productivity so needed to import more goods= BOP deficit of £800mil by 1964.
What were the October 1964 election results?
Not a snap election. Labour won by 4 majority, 317 seats.
L7 - what is Macmillan’s legacy?
Residing over an age of affluence and rising standard of living
His refusal to abandon the policy of working towards full employment
Commitment to the mixed economy
Building the Property Owning Democracy
Humanising the Conservative Party
Committing to decolonisation
Failure to stem the economic decline
Labour Party and Attlee as leader
Attlee stayed as leader until 1955, and the party was still split. Bevan called for him to withdraw in 1954, others wanted a younger man in lead
Who was Hugh Gaitskell?
Labour politicians, right wing of party. Disagreed with Bevan, took over in 1955 after Attlee, died in 1963. Gaitskellites VS Bevanites (left)
What did the left of Labour want?
Believed that enhancing the welfare state by Attlee was only the beginning, the party should commit more greatly to nationalisation and the direction of the economy and society. Want large trade unions to have more influence in policy.
Labour Party opinions on Suez crisis
Left - Germans thought the same about Hitler. Behaving in same way as Nazis, no success in invading
Right - aggressive, a UN police force should have intervened, canal is blocked by what Britain did, unlawful
Their attack on the conservatives didn’t work because most people weren’t against Suez, a minority would have supported Labour
What is unilateralism?
Many of the Labour left were unilateralists, so wanted to get rid of nuclear weapons before other countries to encourage them to aswell. Patriotic reasons- resources were diverted from the needy, and ideological reasons- didn’t want USSR to fall far behind west in arms race
Bevan did NOT support even though he was left
What is the CND?
Campaign for nuclear disarmament. Attracted anti-American and pro-soviet people.
Who is Frank Cousins?
Leader of Transport and General Workers Union in 1956 and led large trade unions who also called for unilateralism. Led the unions into taking more left wing positions.
Why did Labour lose the 1959 election?
Argument over clause 4
Rule book for the party, written in 1919, committees Labour to full nationalisation of industry. At the conference, Gaitskell suggested removing Clause 4, thought it was too left wing (isolated business owners from Labour). Got heavy fire from the left, so he backed down.
Conservative policies - affluence campaign, cut taxes, Go stage
How did Labour divisions worsen?
1960 Labour Party Conference. Bevan died of cancer in April. Labour left argued that Gaitskell betrayed the party’s principles by trying to remove Clause 4, and not committing to unilateralism. Cousins attacked Gaitskell for this at the conference.
What was the CDS?
On the right of the party, some Gaitskellites had formed a group called the CDS, campaign for democratic socialism, (a pressure group) who argued the way the left used TUs to pressure their extremist minority views in the majority was un democratic.
What issues compounded the Labour divisions?
Labours cloth cap image
Party of working classes only, not nation as a whole
Stance over the EEC
Conservatives realised they need to join EEC in late 1950s, applied in 1961. In 1962, Gaitskell declared Labour was against joining= party doesn’t look forward thinking