Why did Labour get defeated in 1951? Flashcards
Debt Britain had after the war?
Debts of £4198 million
What was the Balance of Payment Crisis?
Balance of payments crisis: Britain spent £750 million more abroad that it received
What did exports of manufactures drop by in wartime
Exports of manufactures had dropped by 60% in wartime
What Economic difficulties was Labour worn down with?
• Wartime debts, balance of payments crisis, declining exports, dollar gap (Hugh Dalton negotiation $6000 million from US and Canada for Keynesian polices)
What was Labours response to the Economic difficulties?
Image of party with High taxation, introduced wage freezes, devlaued £
Why was Labour Defeated in 1951?
- Attlee’s Gov facing heavy economic difficulties.
- Industrial concerns
- Entry into Korean War
- Bevanite Rebellion 1951
- Conservative recovery morale.
Industrial concerns: What were Trade Unions angry about?
Angry at Labour’s slowness to respond to workers demands
What percentage from GDP did Labour spend on defence?
14% by late 40s
How much did Britain get from US Marshall Aid
10% of $15 million given to Europe
Why was there a Bevanite Rebellion in 1951?
- Forced to make financial difficulty decision t
- Attlee imposed prescription charges
- Bevan led a number of minister from resigning from the cabinet ‘death knell’
How did the Conservatives Recover?
- Labour divisions stimulated the Conservatives into action
- Sharpened their attacks
- Reorganised party under Lord Woolton
- Younger Tory MP’s such as Butler brough new ideas and confidence
- Iron and Steel debate strong platform for opposition attacks
Keynesian Economics
Keynes believed that the only agency able to influence and keep demand was the government itself.
