51-64 Economy Flashcards
1
Q
Churchills economy 51-55
A
- ended austerity and rationing in 1954
- house prices were steady
- aimed to preserve industrial peace by giving in to trade unions wage demands
2
Q
Eden economy 55-57:
A
- unemployment only 200,000
- rab butlers giveaway budget of 1955 provided middle class with 134 million tax cuts
- inflation rising due to high wages
- suez crisis led to a run on the pound by the USA
3
Q
Macmillan economy 57-63:
A
- set up the national economic development council
- made 350 million of tax cuts in 1959
- set up the national incomes commission
- asked for a loan from the IMF due to worries about the economy overheating
- introduced a pay-pause to combat same issue
- employment situation seriously deteriorated by 1962
4
Q
Balance of payments and stop + go policies:
A
-growth in wages caused inflation
-government controls used to curb inflation, keeping taxation high and stopping excessive spending
-this pattern was called stop&go economics
-the cycle began with imports exceeding exports so the government would employ stop policies:
controlling high interest rates and wage freezes
demand falling, output decreasing
-then they would employ go policies
removing controls, increase in demand, rising imports
-the cycle would then start again
5
Q
Nicky and neddy:
A
- Selwyn Lloyd set up the National Economic Development Council
- NEDC dealt with long term economic planning
- National Incomes commission set up 1962
- NIC set up to keep an eye on prices
6
Q
Positives of the British economy:
A
- full employment, only 200,000 unemployed less than 1% of population
- most people still employed in primary industry
- economic growth and low unemployment caused rise in income
- 5 million in services industries by 1960
- huge expansion in steel and electrical work
- butler boosted election prospects with giveaway budget of 134 million in tax cuts, 1955
- 1959 giveaway budget provided tax cuts of 370 million
