Churchill 1951-55

Question 1

Stop-go policy

Answer 1

• R.A Butler adopted a stop-go policy (alternated between fighting high unemployment and high inflation)
  STOP phase: Reaction to high inflation and balance of trade deficit restraints such as
  ~Interest rates increasing
  ~Introducing wage freeze
  ~ Increasing taxes
  GO phase: A follow-up because deflating the economy has dangers of putting firms and workers in strain, lifted restrictions
  ~Ending wage freezes
  ~Lowering interest rates
  ~ Introducing tax cuts

Question 2

What is Butskelism?

Answer 2

• Butler - Chancellor of the Exchequer was argued that it was in fact him that ran the party
• Butskelism 1954 - joining together of Butler (Conservative) and Gaitskell (Labour) it was the common ground on matters such as economy and welfare

Question 3

Key points

Answer 3

• Rationing was ended
• Steel industry was denationalised
• The Conservative party committed itself to building 300,000 new homes
• Continue with Keynesian policies (a form of demand-side economics that encourages government action to increase or decrease demand and output)
• Accession of Queen Elizabeth II
• Britain detonated its first atomic bomb
• Korean War ended
• Savage programme of cuts on imports but also on credit, travel, food and subsidies
  -Defecit of $700 million turned into $300 million surplus
• Interest rates rose to 4.5% to encourage people to save
• Education was not a priority
• NHS financing introduced (prescription charges)
• Trade unions were treated in a consolatory

Question 4

1955 election

Answer 4

Why Conservatives won:
- Rising prosperity
- Ending of rationing
- Eden proved popular, calm, optimistic and passionate and his field was in foreign policy
- Good willed and respectful