Brainscape's Knowledge GenomeTM

Browse over 1 million classes created by top students, professors, publishers, and experts.


See full index

The Making Of Modern Britain > Economy > Flashcards

Economy Flashcards

1
Q

When was their full employment?

A

1955

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
2
Q

Why was their a run on the pound in 1956?

A

Suez Crisis

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
3
Q

What was MAcmillans eco. policy in 1957?

A

against monetarism (Thorneycroft)
–> he resigned with Enoch Powell

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
4
Q

Why did Macmillan win the 1959 election through eco?

A

£370 million tax cuts
pound regained in value

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
5
Q

When was the pay pause and the IMF loan?

A

1961

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
6
Q

When were their balance of payment problems and solutions?

A

1962 - NICKY and NEDDY were set up to monitor wages and prices by Selywn Lloyd

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
7
Q

WHen and what was the Beechinf Report?

A

1963 - closed 30% of all railways

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
8
Q

Britian international poisition 1964?

A

lagging behind Japan and Germany

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
9
Q

What was Labours eco. position in 1964?

A

inherited a £800 million deficit
options were to devalue ( party of devaluation) or deflate (stop go)

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
10
Q

What was Devaluation and Deflation?

A

Deflation–> support pound and prevent inflation
Devalutaion–> imports expensive, home good cheaper, help balance of payments by lowering value of pound

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
11
Q

What did George Brown set up to help economy in 1964?

A

DEA –> to help with wages
However it was competing with the Treasury to came to nothing

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
12
Q

When was Brown moved to Foreign Affairs and end of DEA?

A

(1966) moved
(1967) ended

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
13
Q

What replaced DEA?

A

prices and incomes policy to keep inflation down

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
14
Q

Why was there a sterling crisis in 1965?

A

Caused by the seamen strikes
However Labour gov. survived it

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
15
Q

What affected balance of payments in 1967?

A

War in Middle East affected oil supplies + major dock strike

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
16
Q

Outcome of balance of payment problem in 1967?

A

gov. devalued + pound dropped by 14%
Defence cuts + higher interest rates

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
17
Q

Post war consensus by 1970 economically?

A

questions whether state should take a greater role in planning economy and ensuring full employment

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
18
Q

Why were Labour unlucky when they lost the 1970 election?

A

Balance of payment surplus and inflation still running at 12% –> economy was improving

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
19
Q

Economy in 1971?

A

Anthony Barber (Chancellor)
tax cuts to encourage investment –> however led to stagflation
currency decimalised

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
20
Q

What was the famous U-turn?

A

(1971-2) Unemployment reached 1 million had to retreat from free-enterprise eco. principles his gov. had tried to follow
Rolls Royce Nationalised
Money poured in to prevent Upper Clyde Shipbuilders going bankrupt

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
21
Q

Affect of U turn?

A

Unemployement went down to 500,000

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
22
Q

What happened in 1973?

A

Yom Kippur War led to oil price crisis and a subsquent energy crisis and wage increase from miners after strike

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
23
Q

What did Labour inherit in 1974 economically?

A

Inflation at 15% and £3 billion balance of payment deficit

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
24
Q

Who was Chancellor from 1974-6 and first steps?

A

Denis Healey –> 2 budgets, March and July 1974, to deal with eco. crisis without annoying unions

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
25
Q

What did Denis Healey propose in his budget April 1975?

A

steep rises in taxation and public spedning was cut

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
26
Q

What was set up to with the aim to increase investment and give financial aid?

A

(1974) national Enterprise Board (NEB)

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
27
Q

What economic action in 1975 created renewed contrversy?

A

British Leyland nationalised –> rescuing lame duck industries

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
28
Q

What did Conservatives inherit economically in 1976?

A

poor balance of payment put pressure on sterling

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
29
Q

What speech did CAllaghan give in Sept 1976 to labour Party Conference?

A

‘cosy world’ gone
full employment gone
prep. for £3 billion IMF loan and need for spending cuts

30
Q

Callaghans eco abilities?

A

dealt well with IMF crisis and eco. recovered
(1978) unemployment falling but still high and inflation at 10%

31
Q

Public view on eco in 1976?

A

(Cons.) Nationally humiliating
reinforced image that Britian in eco. decline

32
Q

What was Thatchers initial eco. policy?

A

Monetarism –> controlled money supply to reduce inflation
–> wets and dries
(1981) gov. borrowing went down
- benefits frozen
- grants to local councils cut

33
Q

Examples of wets and dries?

A

Wets: Willie Whielaw (Home Secretary)
Jim Prior (employment minister)
Dries: more eco. posts
Geoffrey Howe (Chancellor)
Keith Joseph (Department of Industry)
Nigel Lawson

34
Q

What was aim of monetarism?

A

Individuals spent moeny better that gov. did
–> shift away from direct taxation to indirect e.g. VAT

35
Q

Economy in 1980?

A

Stagflation came back

36
Q

overall monetarism

A

hit poorer people harder
(1986) Lawson abandoned spending cuts and monetarism ended by Thatchers second term

37
Q

Interest in 1979, 1980, 1986, and 1990?

A

17%
22%
2.5%
10.7%

38
Q

What was rate capping and when was it introduced?

A

(1981) control overspending and limit local tax

39
Q

What were Thatchers 2nd and 3rd eco. policy?

A

Privitisation and deregulation

40
Q

What was privitisation or (denationalisation) ?

A

Individuals spent money better than gov.; businesses would compete; brought revenue for gov.
signalled end of post war consensus

41
Q

When did privitisation not work?

A

local gov under financial pressures
‘outsorucing’ –>private companies took contracts to deliver goods previously provided by state
life insecure for many employees: no long term job security or relaible pension provision

42
Q

Examples of privitisation?

A

(1979) BP privatised
main push –> (1984) British Telecom privatised
(1986) British gas privatised
(1994) plans to privatise coal,
(1996) railways

43
Q

What was deregulation?

A

Making it easier for businesses to trade and grow –? encouraging entrepreneurship

44
Q

How did gov. encourage deregulation?

A

Loan Guarantee Scheme–> easier for small businesses to borrow money
Enterprise Allowance Scheme –> encouraged unemployed ti start their own businesses by giving £40 a week to get businesses of ground

45
Q

What was the ‘big bang’?

A

(1986) deregulated London Stock exchange
–> became world financial centre

46
Q

Britain economy 1980 overall?

A

London financial capital of the world + compete with Wall Street
Economy grew but productivity remained the same
–> 2.2% growth in GDP no better than 1970 Growth in second half of the decade balanced the underperformance of the first half

47
Q

Thatchers eco. belief?

A

New RIght –> inflation was threat of the economy
Reversal of PWC where uneployment was avoided

48
Q

Issues with high interest rates (1979-1980)?

A

more expensive for businesses to borrow
incr. value of pound –> difficult for businesses to export
Economy went into recession, businesses going bankrupt, led to high unemployment

49
Q

What happened with interest rates in 1986?

A

Dropping very low, attempts to control inflation led to further recession and eventual entry to ERM
By 1990 it then reached double figures again

50
Q

Unemployment in 1983?

A

rose to 3 million (didnt fall below till 1987)

51
Q

How was high unemployment in 1983 tackled?

A

Yotuh Employment Schemes –> employers received subsidy to take young people on
Gov. remained firm that inflation more important than unemployment

52
Q

How was North and South divide worsened?

A

Britians eco. moving away from heavy industry and instead based on services
(1981) series of riots
(1981) Scarman Report found cause was poverty and race
–> high unemployment and deprivation

53
Q

What was aim of the poll tax in 1990?

A

make local councils more accountable to their electors by ensuring everyone contributed

54
Q

Negatives to poll tax?

A

poor pensioner would pay the same as a millionaire

55
Q

Affect of poll tax?

A

Anti-poll Tax unions set up urging people not to pay
(march 1990) anti-poll tax dem. in Trafalgur Square with more than 200,000 people
–> led to riot and 5000 people injured (some police and innocent bystanders)
–> 300 arrests made
–> police lost control
–> criticism of politicisation of the police

56
Q

Economy from 1991-2?

A

rose from 1.6 million to 2.6 million
homeowners in neative equity
homes repossessed

57
Q

What did Major do before the election in 1992?

A

resorted to high public spending
–> spending forced as a result of risinf unemployment

58
Q

When and what was ERM?

A

(1990) joined to maintain fixed rate of exchange with narrow fluctuations

59
Q

What was Balck Wednesday?

A

(1992) left ERM
–» British currency under pressure and kept decreasing
–> postivie eco. improv. but negative political
–> unemployment rate slowed
–> housing market picked up
–> car ownership incr.

60
Q

When was poll tax abandoned and affect?

A

(1991) was £1.5 billion wasted

61
Q

What did Major inro. economically?

A

PFI (Private Finance Initiative)
public-private partnerships
private companies fund infrastructure improvements then deliver public services

62
Q

Who was chancellor from 1997-2007?

A

Gordon Brown control over eco. policy

63
Q

How did Brown help pay for work?

A

Intro. tax credits
–> benefits paid to people with low incomes with specific elements targeted at e.g. disability or those with children

64
Q

What did Labour inherit in 1997 economically?

A

favourable eco. circumstances

65
Q

What were Lab priorities in 1997 and why?

A

Keep inflation low, gov. spending under control, appearance of pro-business
–> to escape iamge as a ‘tax and spend’ party

66
Q

Browns policy with Bank of ENg.?

A

made independent from gov.
–> could decide where to set interest rates to match gov. chosen inflation

67
Q

What did Brown do with Tresasury?

A

set rules about how mcuh could be borrowed by gov.
–> following Thatcherite belier supply of money need to be controlled

68
Q

Purpose of the treasury?

A

imporve public services
–> investment in new schools and pay rise for doctors and teachers
–> funding necessary after neglect from cons. 1979-97

69
Q

How did Lab. avoid raising taxes?

A

Like Cons. used private sources of funding to improve public servies
–> criticism: funding from PFI (prive Fiance Initiative) led to debts stored in future

70
Q

Eco. by 2007?

A

Brown unprecendented 10yrs as chancellor
- inflation under control
- record number in wrok
- living standards high
- consumer eco. boomed

71
Q

What was Economist view by 2007?

A

consumer boom based on rising house prices and high levels of credit card spending + personal debt than incr. productivity
–> danger ‘bubble’ might not last

The Making Of Modern Britain (14 decks)

Brainscape helps you reach your goals faster, through stronger study habits.
© 2024 Bold Learning Solutions. Terms and Conditions