give 2 factors why the economy in 1951 was poor?
balance of payments crisis
korean war spending
when did rationing fully and and what did this signify?
end of austerity= higher living standard
what was the % birth rate increase by the end of the 1950s?
what was achieved with employment in 1955?
full employment (virtually no unemployment)
how many people were employed in service industries?
what % more goods did britain import than ever before?
where was the only country there was a higher rate of income per head than gb?
what was the deficit in 1951?
what did butler recommend in 1951 to help the economic situation (5 things)?
credit restriction reduce imports cut food subsidies raise interest rates denationalise iron/steel industries
what were stop-go economics?
react to economic problems as they arise
outline the tories stop-go economic policies?
- 1951-52=STOP:weak economy; deflation necessary=bank rate raised and credit restricted
- 1952-55=GO:balance of payments recovered=controls removed
- 1955-59=STOP:economy overheats due to wage demands etc=higher interest rates
give a criticism of stop-go economics?
reacted not controlled/prevented problems=failed to keep up with economic growth of europe