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?
1954
end of austerity= higher living standard
what was the % birth rate increase by the end of the 1950s?
5%
what was achieved with employment in 1955?
full employment (virtually no unemployment)
how many people were employed in service industries?
5m
what % more goods did britain import than ever before?
29%
where was the only country there was a higher rate of income per head than gb?
usa
what was the deficit in 1951?
£700m
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
