1951-1957 (Never had it so good?)- Economic

Question 1

give 2 factors why the economy in 1951 was poor?

Answer 1

balance of payments crisis

korean war spending

Question 2

when did rationing fully and and what did this signify?

Answer 2

1954

end of austerity= higher living standard

Question 3

what was the % birth rate increase by the end of the 1950s?

Answer 3

5%

Question 4

what was achieved with employment in 1955?

Answer 4

full employment (virtually no unemployment)

Question 5

how many people were employed in service industries?

Answer 5

5m

Question 6

what % more goods did britain import than ever before?

Answer 6

29%

Question 7

where was the only country there was a higher rate of income per head than gb?

Answer 7

usa

Question 8

what was the deficit in 1951?

Answer 8

£700m

Question 9

what did butler recommend in 1951 to help the economic situation (5 things)?

Answer 9

credit restriction
reduce imports
cut food subsidies
raise interest rates
denationalise iron/steel industries

Question 10

what were stop-go economics?

Answer 10

react to economic problems as they arise

Question 11

outline the tories stop-go economic policies?

Answer 11

• 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

Question 12

give a criticism of stop-go economics?

Answer 12

reacted not controlled/prevented problems=failed to keep up with economic growth of europe