chapter two

Question 1

post war boom

Answer 1

conservatives were probably lucky with the timing
austerity measures of war over
swift acceleration in birth rate; higher population
increase in oversea trading
full employment
rising income; rise in consumption

Question 2

when did food rationing end

Answer 2

1954 july

Question 3

population growth 1951-1961

Answer 3

49million to 51million; 2 million or 5% increase

Question 4

unemployment in 1955

Answer 4

200,000; <1% of population; essentially full employment

Question 5

tax cut for the middle class of 1955 by rab butler

Answer 5

134million

Question 6

uks economic growth compared to other countries

Answer 6

higher income per head than any country other than america; however uks growth rates or industrial productivity didnt exceed ‘those of elsewhere’ (?)

Question 7

result of growing pay and consumption

Answer 7

inflation

Question 8

macmillans attempt to keep economy growing without inflation

Answer 8

tried to appeal to industry and public to convince them that large pay rises cannot continue; trade unions disagreed

Question 9

anti-inflation policies

Answer 9

taxation remained high
government controls to curb inflation

Question 10

stop go economics

Answer 10

government stuck in a cycle of trying to calm down economic swings; short term emergency solutions rather long term solution

Question 11

result of suez on economics

Answer 11

pressure from usa revealed britains financial weakness; started a run on the pound

Question 12

run on the pound

Answer 12

1957; term describing a rapid fall in the value of the pound in international currency markets

Question 13

who was peter thorneycroft and what did he believe

Answer 13

macmillans chanceller; believed in ‘monetarism’; wanted to limit wage increases and cut money supply

Question 14

run on the pounds effect on the conservative party

Answer 14

caused unions between the expansionary solution and the monetarism (reducing) solution, divided throughout summer of 1957

Question 15

popularity of conservative party by 1959

Answer 15

drastically improved despite the financial crisis of 1957

Question 16

when was macmillans reelection

Answer 16

1959; october

Question 17

tax cut of 1959

Answer 17

370million

Question 18

pay pause

Answer 18

1961; government forced to cut wage increases due to economy overheating; example of stop go policies

Question 19

britains economic growth compared to europe 1960s

Answer 19

britain very obviously lacking behind the regrowth of most of europe; trade with empire and commonwealth insufficient

Question 20

what did application to eec represent

Answer 20

inability for britain to fix economy by itself; shows weakeness and reliance on europe

Question 21

when was macmillans application to eec

Answer 21

1961

Question 22

when was britain rejected from eec

Answer 22

january 1963

Question 23

the beeching report

Answer 23

autumn 1963
review into cutting public expenditure
massive cuts of railway; more than 30% of railways closed
^ caused public outrage + left rural areas isolated
decreased economic success