Economic developments 1939-64 Flashcards
(36 cards)
what measures did the coalition govt put into place?
RCBOTC
- rationing inc bread, meat, clothes + fuel
- both men + women conscripted into work that govt deemed as essential
- unpopular scheme of Bevin Boys (1943-48)
- order 1305 was passed - forbidding strikes
- tax on incomes over £1000 per year rose to 38%
- millions of acres of spare land was used for crop production, by 1945 the amount of arable land under cultivation increased by over 50%
what was the national service act No.2
took all single women aged 20 + 21 into was service
in 1949 it was lowered to 19
what were the Bevin Boys?
men aged 18-24, who were conscripted. this national service no.s would enter a fortnightly ballot, those whose final digit match that weeks randomly drawn no. would be sent to the coal mines
how did the British public support the govt?
bought war bonds - almost £8.5 bill raised
civilians also saved + collected aluminium pans + iron railings for war materials
they accepted not only income tax rises but cuts in production to consumer goods
what % of women agreed that they should all do war work?
97%
what had British gold reserves fallen to in 1941?
£3 million
what were British overseas debts at, at the end of the war?
over £3 billion
what did lend lease do for Britain?
received $750 million worth of arms in 1941 alone
what happened in the 1950s?
a period of economic growth, consumption increased, population became more affluent, British steel industry was booming, British based P&O had become the worlds largest shipping line with 366 vessels
in Macmillians premiership what did growth avg out as?
4%
examples of leading manufacturers after the war?
Rolls Royce, Vickers, Ferranti
what was seen as a poison chalice?
the loan of $3.75 billion at an interest rate of 2%
Britain spent it within a year + they had to make the £ freely convertible to $ from 1947. almost immediately countries with sterling balance took $1 bill from British reserves + govt were forced to suspend convertibly
what led to a balance of payments deficit of £438?
the cost of imports from US as they were rearming in response to the soviet threat
what was introduced 1951-64?
stop go policies
stop (1951-52)
Churchill inherited balance of payment of deficit £700 million
responded by introducing credit restrictions, cutting food subsidies + reducing imports by £600 mill
go (1953-54)
cut bank rate, industry began to expand, investment increased + full employment achieved
stop (1955-56)
balance of payments deficit 1955
purchase tax was increased + bank rate rose to 5.5%
go (1957-58)
taxes lowered + credit restrictions eased
however as consumer demand increased so did imports + prices -> demand of higher wages = strikes
balance deficit
stop (1958-59)
thorneycroft resigned over cuts of £163 mill that macmillan didn’t want to do
go (1959)
in time for polling day taxes cut, relaxed credit controls, allowed wage increased
stop (1960-63)
interest rates rose, 10% added to purchase tax + import duties increased, a pay cause introduced no wage rises for 12 months
go (1963-64)
big increase in imports. balance of payment deficit of £748 mill
also due to high production costs which made br exports more expensive
what were the changes in industry + trade?
- corporate trading grew as tycoons took over + reorganised poorly managed businesses
- power of good advertising recognised
- modern safer tech in coal mines (large super-pits)
- aircraft + chemical industries expanded
how had transport developed?
8 mile Preston bypass in Dec 1958 -> marked the beginning go motorway construction -> 300 miles built 1964
67 miles of the M1 opened in 1959
