Economic Developments: Economic Issues under Churchill and Eden and Korean War Aftermath Flashcards
(16 cards)
What war happened that was an economic issue?
Korean War
How much money was expected to be spent on the Korean War until 1953?
£5 billion
What fraction of all government spending went to the Korean War?
25%
Why was there insufficient investment in to Industries?
Stop-Go economics discouraged long-term investors
Why was there low productivity in industries?
They needed to be modernised
Why was modernisation difficult?
implementing machines resulting in unemployment
Why was the pound overvalued?
It did not come off of its fixed exchange rate
What was the balance of payments situation in 1952?
There was a balance of payments deficit
What happened to raw material prices at the end of the Korean War?
Raw material price fell
How much did the government gain a year in spending power after Korean War ended?
£400 million a year
What percentage more imports could Britain buy at the end of Korean War?
13% more
By what percentage did the British economy grow by a year from 1951-64?
2%
What did Tory’s discontinue which made modernization plans? (BIM)
British Institute of Management
What were the alternative Conservative plans to modernise industry?
They did not have any
What did the Conservatives set out to do in their 1955 manifesto instead?
Cut social spending and reduce taxes
How many people were unemployed in 1955?
200,000
