Economy 51-57 Flashcards
(18 cards)
What did Tory inherit
Fragile economy, balance of payments crisis, 1951 700 million defect and Korean War pushing up military costs
What was population in 1961 compared to 1951? Why?
2 million more; baby boom post ww2
Global Economy booming = ?
Sustained increase overseas trade = vast profits exports + investments and also this, plus rising home demand ensured plentiful employment
When was full employment predicted?
1955
Where was employment in decreasing and where was it increasing?
down in traditional occupations like shipbuilding and agri; up in steel iron car electrics and engineering
Service Industry?
Grew a lot this period, by 1960 1 in 5 of the population worked in it, more than entire heavy industry.
Bolstered by improvement in world trade, Britain could…
Import 29% more in later 50s than 1951 for the same amount of exports
Higher what per head than any major country except usa?
Income
What was the concern?
Britain growth rates were not keeping up with Europe, especially west germany
Why was export market damaged in 1951?
Countries began buying outside of Sterling area
Butlers 1951 memorandum?
end rationing , denationalise steel and iron, pay cut for civil servants, credit restrictions, import limits, cut food subsidy and raise interest from 2 to 4 percent
When did Britain start to recover? When prosperous?
1952
1954
What did the gov use throughout the period to control the economy?
Interest rates as it had worked in 1951 to curb demand
When was the stop in stop go economics ? Why?
1951-52 as economy was weak so deflation and retrenchment needed.
1955-59 economy overheating, due to wage demands and too many imports
When was go? Why?
1953-55, Butler cut both income tax and purchase tax in 1953, policy focusing on expansion and controls removed
Clear by end of decade GB wasn’t…
keeping up with growth rates in Europe
Critics said GB failed to seize opportunities of..
worldwide demand for manufacturers to invest in industrial research and to increase industrial growth.
Mac’s chancellor Thorneycroft, monetarism, why?
Incomes rose 75% 1948-56 and output on 28% = lead to inflation = he want to cut wage demands and limit money supply . One nation Tories rejected this as it would affect housing. Crisis and Divisions in 1957 symbolise stop go economics
