Post_War_British_Economy_1940_1964_Flashcards
(31 cards)
What marked the end of laissez-faire attitudes during WWII in Britain?
The Emergency Powers Act 1939, government control of production, and rationing.
How much did government defence expenditure rise to during WWII?
50% of national income.
What economic consequence did WWII have on British exports and imports?
Exports fell and imports increased.
What industry showed poor performance during WWII despite government control?
The coal industry, due to poor industrial relations.
Which industries grew due to wartime demand?
Chemical, shipping, and automobile industries.
How did the UK fund the war besides taxation?
Sold gold reserves, foreign assets, and relied heavily on U.S. lend-lease aid.
What financial crisis did Britain face after VE Day in 1945?
A “financial Dunkirk” with £4bn in debt and a large trade deficit.
What financial assistance did Britain secure in 1945 and from whom?
A $5.2bn loan from the USA and Canada.
What major condition was attached to the 1945 Anglo-American loan?
Convertibility of sterling by 1947.
What is the ‘dollar gap’ Britain experienced post-WWII?
A shortage of U.S. dollars needed for imports and economic recovery.
What did Britain do in 1947 regarding the pound’s convertibility?
Abandoned convertibility and increased austerity measures.
What % of GNP did Britain spend on defence during the early Cold War?
14%
What was the European Recovery Plan and how did it help Britain?
Also known as the Marshall Plan, it gave Britain $1.3bn, helping close the dollar gap.
Which industries were nationalised by Labour post-WWII?
Coal (1946), gas, iron, and steel (1949).
What % of the economy was controlled by the government post-nationalisation?
20%
What were common issues with nationalised industries?
Lack of capital investment, poor planning, and absence of industrial democracy.
What was the 1949 economic turning point for Labour?
Devaluation of the pound by 30%.
What did devaluation in 1949 aim to improve?
Export competitiveness.
Why was British economic policy flawed despite increased production?
Focused on production, not productivity.
What was the Conservative ‘stop-go’ policy?
Raising interest rates to curb imports, then cutting them to fight unemployment.
What was the trade gap and unemployment situation by 1963–1964?
£800m trade gap and 873,000 unemployed.
What was the failed 1952 policy proposal by Butler?
The ROBOT plan, which was abandoned due to unemployment risks.
What caused the 1956 pressure on the pound?
The Suez Crisis.
What was Macmillan’s 1961 goal for Britain in Europe?
To join the EEC (European Economic Community).
