Theme 1 b 2 - Creating a managed economy, 1939-51 Flashcards
1
Q
What ministries did Winston Churchill government use to control the wartime economy?
A
- Aircraft Production
- Supply
- War Production
- Food
- Labour and National Service
2
Q
How was war production increase after 1940?
A
- Growth in state intervention increased war production and military expenditure
- 1940 - 15,000 aircraft produced - 1944 - 47,000
- Between 6/8,000 tanks made per year
- Govt. military expenditure peaked in 1943 at 55%
3
Q
What did the American Neutrality Act allow?
A
- 1939
- Britain could buy supplies with cash only
- By December 1940 Britain’s cash and gold reserves were spent
- Churchill agreed a Lend-Lease agreement be paid after the war.
- America also supplied liberty ships - large cargo vessels full of oil, coal timber ect.
4
Q
How much debt had Britain accumulated by the end of WW2?
A
- £4 billion to USA
- Repaying this with interest would cost £70 million every day
- Also Economy had contracted by 1/4
- Trade had declined by 2/3
- Competitive brands from America - Eg. Hersey’s Vs Cadbury
5
Q
How much did Britain receive due to Marshall Aid?
A
- 1948
- £2.7 billion
- Paying for general expenses at home and overseas instead of the intended industrial investment
- Continuing National Service until 1965 helping in conflicts in Korea, Malaya and Kenya
- Only invest 9% into infrastructure compared to 20% in Germany.
6
Q
Give examples of industries that were nationalised by the Labour govt in 1945?
A
- Coal Industry Nationalisation Act 1946
- Bank of England 1946
- Transport Act 1947
- Electricity Act 1947
- Gas Act 1948
- Iron and Steel Act 1949
7
Q
What was the hope for nationalisation?
A
- Giving the ability to create full employment in the economy.
8
Q
How were shareholders of the industries taken during nationalisation compensated for?
A
- Private rail brought for £1 billion
- The total bill for nationalisation exceeded £2 billion
- This left little money for important modernisation/
9
Q
When was full employment achieved?
A
- Between 1947 and 1951 by the Labour Govt.
- Unemployed was under 300,000
