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10 Cards in this Set
- Front
- Back
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Successes of British economy |
The Age of Affluence
-Mens weekly wages rose £8 30 in 1951 to £15 35 in 1961) - massive increases in private savings boom in car ownership - easy access to cheap mortgages, home ownership increasedHarold -Mac as housing minister -construction of 30 000 houses per year -New towns planned by Labour in 1940s were rapidly expanding -food rationing had ended -surge in ownership of consumer goods golden age did exists and progress was mad e living standards were rising rate of economic growth was higher compared to 1900-39 unemployment 2% |
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Failures of British Economy |
-failed to control spending or face down wage demands from unions -British industry failed to modernise -British World trade 1/4 in 1951 to 1/10 in 1975 -Technical education neglected -Low productivity vs Japan and Germany -Nationalisation a mistake- why ? - Too much emphasis on full employment had led to problems with inflation |
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what is Keynesianism ? |
-economic theory that suggest governments should invest in the economy when it is doing poorly to stimulate growth, raise employment and wages
- negative: can lead to inflation |
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what is relative decline |
-Whilst B economy was growing it was not growing as fast as major economies such as USA an west Germany -B economy was declining comparatively to the nations |
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Stop Go economics, examples of it |
-A cycle of economic growth that results in the government having to have different levels of intervention in the economy to keep the cycle going -Stop Stage- Selwyn Lloyd 1960-62 raised taxes and cut spending -Go stage- Maudling 1962-64 reduced taxes to boost economy |
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problems with stop go economics |
- it was reactionary to problems - short term fix/stop gap measure? -did not solve the balance of payments crisis - the gov was unable to direct the economy -distorted the free market economics |
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what caused relative decline? |
-No coherent policy -Budgets were vote winners -No investment in research and development -No effort to improve worker-employer relations -Balance of payments crisis -Failure to modernise |
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examples of rise in living standards |
-new credit allowed people to buy consumer goods -the end of rationing -wages increased by 72% retail prices by 42% -Unemployment 2% |
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what problems were caused by the balance of payments crisis?** |
-a reduction in foreign police reserves held by the government? -the economy was producing and exporting so was nt growing the economy like other nations were -importing more than exporting, -other countries gaining (making money) B not contributing to relative decline -stunts economic growth- balance of payments deficit has to be financed from somewhere - Lose investors- currency not sustainable |
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what was Maudling's Dash for Growth Budget? |
the budget before the 1964 election where taxes and interest rates wear reduced significantly to help spur growth in the hope this would allowed the Conservatives to win the election ?check this |
