McMillan comes into power

• time period?

  Late 1950’s
• What was unemployment like?

  Almost none.

  Full employment
• Balance of payments

  Positive
• Standard of living

  Better.

  More houses were brought.

  Cars and luxury goods were brough.
• Real wages - pay rising faster than inflation
• What was inflation like?

  Manageablw
• the population growth, immigration and birth rate were good due to good economy.
• Highest GDP per capita apart from USA
• What was tax and interest rates like?

  Lower and manageable
• What were the problems?

  • Trains - After WW2 Britain repaired infrastructure that wasn’t badly damaged unlike France, Germany and Japan who were rebuilding with modern and efficient structures.
  • Countries had huge growth compared to Britain
  • Money was being invested and wasted on defense such as blue streak mission
• What was the main problem?

  Britain was lagging behind in industry and infrastructure whereas Europe started again and were cheaper and much more efficient

  We prioritised defence
• What are stop-go economics?

  Economic policy characterized by alternating periods of expansion and contraction.