1.1 creating a managed economy 1939-51

• War Production


  The primary focus of the managed economy during World War II was to maximize war production. Industries were directed towards producing armaments, munitions, and other essential supplies for the war effort.
• Rationing and Controls


  Rationing was introduced to ensure equitable distribution of scarce goods such as food, clothing, and fuel. Price controls were implemented to prevent inflation, and the government regulated wages to maintain social stability.
• Labour Mobilization


  The government implemented policies to mobilize labour for war production, including conscription and the utilization of women in the workforce. The wartime economy created new opportunities for women in traditionally male-dominated industries.
• Financial Measures


  To finance the war effort, the government raised taxes and borrowed extensively, accumulating significant public debt. The Bank of England played a central role in managing the nation's finances and controlling inflation.
• Post-War Reconstruction


  With the end of World War II, Britain faced the task of rebuilding its economy and society. The government embarked on a program of post-war reconstruction, focusing on housing, infrastructure, and industrial redevelopment.
• Nationalization and Welfare State

  The Labour government, elected in 1945 under Clement Attlee, implemented a series of reforms aimed at creating a more equitable society. Key measures included the nationalization of key industries such as coal, railways, and utilities, and the creation of the welfare state with the establishment of the National Health Service (NHS) in 1948.
• Planning and Regulation


  The post-war period saw increased government intervention in the economy through planning and regulation. The Labour government implemented industrial policies to promote economic development and address social inequalities.
• Keynesian Economics


  The ideas of John Maynard Keynes influenced economic policy during this period, with a focus on government spending to stimulate demand and maintain full employment. Keynesian principles underpinned the management of the post-war economy and the pursuit of economic growth.