1951-59

• 1952 balance of payments


  £259 million surplus
• What is stop-go economics?


  The economics of 'stop-go' derived its name from the tensions between and expanding economy, with low interest rates and rising consumer spending ('go') and the results of the economy overheating, with wages and imports exceeding productivity and exports, necessitating a deliberate slowing down, or deflating of the economy ('stop') through higher interest rates and spending cuts.
• what did 'setting the people free' include?


  - income tax reduced

  - unemployment less than 1%

  - rationing ended in 1954

  - wartime controls removed
• what was Butlers record by 1955?


  no clear economic strategy

  
  

  - low taxes, inflation

  - no balance of payments problems

  - rising prosperity
• Inflation in 1955


  Raised bank rate 3-4.5% but also raised income tax prices continued to rise inflation and put the £ under pressure
• How was the party's pledge of housing a success?


  Pledged to build 300,000 per year

  
  

  1953- 327,000

  1954- 354,000
• how did spending on welfare state rise in real terms?

  39.2% of expenditure in 1951

  43% in 1955

  
  

  according to Guillebaud report
• Why was Churchills personality not important in the success of the 51-59 government?


  a national hero not interested in domestic affairs (limited impact)
• what was macmillans economic policy?

  stop and go policy
• What was the 1957 budget? and what did it lead to?


  generous 'go'

  led to higher inflation and pressure in the £
• What did Thorneycroft insist on in 1958?

  deflationary measures
• what did Thorneycroft change interest rates to?

  5-7%
• what other deflationary measures did Thorneycroft implicate?

  restricted wage increases

  cut gov expenditure
• what was the consequence of macmillans disagreement to Thorneycroft?

  Thorneycroft resigned and treasury team
• what type of budget was the 1959 budget?


  'give away budget
• how many tax cuts in 1959?

  £370 million

  4p of income tax
• why was the boom of 1959 short lived?


  consumer spending rose and inflation also rose
• why did Lloyds deflationary measures and wage restraints not work?

  voluntary
• Effects of 'pay pause'


  freeze wages and reliance on IMF loan
• what was unemployment in 1962

  800,000
• Why did unemployment rise?

  winter strikes docks and industry
• what were the results of the Beeching Report 1963?

  30% railways closed
• what was the 1963 budget?

  £300m tax cuts

  imports rose 20% higher than exports
• What was the BOP deficit in 1964?

  £800 million
• what was Britains GDP like?

  lowest in Europe
• what was wage rises 1951 compared to 1960?


  £8.30 to £15.35
• % growth in real wages

  1951- 2.2%

  1964- 4.0%
• what did fridge consumerism rise?

  increase
• Tv ownership increase


  up by 32%
• how many holidayed at butlins each week in 1950s?

  60,000
• increase of car sales in 1950s


  from 1.5m in 1951 to 5.5m in 1965