Were Labour Successful in Dealing with Economic Problems after WW2?
1946 USA Loan
USA announced aid would cease
Keynes negotiated and got $3,750 to repay
1947 Convertibility Crisis
Sale of sterling when the currency was to be bought and sold freely
Lack of economic confidence
Britain spent a lot on occupying Germany
Imports and exports gap was £438 million
Loss of confidence in the pound and talks of replacement with Bevin
Chancellor Cripps suggested austerity to reduce trade gaps
1949 Devaluation of the Pound
Wages rose slower than prices but exports were 75% more than in 1939
Helped by the USA
Gold began to leave the country and there was a danger of a big selling of sterling
Cripps was ill
Prescription charges
1947 Severe Winter
Energy supply disruptions in Homes Office and factories
Businesses shut down temporarily
Flooding after
Caused problems for transport of coal
Restricted domestic electricity to 19 hours and cutting some supplies
Limited broadcast
Low national morale and Shinwell received death threats
1948 Marshall Plan
American initiative to help Eastern Europe
Britain received 1/3 more than Germany
Post war labour government did not modernise industry
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