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AQA History A-level - The Making of Modern Britain 1951-2008 - The…
AQA History A-level - The Making of Modern Britain 1951-2008 - The affluent society: Britain 1951-64 - Economic developments 2️⃣
Background
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Period AKA 'age of affluence', but there remained some underlying economic problems
Post War Boom
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Food rationing ended in '54, marking end of austerity
Productivity increased w/ full employment achieved in '55 (<1% of workforce unemployed), leading to wage increases but also tax cuts (£134m) - people were able to buy more consumer goods, encouraging investment & growth
PWB: Productivity Rises :arrow_forward: Increased Investment :arrow_forward: Higher Employment :arrow_forward: Higher Wages :arrow_forward: Higher Demand & Consumption :arrow_forward: Growth in Business Confidence :arrow_forward: Increased Investment
But despite the richer feeling, British economic growth wasn't as strong as in other countries
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Definitions
Productivity - efficiency, ie. getting more produced per worker, per shift, per hourly wage; in this way, costs are reduced, profits increased & workers are freed up for other uses
Stop-go economics - economics of 'stop-go' derived its name from tensions between an expanding economy, w/ low interest rates and rising consumer spending ('go') & results of economy overheating, w/ wages & imports exceeding productivity & exports, necessitating a deliberate slowing down, or deflating economy ('stop') through higher interest rates & spending cuts
Balance of trade - difference between goods that a country imports and what is exports; if country imports more than exports it's said to have a trade deficit; if it exports more than imports it has a trade surplus
Balance of payments - includes invisible imports/exports ie. services such as shipping, banking, insurance; balance of trade is part of balance of payments
Run on the pound - term describing rapid fall in value of pound in international currency markets, esp. in relation to USD
Sterling - term used by economics for British currency, pound sterling
Sterling - term used by economists for British currency, pound sterling
Key Profiles
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Enoch Powell (1912-'98)
Cons. MP 1950-'70; held ministerial positions, but a PWC critic; notorious for speech on immigration in '68 which led to his sack from shadow cabinet; Feb 1974 left Cons., urging to vote Lab. due to EEC opposition; Oct '74 elected as Ulster Unionist Party MP
Closer Look
Inflation is when prices increase as people have more disposable income; some inflation helps economy as it encourages growth in businesses, but too much can lead to economy overheating as workers demand higher wages
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During WWII there was a shortage of many foods; rationing was introduced to prevent food price rising; despite being unpopular, it was a healthier diet than pre-war
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