British Economy 1951-1964

Created by: Loren
Created on: 23-12-13 09:44


	British Economy 1951-1964
	Advantages Became known as the 'Age of Affluence' Some economic expansion Rise in living standards - up 30% in 1962 300,000 homes built a year by RAB butler Overall wage increases Introduction of credit British exports rose between 1952 and 1962 to +29% Consumer spending at £16m in 1959 and rose to £16.75m in 1960 Home ownership doubled Bigger range of consumer goods available in shops Memories of austerity and rationing disintegrated by 1960 Unemployment still relatively low	Disadvantages Stop-go economics Growth rates not as high as other countries (France 50%, miracle in West Germany 250% and 400% in Japan - Britain's was only 40%) 'Staflation' - economic growth is stagnant but inflation continues to grow Wasted money on nuclear weapons - Blue streak (1960), millions spent but abandoned half way through to use US weapons IMF loan Reliant on American funds Unemployment rate rose Economic modernisation never actually achieved 1962 balance of payments issues 'Pay pause'
	Evaluation The development of the 'Age of Affluence' gave people in Britain an alternative life to what they had previously. It was dramatically different to the times of austerity and rationing that had been imposed upon them during the war, the public could begin to live in luxury - especially with the introduction of credit and overall wage increases. However, it can be argued that it began the spiral of economic decline Britain found itself in during the 'end of consensus' period. Britain was beginning to be left behind, a factor that led to the reassessment of their position in the world.The conservatives seemed too ambitious at this time, they believed they could have a zero rate of unemployment and spend as though they were a leading power - e.g. America.

British Economy 1951-1964

Advantages

Became known as the 'Age of Affluence'
Some economic expansion
Rise in living standards - up 30% in 1962
300,000 homes built a year by RAB butler
Overall wage increases
Introduction of credit
British exports rose between 1952 and 1962 to +29%
Consumer spending at £16m in 1959 and rose to £16.75m in 1960
Home ownership doubled
Bigger range of consumer goods available in shops
Memories of austerity and rationing disintegrated by 1960
Unemployment still relatively low

Disadvantages

Stop-go economics
Growth rates not as high as other countries (France 50%, miracle in West Germany 250% and 400% in Japan - Britain's was only 40%)
'Staflation' - economic growth is stagnant but inflation continues to grow
Wasted money on nuclear weapons - Blue streak (1960), millions spent but abandoned half way through to use US weapons
IMF loan
Reliant on American funds
Unemployment rate rose
Economic modernisation never actually achieved
1962 balance of payments issues
'Pay pause'

Evaluation

The development of the 'Age of Affluence' gave people in Britain an alternative life to what they had previously. It was dramatically different to the times of austerity and rationing that had been imposed upon them during the war, the public could begin to live in luxury - especially with the introduction of credit and overall wage increases. However, it can be argued that it began the spiral of economic decline Britain found itself in during the 'end of consensus' period. Britain was beginning to be left behind, a factor that led to the reassessment of their position in the world.The conservatives seemed too ambitious at this time, they believed they could have a zero rate of unemployment and spend as though they were a leading power - e.g. America.

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British Economy 1951-1964