Debate over Britain's economic decline

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Debate over Britain's economic decline

Advantages

  • Barnett believed that the crises of 1970 was the result of long term economic decline.
  • British governments had failed to control public spending and to not give in to the unions.
  • Britain's world trade share had gone down from a quarter in 1951, to a tenth in 1975.
  • Technical education had been neglected.
  • Productivity was low, compared to europe.
  • Nationalization had failed. They had tried to save too many failing companies.
  • They cared too much about unemployment, that inflation had risen hugely.

Disadvantages

  • Hennesey and Elliot believed it was the 'golden age'
  • Living standards rose steadily.
  • The rate of economic growth was higher than it had been.
  • Unemployment averaged 2%, many still remembered the great depression.
  • Japan and West Germany were flying ahead, however they were so destroyed from WW2, that they had no choice but to start again, neither had rebuilt their army, Britain spent 7% of their budget on defense.

Evaluation

In the 1950's and the majortiy of the 1960's it appeared to be a golden age for Britain as they had 'never had it so good'. It's clear however. that the government had spent too much money on trying to save failing companies and this is where the problems began to start for them. 

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