13 Wasted Years – How accurate is this judgement?

In 1957 Macmillan claimed that’ most of our people have never had it so good’, while Labour described the period as 13 wasted years

It is fair to argue that whilst most people saw rising affluence and an improvement in living standards there was little long-term investment or planning

Clearly, the most significant factor was economic

To many personal affluence was the most significant reason why this was a ‘golden age’ but more realistically the lack of economic investment was the reason why it can justifiably be described as 13 wasted years

Stop-go economics – manipulating budgets for electoral gain - Butler’s £134million give away in 1955 led to rising inflation

Macmillan failed to stem Britain’s economic decline and by 1964 industrial production was growing ten times as quickly in Japan and four times as quickly in Germany

Britain’s share of world trade in manufactured goods fell from 25.5% to 13.9% under Macmillan

Nicky, Neddy and the Pay Pause ultimately failed and inflation was a significant problem - between 1961 and 1964 exports grew by only 10% compared to 20% for imports, fueling rampant inflation

Unemployment topped 800,000 in 1963.

Wealth creation and economic efficiency were given low priority – especially if compared to Thatcher’s governments of the 1980s

Little was done to improve the modernisation of industry, reduce trade union power or restrictive practices

The 1957 Housing Act, which attempted to raise the stick of rented accommodation, relaxed rent control - criticized as a landlord’s charter by the Labour Party it encouraged exploitation by unscrupulous landlords such as Ranchman

Failed to deal with the rising racial tension caused by West Indian immigration in the 1950s + from the Indian subcontinent in the early 1960s - 1962 Commonwealth Immigration Act restricted immigration but the gov. did little to tackle the ingrained discrimination in British society

Education had been virtually neglected with little encouragement given to scientific, technical or managerial education

Move towards comprehensive education, but few schools had been built and the 11+ was still dominant and the average grammar school had three times the resources of the average secondary modern 

Very low proportion of school leavers go to university - it was not until after 1961 than any new universities appeared

Colleges of Advanced Technology were introduced but are not given university status and attract few students

The most significant argument for this being a golden age was the personal affluence people experienced

Rationing finally ends under Churchill

Wages up 72% but prices only 45%

Low taxation – Macmillan lowers to low of 38.75% before1959 election

Unemployment rarely above 2%

Home ownership 44%

TV ownership 91%

When Macmillan told the electorate ‘You’ve never had it so good’, this really did seem to be the case

The continuation and expansion of the welfare state as well as a commitment to Keynesian economics and full employment also contributed to a personal feeling that this was indeed a golden age

Labour may have created the welfare state but expenditure increased under the Conservatives, both in real terms and as a percentage of public expenditure – from 39% to 43%

Poster boy for commitment to the welfare state was Macmillan

As Minister for Housing the government surpassed the 300,000 new houses target and by 1964 1.7 million new homes had been built