• Created by: hbondo
  • Created on: 05-06-19 10:12


  • Post war boom- Food rationing finally ended 1954
  • Austerity of wartime was finally ended
  • UK people had greatly improved living conditions
  • Fast-growing population- 1961 5% larger population than 1951
  • Increase in overseas trade bringing greater levels of investment 
  • High levels of employment
  • 1955 full employment had been achieved
  • Industries related to steel and cars was expanding but coal, agriculture, fishing etc
  • Stop-go economic cycle had not been broken.
  • Economic growth would lead to overheating of economy through rising wage demands and excessive imports.
  • Lagged behind other powers like West Germany, Japan and USA.
  • Regection into EEC 1963 was a major set for Macmillan


  • Modernisation through the white heat of technology 
  • Inherited £800 million deficit 
  • Had to try and break Stop-go cycles inherited from previous conservative government
  • Either deflation or devalution but Callaghan wanted to do neither
  • Devaluation of the pound occured 
  • Wilson set up Department of Economics 1964- Competition against Chancellor of the Exchequour. Poor leadership from Brown (a drunk) led to DEA being abandoned in


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