Economy

1951-1964

• 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

1964-1970

• 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…