1B: Economic Challenges

What were the economic challenges faced by Britain post-WWI?

Loans to Britain, loss of export markets, industry shift, financial costs, debt increase, and rising taxes.

What was the total national debt of Britain in 1920 post-WWI?

£8 billion.

What was the impact of German U-boats on Britain's economy?

Britain lost access to valuable export markets, reducing exports from one-third to one-fifth of total wealth.

What characterized the post-war boom in Britain from 1919-1920?

Pent-up consumer demand following wartime rationing and speculative investments.

What caused the recession in Britain during 1920-1921?

Surging unemployment, inflation, and loss of export trade due to new foreign competitors.

What was the unemployment rate in Britain by 1921?

12%, with 2 million unemployed.

What significant economic measure did Lloyd George implement to manage economic recovery?

Reduced government spending to appease middle-class voters.

What event led to the global depression affecting Britain in 1929?

The US Wall Street stock market crash.

How did the Gold Standard affect British exports?

It made exports expensive and uncompetitive, prolonging the economic slump.

What was the effect of the 1931 withdrawal from the Gold Standard on Britain?

Allowed Britain to recover more quickly from the depression.

What was the outcome of the Special Areas Act (1934)?

Provided insufficient aid to the depressed regions.

What did the Lend-Lease Agreement with the USA provide to Britain during WWII?

Vital supplies and assistance, leading to significant debt post-war.

What economic challenges did Britain face post-WWII?

Trade collapse and a debt burden exceeding £4 billion to the USA.

What was the Nationalization policy of the Labour government post-WWII aimed at?

Bringing industries like coal and rail under state control to achieve full employment.

How did Keynesian policies affect employment priorities from 1951 to 1964?

Governments prioritized maintaining low unemployment.

What economic clash did Britain experience during the 'Stop-Go' economics period?

Rising affluence clashed with inflationary pressures.

What was the major technological success of Wilson's Ministry of Technology?

The creation of the Concorde passenger plane.

What was the mission of the Industrial Reorganisation Corporation (IRC)?

To promote efficiency in industry through loans and mergers.

What significant economic policy did Wilson implement in 1967?

Devalued the pound from $2.80 to $2.40.

What fiscal challenge did the Labour Government face from 1974-1979?

Rampant inflation peaking at over 30% in 1975.

What was the condition of the IMF loan secured by Britain in 1976?

Conditioned on £3 billion in spending cuts.

What did monetarism advocate according to the Centre for Policy Studies (CPS)?

Tight control of the money supply and reduced state spending.