7.1 - the state of postwar britain (context)

by the 1950s, britain had….

the second highest average income in the world

what were high wages caused by?

high labour demands

extensive building schemes also led to…

a growth in employment

what else began in the 1950s as a result of this?

the birth of consumer culture

the growth of consumerism is evidence of…

widespread disposable income

what was the general consensus regarding high taxation?

that it was acceptable in order to fund the welfare state

welfare costs typically…

increased every decade

did welfare services improve following the initial labour reforms?

yes

what did PM macmillian have to say about life during this period?

the people of britain have never had it so good

when did things begin to change?

late 60s/early 70s

between the 1950s to the 1970s, britain went from…

being to one of the most productive countries globally to one of the least

what might have caused this?

high government spending or the fact that workers were kept in jobs when they weren’t needed in order to please unions

how did nationalisation harm the british economy?

since there was no domestic competition, they didn’t need to modernise, something which damaged trade

what else damaged trade for britain?

the fact that we weren’t members of the EEC - trading with just the commonwealth could not supplement the loss of european trading partners

inflation was making prices…

rise faster than wages, since the UK was importing more and producing less

what happened to peoples spending power/disposable income?

it declined

what also rose during this period?

unemployment

how many were unemployed by the 1970s?

over a million

what were frequent throughout the 70s as a result of this?

strikes

what is evidence to show that the unions were very powerful during this period?

the 1972 miners strike

how?

it was so effective that the government was forced to impose a ‘three day week’ on electricity usage

this eventually…

turned public opinion against the unions, thus enabling the rise of thatcher