Conservative Economic Policy under their 13 years at large.

SuperMac

Evidence that RAB Butler and Conservatives had “come to accept” labour revolutions.

Butler - “The greatest social revolution in our history”

Features of 1945-64 Consensus Economics:

• Full Employment

• Growth of Corporatism

• Demand management along Keynsian lines

• Pro US, anti-USSR.

Why were Conservative back benchers displeased over Consensus?

• Empire Retreat

• Increased public spending

• Continued Immigration

• Increased Social Welfare

• Applying for EEC

Why were Labour backbenchers displeased with consensus?

• Wanted Nuclear Disarmament (CND)

• Opposed Immigration controls and pro-US foreign policy

• Gaitskill forced to retain Clause IV

Two occasions Conservative and Labour did not follow consensus politics

• Conservatives applied for the EEC

• Labour opposed the “Capitalist Club”

Evidence of improved living standards under consensus

• Full employment with high wages

• Home ownership grew with new homes.

• New towns - Skelmersdale

• Growing companies (ICI - Chemical) (P and O - Shipping)

• Car industry boom (Morris Minor and Mini)

• ITV launched in 1955

• Nuclear Power

What did Butler do in his “Throw away” budget of 1955

Cut taxes

In what year did the conservatives end rationing.

1954

Between 1945-60, the sale of what quadrupled?

Private Cars

Creation of a property owning democracy

Encouraged by interest rates, where Banks and building societies advanced money in the form of mortgages.

Between which nine year period did average wages double?

1950-1959

What did Douglas Home end to lower prices?

Retail Price Maintenance.

How many miles of motorway were built by 1964?

200 Miles

Beeching Report 1963

Nationalisation of the railway system, closing unprofitable lines. Haulage moved to lorries from trains.

Beliefs of Butskellism:

• Full Employment

• Mixed Economy

• Spending on welfare

• Strong relations with Trade Unions

• Investment into Public Works.

“Atlee’s Patriotic Socialists gave way to Churchill’s socialist patriots”

Dilwyn’s summary of consensus politics.

Evidence economic growth was not due to Conservatives

• It was labour’s deflationary policies that had improved exports.

• Marshall Aid improved international economy

• Stop Go was reactionary and only dealed with the short term.

• Stop Go lost the confidence of investors.

Who was MacMillan’s chancellor

Thorneycroft

What causes a rise in demand? (During Go, leading to Stop)

• High wages

• Full Employment

• Purchasing power

What is the “Stop” and “Go” Policy based around?

Inflation

What causes demand to fall (During stop, leading to go)

• Raised interest rates

• Import Controls

• Restrictions on hire purchase

• Reduced spending abroad

What led to an economic party split under Macmillan in 1958

Macmillan was reluctant to “Stop” as he was expansionist, Thorneycroft and other conservatives who resigned believed in Monetarism.

What chancellor cut taxes before the 1958 election to increase consumer affluency?

Chancellor Derick Heathcoat Amory

What was the debt of the balance of payments in 1964?

£800 Million

Who became chancellor in 1962 and fought unemployment with tax cuts (Evidence of reactionary)

Maulding

Criticisms of Tory Economics:

• Policies were responsive and reactionary rather than directing outcomes.

• Critics labelled policies as “Stop-Go” and “Stag-flation”

• Using budgets to buy votes

• Lack of industrial research caused declining industries.

British People had “Never had it so good”

MacMillans address to the public in 1957 due to the rise of purchasing power.

Evidence of emerging technology - “Britain can make it”

• Concorde project with France

• Cameras

• Off Shore gas

• Nuclear Power Station built 1956

• Fridges

• Fascination with Science Fiction.

• TV’s

• Computers in government and business.

Evidence tide had changed by 1964 for the worse:

• Unemployment and Inflation on the rise

• Tories refused to devalue the pound, instead borrowed from International Monetary Fund

• Nuclear Programme limited economic investment

• Germanies share of world trade grew four fold compared to Britain.

Balance of payment in deficit.

Britain had an invisible debt over loans for buying imports. Could not pay it back in invisible services due to shipping losses and selling off overseas investments.

Evidence for beginning of decline:

• Focus on social services over long-term investment

• 1959’s European Free Trade Association could not match the European Economic Community.

• Trade Unions slowed production.