post-war economic managment

What is the ‘stop-go’ policy and why was it used?

Gov ↑ spending for growth (“go”), then ↑ taxes to control inflation (“stop”) → short-term fix, long-term instability.

What was the aim of the ‘white heat’ of technology?

Modernise UK economy via tech/innovation (e.g., aerospace), promote skilled jobs – limited success due to funding gaps.

What triggered the 1973 oil crisis?

OPEC response to Yom Kippur War → oil prices ↑ 400% by 1974.

Effects of the 1973 oil crisis on the UK?

Inflation ↑, imports cost more → unemployment x2, ↓ wages → ‘Winter of Discontent’.

What did Keynesianism propose?

A: Gov should ↑ spending during downturns → stimulate demand → fight unemp.

What was Butskellism?

Named after R.A. Butler (Con) and Hugh Gaitskell (Lab) 1950s consensus on Keynesian econ + welfare state → stability.

What caused Britain’s slow economic growth post-WWII?

low investment in non-defense R&D → outpaced by USA, Germany, Japan

Q: What was stagflation and when did it occur?

1964–79 → combo of inflation + unemp + slow growth → econ failure

: How did the gov try to control inflation in 1945–50s

‘Stop’ policies like ↑ taxes to reduce spending, but inflation still grew.

What ended post-war consensus politics?

Oil crisis → unemp ↑, inflation ↑, strikes → public blamed both parties → Thatcher era.