post-war economic managment
Stop-Go Economics
→ Gov switches between growth (↓ tax, ↑ spend) & control (↑ tax, ↓ spend)
→ Short-term control of inflation
→ Long-term: instability, low biz confidence
White Heat
→ 1960s Labour slogan (Wilson)
→ Focus: tech + innovation (aerospace, electronics)
→ Aim: modernise econ
→ But: lacked consistent investment
OPEC & Yom Kippur War
→ OPEC = oil-exporting nations (e.g., Saudi Arabia)
→ 1973 Yom Kippur War → OPEC oil embargo
→ Oil prices ↑ 400% by 1974
→ Caused: inflation, ↑ unemployment, econ decline
🔸 Key Economic Events
Event | Details | Significance |
|---|---|---|
National Gov (WWII) | Rationing, conscription, all had jobs | Econ grew, people united |
Keynesianism | Gov spends during recession (not cut) | Replaced old “balanced budget” model |
Butskellism (1950s) | Con + Lab agree on welfare + Keynes | Stability, consensus politics |
Inflation (1945–) | ‘Stop’ = ↑ tax to slow econ | Worked short term, but inflation persisted |
Unemployment (1945–) | Gov → full emp., e.g., tax cuts | Seen as vote-chasing (esp. Tories) |
Slow Growth | UK lagged behind (low research and developmeny) | Foreign competition, poor innovation |
Stagflation (1964–79) | Inflation + unemployment + slow growth | White Heat failed to solve it |
Oil Crisis (1973) | Oil x4 cost → econ shock | Unemp doubled, end of consensus |