Transcript 2. Mac and the economyx

Who was Harold MacMillan?
AKA: Super Mac!
You must prepare a report for Harold
MacMillan on the state of the British
economy between 1951 and 1964.
In your report you should
• Outline the position, as you see it –
with suitable factual support
• Explain how this situation came about
• Present your report to the rest of the
class
Get a piece of A3
Put “Never had it so good” in the middle
and spider diagram out to either prove or
disprove the theory. You might even want
to use different colour pens for each side
of the argument
Read through pages 30 – 36
from your textbook and
continue to make notes on your
A3 poster.
Then write up 20 factual recall
questions on Microsoft Word
and put the answers in Red
One thing that I can learn is that….
This is backed up by…….
Prices end up rising and
inflation starts becoming an
issue
Stops people
taking out loans
or getting a
mortgage
People can take out cheap
loans and got good
mortgages. Wages are
increased
Prices stay low
To what extent is Macmillan’s statement an accurate analysis of the
impact of Conservative economic policies during this period?
You must prepare a report for Harold
MacMillan on the state of the British
economy between 1951 and 1964.
In your report you should
• Outline the position, as you see it –
with suitable factual support
• Explain how this situation came about
• Present your report to the rest of the
class
Provenance
Provenance
Content
Content
Tone and Language
Tone and Language
CONSERVATIVE
ECONOMIC POLICIES
Task
• In groups you must reproduce the
diagram on Conservative economic
policies 1951-64
• You must all produce a diagram
• Only one person is allowed to look at the
diagram at one time and feedback to
the rest of the group
• You will only have a limited amount of
time
1953: Income tax
and purchase tax cut
Import controls-£50 limit
on travel allowances
Bank rate raised
1951-Balance of payments and
huge defence commitments
1955: But Butler cuts
income tax and purchase
tax as there is a election
coming
1955: Pots and
pans budget on
kitchen utensils
1955: boom and too
many imports
Increase in exports
to USA
R. A. Butler (1951-55)
1962-National
Economic
Development
Councils created
(NEDDY)
Composed of 6
trade unionists, 6
industrialists, 2
independents and 3
Cabinet ministers
Macmillan
1955-57
Selwyn Lloyd
1960-62
Wages rise
faster than
productivity
1961-purchase tax
raised and bank rate
raised to 7%
Pay Pause introduced
Economic
Policies
Heathcoat-Amory
1958-60
1959-economic recovery
results in giveaway budget
Thorneycroft 195758
Wanted to bring
down inflationincomes had risen by
75%
Income tax cut in an election
winning budget
Demanded halt to
increasing government
spending
Thorneycroft
resigns when
Macmillan
opposes this
Chancellor
Policies
Butler: 1951-55
Balance of payments crisis and huge defence commitments led to raising of the bank
rate and import controls (£50 limit on currency that could be taken out of the
country). Exports to the USA led to an improved situation-in 1953 income tax and
purchase tax were cut. A boom and too many exports should have led to stop policies
but instead cuts were made to purchase and income tax as there was a general
election. This led to a pots and pans budget were taxes were introduced on kitchen
utensils.
Macmillan: 55-57
n/a
Thorneycroft:
1957-58
Incomes had risen by 75% Thorneycroft wanted to cut back on government spending
to prevent inflation but resigned when Macmillan opposed this as he did not want more
unemployment (which cuts would produce).
Heathcoat Amory:
1958-60
An improvement in the economic situation in 1959 led to a ‘giveaway budget’. Income
tax was cut for example.
Selwyn Lloyd:
1960-62
In 1961 income and purchase tax were increased. A pay pause was also introduced.
This was because wages were rising faster than productivity. In 1962 National
Economic Development Councils (NEDDYS) were introduced (they were largely
useless).