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Britain Transformed, 1918–97

Economic challenges and responses, 1918-79

  • 3 things to know
  • Paper 1

Overview

Recall questions on the staple industries and the return to gold, the Depression, the managed economy, stop-go, the IMF loan, and North Sea oil.

What you need to know

Answer each one before you reveal it.

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Key term

What was the effect of returning to the Gold Standard in 1925?

Key term

What was the 'managed economy' created between 1939 and 1951?

Numbers

What economic problems struck Britain in the 1970s?

Questions from this subtopic

Each one with the model answer underneath.

  1. 1

    What was the 'managed economy' created between 1939 and 1951?

    Model answer

    State direction of the economy during the war followed by Labour's nationalisation of key industries.

  2. 2

    What economic problems struck Britain in the 1970s?

    Model answer

    Inflation, industrial unrest and the 1973 oil crisis, culminating in the 1978–79 'Winter of Discontent'.

  3. 3

    What economic problems did Britain face in 1918?

    Model answer

    War debt, the loss of export markets, an overvalued currency, and staple industries such as coal, cotton and shipbuilding that had lost their pre-war dominance.

  4. 4

    What was the effect of returning to the Gold Standard in 1925?

    Model answer

    The pound was overvalued, exports were priced out of world markets, and employers responded by cutting wages, which produced the coal dispute and the General Strike.

  5. 5

    How did the Depression affect Britain?

    Model answer

    Unemployment reached about three million in 1932, concentrated in the staple industries of the north, Scotland and Wales, while the south saw new industries and rising incomes.

  6. 6

    What were the special areas?

    Model answer

    Regions of long-term unemployment designated for limited government assistance from 1934, an early and largely ineffective attempt at regional policy.

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AThe government admitted 96 dead and 333 wounded.
BOther estimates run to several hundred dead.
COpponents claimed thousands.

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