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The Post-War Consensus in Britain: Political and Economic Landscape

At a Glance

Title: The Post-War Consensus in Britain: Political and Economic Landscape

Total Categories: 6

Category Stats

  • Foundations and Core Principles of the Post-War Consensus: 8 flashcards, 12 questions
  • Key Policy Pillars: Welfare, Economy, and Labour: 9 flashcards, 16 questions
  • Intellectual Architects and Historical Debates: 22 flashcards, 19 questions
  • Challenges and the Erosion of Consensus (1970s): 11 flashcards, 14 questions
  • The End of the Consensus and its Aftermath: 8 flashcards, 10 questions
  • International Parallels: The New Zealand Experience: 3 flashcards, 1 questions

Total Stats

  • Total Flashcards: 61
  • True/False Questions: 45
  • Multiple Choice Questions: 27
  • Total Questions: 72

Instructions

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Welcome to Your Curriculum Command Center

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The Core Concept: What is a "Kit"?

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Step 1: Laying the Foundation (The Authoring Tools)

This is where you build the core knowledge of your Kit. Use the left-side navigation panel to switch between these powerful authoring modules.

⚙️ Kit Manager: Your Kit's Identity

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🔗 Intelligent Mapper: The Smart Connection

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Step 2: The Magic (The Generator Suite)

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Study Guide: The Post-War Consensus in Britain: Political and Economic Landscape

Study Guide: The Post-War Consensus in Britain: Political and Economic Landscape

Foundations and Core Principles of the Post-War Consensus

The post-war consensus in Britain, also known as the post-war compromise, spanned approximately from the end of World War II until the late 1970s.

Answer: True

The post-war consensus in Britain is generally understood to have spanned the period from the end of World War II in 1945 until the late 1970s, not the end of World War I.

Related Concepts:

  • What was the post-war consensus in Britain, and what was its general timeframe?: The post-war consensus, also known as the post-war compromise, was a period in British political history, roughly from the end of World War II in Europe in 1945 until the late 1970s. During this era, the major political parties in Britain shared a common viewpoint supporting a specific economic order and social model. This consensus generally favored policies such as nationalization, strong trade unions, significant government regulation, high taxation, and an extensive welfare state.
  • When did the post-war consensus in Britain officially come to an end?: The post-war consensus in Britain concluded during the governance of Margaret Thatcher, the leader of the Conservative Party, in the late 1970s. Historians continue to debate the precise timing of its weakening and collapse, with some suggesting it began to erode even before Thatcher's election victory in 1979.
  • Who were the key intellectual figures whose ideas laid the groundwork for the post-war consensus?: The foundations of the post-war consensus were significantly shaped by liberal intellectuals in the 1930s, notably John Maynard Keynes and William Beveridge. Their plans for economic management and social reform gained traction as the wartime government recognized the need for societal engagement and promised a better post-war future.

The post-war consensus officially concluded with the election of Harold Wilson's Labour government in the early 1960s.

Answer: False

The post-war consensus did not conclude with Harold Wilson's government in the early 1960s. It is generally considered to have ended in the late 1970s with the rise of Margaret Thatcher.

Related Concepts:

  • What was the post-war consensus in Britain, and what was its general timeframe?: The post-war consensus, also known as the post-war compromise, was a period in British political history, roughly from the end of World War II in Europe in 1945 until the late 1970s. During this era, the major political parties in Britain shared a common viewpoint supporting a specific economic order and social model. This consensus generally favored policies such as nationalization, strong trade unions, significant government regulation, high taxation, and an extensive welfare state.
  • When did the post-war consensus in Britain officially come to an end?: The post-war consensus in Britain concluded during the governance of Margaret Thatcher, the leader of the Conservative Party, in the late 1970s. Historians continue to debate the precise timing of its weakening and collapse, with some suggesting it began to erode even before Thatcher's election victory in 1979.
  • What were the fundamental policy pillars that formed the basis of the post-war consensus?: The post-war consensus was built upon a coherent set of policies developed in the 1930s and promised during World War II. These included a commitment to a mixed economy, the principles of Keynesian economics, and the establishment of a comprehensive welfare state.

Foreign policy during the consensus generally opposed strong ties with the United States ('Atlanticism') and favored rapid decolonization.

Answer: False

Foreign policy during the consensus generally supported strong ties with the United States ('Atlanticism') and a planned process of imperial disengagement (decolonization).

Related Concepts:

  • What were the generally agreed-upon foreign policy principles during the post-war consensus period?: In foreign policy, the post-war consensus generally supported a set of views rooted in recent history. These included 'Atlanticism' (strong ties with the United States), the development of an independent nuclear deterrent, a planned process of imperial disengagement (decolonization), and a cautious approach to European integration.

The term 'post-war consensus' is exclusively used to describe the political period in Britain.

Answer: False

The term 'post-war consensus' is not exclusively used for Britain; it is also applied to describe a similar political period in New Zealand's history.

Related Concepts:

  • What was the post-war consensus in Britain, and what was its general timeframe?: The post-war consensus, also known as the post-war compromise, was a period in British political history, roughly from the end of World War II in Europe in 1945 until the late 1970s. During this era, the major political parties in Britain shared a common viewpoint supporting a specific economic order and social model. This consensus generally favored policies such as nationalization, strong trade unions, significant government regulation, high taxation, and an extensive welfare state.
  • When did the post-war consensus in Britain officially come to an end?: The post-war consensus in Britain concluded during the governance of Margaret Thatcher, the leader of the Conservative Party, in the late 1970s. Historians continue to debate the precise timing of its weakening and collapse, with some suggesting it began to erode even before Thatcher's election victory in 1979.
  • How is the term 'post-war consensus' applied outside of Britain, specifically in New Zealand?: Outside of Britain, the term 'post-war consensus' is used to describe an era in New Zealand's political history, spanning from the 1930s First Labour Government until the significant political shift in 1984. This period was characterized by a broad agreement on economic and social policies.

'Embedded liberalism' is a term associated with the post-war consensus paradigm, characterized by market liberalization and deregulation.

Answer: False

'Embedded liberalism' describes the post-war consensus where liberal economic policies were integrated with social welfare provisions and state intervention, not characterized by market liberalization and deregulation.

Related Concepts:

  • How is 'embedded liberalism' related to the post-war consensus?: 'Embedded liberalism' is a term applied globally to describe the post-war consensus paradigm, which existed from World War II until the economic crises of the 1970s. It contrasts with the subsequent shift towards neoliberalism.
  • How does the concept of 'embedded liberalism' contrast with later economic paradigms?: Embedded liberalism describes the post-war consensus period where liberal economic policies were integrated with social welfare provisions and state intervention. This contrasts sharply with the paradigm shift led by neoliberalism, which emphasizes free markets, deregulation, and reduced state intervention.
  • What were the fundamental policy pillars that formed the basis of the post-war consensus?: The post-war consensus was built upon a coherent set of policies developed in the 1930s and promised during World War II. These included a commitment to a mixed economy, the principles of Keynesian economics, and the establishment of a comprehensive welfare state.

The 'Attlee Settlement' refers to the economic policies implemented by Margaret Thatcher's government.

Answer: False

The 'Attlee Settlement' refers to the policies enacted by Clement Attlee's post-1945 Labour government, not the economic policies of Margaret Thatcher's government.

Related Concepts:

  • What is meant by 'The Attlee Settlement'?: 'The Attlee Settlement' refers to the set of policies and reforms implemented by the Labour government led by Clement Attlee after their landslide victory in the 1945 general election. These policies, drawing on the Beveridge Report and Keynesian economics, laid the foundation for the post-war consensus.

A planned process of imperial disengagement, or decolonization, was a foreign policy principle generally supported during the post-war consensus.

Answer: True

The managed process of decolonization was indeed a foreign policy tenet broadly accepted within the framework of the post-war consensus.

Related Concepts:

  • What were the generally agreed-upon foreign policy principles during the post-war consensus period?: In foreign policy, the post-war consensus generally supported a set of views rooted in recent history. These included 'Atlanticism' (strong ties with the United States), the development of an independent nuclear deterrent, a planned process of imperial disengagement (decolonization), and a cautious approach to European integration.
  • What were the fundamental policy pillars that formed the basis of the post-war consensus?: The post-war consensus was built upon a coherent set of policies developed in the 1930s and promised during World War II. These included a commitment to a mixed economy, the principles of Keynesian economics, and the establishment of a comprehensive welfare state.

What was the approximate timeframe of the post-war consensus in Britain?

Answer: 1945 to the late 1970s

The post-war consensus is generally understood to have spanned the period from the end of World War II in 1945 until the late 1970s.

Related Concepts:

  • What was the post-war consensus in Britain, and what was its general timeframe?: The post-war consensus, also known as the post-war compromise, was a period in British political history, roughly from the end of World War II in Europe in 1945 until the late 1970s. During this era, the major political parties in Britain shared a common viewpoint supporting a specific economic order and social model. This consensus generally favored policies such as nationalization, strong trade unions, significant government regulation, high taxation, and an extensive welfare state.
  • When did the post-war consensus in Britain officially come to an end?: The post-war consensus in Britain concluded during the governance of Margaret Thatcher, the leader of the Conservative Party, in the late 1970s. Historians continue to debate the precise timing of its weakening and collapse, with some suggesting it began to erode even before Thatcher's election victory in 1979.
  • Who were the key intellectual figures whose ideas laid the groundwork for the post-war consensus?: The foundations of the post-war consensus were significantly shaped by liberal intellectuals in the 1930s, notably John Maynard Keynes and William Beveridge. Their plans for economic management and social reform gained traction as the wartime government recognized the need for societal engagement and promised a better post-war future.

Which of the following was a generally agreed-upon foreign policy principle during the post-war consensus?

Answer: Strong ties with the United States ('Atlanticism')

Maintaining strong ties with the United States, known as 'Atlanticism,' was a key foreign policy principle generally supported during the post-war consensus.

Related Concepts:

  • What were the generally agreed-upon foreign policy principles during the post-war consensus period?: In foreign policy, the post-war consensus generally supported a set of views rooted in recent history. These included 'Atlanticism' (strong ties with the United States), the development of an independent nuclear deterrent, a planned process of imperial disengagement (decolonization), and a cautious approach to European integration.
  • What were the fundamental policy pillars that formed the basis of the post-war consensus?: The post-war consensus was built upon a coherent set of policies developed in the 1930s and promised during World War II. These included a commitment to a mixed economy, the principles of Keynesian economics, and the establishment of a comprehensive welfare state.
  • What economic philosophy underpinned the post-war consensus, and what was its primary goal?: The post-war consensus was strongly influenced by Keynesian economics, named after John Maynard Keynes. This approach advocated for a more active role for the government in managing the economy, specifically by influencing overall demand to balance it with output, aiming to prevent severe recessions and maintain full employment.

What was the general approach to European integration during the post-war consensus?

Answer: A cautious or hesitant approach ('reluctant Europeanism')

The approach to European integration during the consensus period was characterized by caution and hesitation, often termed 'reluctant Europeanism'.

Related Concepts:

  • What were the fundamental policy pillars that formed the basis of the post-war consensus?: The post-war consensus was built upon a coherent set of policies developed in the 1930s and promised during World War II. These included a commitment to a mixed economy, the principles of Keynesian economics, and the establishment of a comprehensive welfare state.
  • What was the general attitude towards European integration during the post-war consensus?: The post-war consensus foreign policy included a stance of 'reluctant Europeanism.' This suggests a cautious or hesitant approach towards deeper integration with Europe, rather than enthusiastic embrace, reflecting a complex mix of historical ties and national interests.
  • What was the post-war consensus in Britain, and what was its general timeframe?: The post-war consensus, also known as the post-war compromise, was a period in British political history, roughly from the end of World War II in Europe in 1945 until the late 1970s. During this era, the major political parties in Britain shared a common viewpoint supporting a specific economic order and social model. This consensus generally favored policies such as nationalization, strong trade unions, significant government regulation, high taxation, and an extensive welfare state.

The term 'embedded liberalism' is used to describe the post-war paradigm where:

Answer: Liberal economic policies were integrated with social welfare provisions

'Embedded liberalism' signifies a system where liberal market economies were balanced and constrained by social welfare provisions and state intervention, characteristic of the post-war consensus.

Related Concepts:

  • How is 'embedded liberalism' related to the post-war consensus?: 'Embedded liberalism' is a term applied globally to describe the post-war consensus paradigm, which existed from World War II until the economic crises of the 1970s. It contrasts with the subsequent shift towards neoliberalism.
  • How does the concept of 'embedded liberalism' contrast with later economic paradigms?: Embedded liberalism describes the post-war consensus period where liberal economic policies were integrated with social welfare provisions and state intervention. This contrasts sharply with the paradigm shift led by neoliberalism, which emphasizes free markets, deregulation, and reduced state intervention.

What was 'The Attlee Settlement'?

Answer: The set of reforms enacted by Clement Attlee's post-1945 Labour government

'The Attlee Settlement' refers to the significant legislative and policy reforms implemented by Clement Attlee's Labour government following their victory in the 1945 general election.

Related Concepts:

  • What is meant by 'The Attlee Settlement'?: 'The Attlee Settlement' refers to the set of policies and reforms implemented by the Labour government led by Clement Attlee after their landslide victory in the 1945 general election. These policies, drawing on the Beveridge Report and Keynesian economics, laid the foundation for the post-war consensus.

Key Policy Pillars: Welfare, Economy, and Labour

During the post-war consensus, major British political parties generally agreed on policies favoring nationalization, strong trade unions, significant government regulation, high taxation, and an extensive welfare state.

Answer: True

The consensus period was characterized by broad agreement among major political parties on policies that included nationalization, support for trade unions, extensive government regulation, high taxation, and the development of a comprehensive welfare state.

Related Concepts:

  • What was the post-war consensus in Britain, and what was its general timeframe?: The post-war consensus, also known as the post-war compromise, was a period in British political history, roughly from the end of World War II in Europe in 1945 until the late 1970s. During this era, the major political parties in Britain shared a common viewpoint supporting a specific economic order and social model. This consensus generally favored policies such as nationalization, strong trade unions, significant government regulation, high taxation, and an extensive welfare state.
  • When did the post-war consensus in Britain officially come to an end?: The post-war consensus in Britain concluded during the governance of Margaret Thatcher, the leader of the Conservative Party, in the late 1970s. Historians continue to debate the precise timing of its weakening and collapse, with some suggesting it began to erode even before Thatcher's election victory in 1979.
  • What were the fundamental policy pillars that formed the basis of the post-war consensus?: The post-war consensus was built upon a coherent set of policies developed in the 1930s and promised during World War II. These included a commitment to a mixed economy, the principles of Keynesian economics, and the establishment of a comprehensive welfare state.

Fundamental policy pillars of the post-war consensus included a commitment to a mixed economy, Keynesian economics, and the establishment of a comprehensive welfare state.

Answer: True

The consensus was indeed built upon these core tenets: a mixed economy balancing private and public sectors, Keynesian principles for economic management, and a comprehensive welfare state to ensure social security.

Related Concepts:

  • What were the fundamental policy pillars that formed the basis of the post-war consensus?: The post-war consensus was built upon a coherent set of policies developed in the 1930s and promised during World War II. These included a commitment to a mixed economy, the principles of Keynesian economics, and the establishment of a comprehensive welfare state.
  • What economic philosophy underpinned the post-war consensus, and what was its primary goal?: The post-war consensus was strongly influenced by Keynesian economics, named after John Maynard Keynes. This approach advocated for a more active role for the government in managing the economy, specifically by influencing overall demand to balance it with output, aiming to prevent severe recessions and maintain full employment.
  • What was the concept of the 'welfare state' as understood within the post-war consensus?: The welfare state, a key component of the post-war consensus, refers to a system where the government plays a significant role in protecting and promoting the economic and social well-being of its citizens. This typically includes provisions for healthcare, education, unemployment benefits, and pensions, funded through taxation.

Keynesian economics, central to the consensus, advocated for minimal government intervention in the economy.

Answer: False

Keynesian economics, central to the post-war consensus, advocated for an active role for government in managing the economy, not minimal intervention.

Related Concepts:

  • What is Keynesian economics, and why was it important to the post-war consensus?: Keynesian economics, developed by John Maynard Keynes, is a theory that advocates for government intervention to manage aggregate demand and stabilize the economy. It was central to the post-war consensus, aiming to prevent mass unemployment and economic downturns through active fiscal and monetary policies.
  • What economic philosophy underpinned the post-war consensus, and what was its primary goal?: The post-war consensus was strongly influenced by Keynesian economics, named after John Maynard Keynes. This approach advocated for a more active role for the government in managing the economy, specifically by influencing overall demand to balance it with output, aiming to prevent severe recessions and maintain full employment.
  • What were the fundamental policy pillars that formed the basis of the post-war consensus?: The post-war consensus was built upon a coherent set of policies developed in the 1930s and promised during World War II. These included a commitment to a mixed economy, the principles of Keynesian economics, and the establishment of a comprehensive welfare state.

A 'mixed economy' within the consensus framework involved a complete absence of private enterprise, with all industries under state control.

Answer: False

A 'mixed economy' within the consensus framework signified a combination of private enterprise and state ownership or control, not a complete absence of private enterprise.

Related Concepts:

  • What does the term 'mixed economy' refer to within the context of the post-war consensus?: A 'mixed economy,' as supported by the post-war consensus, involves a combination of private enterprise and state ownership or control. This often included the nationalisation of major industries, alongside private businesses, to achieve economic and social goals.

The National Health Service (NHS) was established as a core component of the post-war consensus, providing universal healthcare funded through taxation.

Answer: True

The establishment of the NHS was a landmark achievement of the consensus, embodying the principle of universal, tax-funded healthcare accessible to all citizens.

Related Concepts:

  • What was the role of the National Health Service (NHS) within the post-war consensus?: The establishment of the National Health Service (NHS) was a central achievement and a key component of the post-war consensus in Britain. It represented a commitment to providing universal healthcare, free at the point of use, funded through taxation.
  • What was the concept of the 'welfare state' as understood within the post-war consensus?: The welfare state, a key component of the post-war consensus, refers to a system where the government plays a significant role in protecting and promoting the economic and social well-being of its citizens. This typically includes provisions for healthcare, education, unemployment benefits, and pensions, funded through taxation.
  • What was the post-war consensus in Britain, and what was its general timeframe?: The post-war consensus, also known as the post-war compromise, was a period in British political history, roughly from the end of World War II in Europe in 1945 until the late 1970s. During this era, the major political parties in Britain shared a common viewpoint supporting a specific economic order and social model. This consensus generally favored policies such as nationalization, strong trade unions, significant government regulation, high taxation, and an extensive welfare state.

The Education Act 1944 modernized the British educational system and was considered an integral part of the post-war consensus.

Answer: True

The Education Act 1944 significantly reformed and expanded the educational system, aligning with the consensus's broader goals of social improvement and opportunity.

Related Concepts:

  • How did the Education Act 1944 contribute to the post-war consensus?: The Education Act 1944, a significant piece of legislation, modernized and expanded the British educational system. It was developed collaboratively by moderate figures from both Conservative and Labour parties and became an integral part of the post-war consensus, aiming to broaden educational opportunities.
  • What was the post-war consensus in Britain, and what was its general timeframe?: The post-war consensus, also known as the post-war compromise, was a period in British political history, roughly from the end of World War II in Europe in 1945 until the late 1970s. During this era, the major political parties in Britain shared a common viewpoint supporting a specific economic order and social model. This consensus generally favored policies such as nationalization, strong trade unions, significant government regulation, high taxation, and an extensive welfare state.

Nationalisation was a policy generally avoided during the post-war consensus.

Answer: False

Nationalisation was a tolerated or encouraged policy within the post-war consensus, particularly for key industries, not a policy that was generally avoided.

Related Concepts:

  • What role did nationalisation play in the post-war consensus?: Nationalisation, the process of transferring industries or assets from private to public ownership, was a tolerated or encouraged policy within the post-war consensus. It was often applied to major industries deemed crucial for national interest or economic planning.
  • What does the term 'mixed economy' refer to within the context of the post-war consensus?: A 'mixed economy,' as supported by the post-war consensus, involves a combination of private enterprise and state ownership or control. This often included the nationalisation of major industries, alongside private businesses, to achieve economic and social goals.
  • What was the post-war consensus in Britain, and what was its general timeframe?: The post-war consensus, also known as the post-war compromise, was a period in British political history, roughly from the end of World War II in Europe in 1945 until the late 1970s. During this era, the major political parties in Britain shared a common viewpoint supporting a specific economic order and social model. This consensus generally favored policies such as nationalization, strong trade unions, significant government regulation, high taxation, and an extensive welfare state.

Strong trade unions were generally suppressed during the post-war consensus to maintain economic stability.

Answer: False

Strong trade unions were generally supported or tolerated during the post-war consensus, seen as integral to industrial peace and workers' rights, rather than suppressed.

Related Concepts:

  • How were trade unions viewed within the post-war consensus?: Strong trade unions were generally supported or at least tolerated within the framework of the post-war consensus. Their role was often seen as integral to maintaining industrial peace and ensuring workers' rights, contributing to the broader social model.
  • What was the post-war consensus in Britain, and what was its general timeframe?: The post-war consensus, also known as the post-war compromise, was a period in British political history, roughly from the end of World War II in Europe in 1945 until the late 1970s. During this era, the major political parties in Britain shared a common viewpoint supporting a specific economic order and social model. This consensus generally favored policies such as nationalization, strong trade unions, significant government regulation, high taxation, and an extensive welfare state.
  • What were the fundamental policy pillars that formed the basis of the post-war consensus?: The post-war consensus was built upon a coherent set of policies developed in the 1930s and promised during World War II. These included a commitment to a mixed economy, the principles of Keynesian economics, and the establishment of a comprehensive welfare state.

The welfare state, a key component of the consensus, referred to a system where citizens were primarily responsible for their own social well-being.

Answer: False

The welfare state, a key component of the consensus, involved significant government responsibility for citizens' well-being, not a system where citizens were primarily responsible for themselves.

Related Concepts:

  • What was the concept of the 'welfare state' as understood within the post-war consensus?: The welfare state, a key component of the post-war consensus, refers to a system where the government plays a significant role in protecting and promoting the economic and social well-being of its citizens. This typically includes provisions for healthcare, education, unemployment benefits, and pensions, funded through taxation.
  • What were the fundamental policy pillars that formed the basis of the post-war consensus?: The post-war consensus was built upon a coherent set of policies developed in the 1930s and promised during World War II. These included a commitment to a mixed economy, the principles of Keynesian economics, and the establishment of a comprehensive welfare state.

Which of the following was a core policy pillar of the post-war consensus?

Answer: A comprehensive welfare state

The establishment and expansion of a comprehensive welfare state was a central and defining policy pillar of the post-war consensus.

Related Concepts:

  • What were the fundamental policy pillars that formed the basis of the post-war consensus?: The post-war consensus was built upon a coherent set of policies developed in the 1930s and promised during World War II. These included a commitment to a mixed economy, the principles of Keynesian economics, and the establishment of a comprehensive welfare state.
  • What economic philosophy underpinned the post-war consensus, and what was its primary goal?: The post-war consensus was strongly influenced by Keynesian economics, named after John Maynard Keynes. This approach advocated for a more active role for the government in managing the economy, specifically by influencing overall demand to balance it with output, aiming to prevent severe recessions and maintain full employment.
  • What was the post-war consensus in Britain, and what was its general timeframe?: The post-war consensus, also known as the post-war compromise, was a period in British political history, roughly from the end of World War II in Europe in 1945 until the late 1970s. During this era, the major political parties in Britain shared a common viewpoint supporting a specific economic order and social model. This consensus generally favored policies such as nationalization, strong trade unions, significant government regulation, high taxation, and an extensive welfare state.

What was the main objective of Keynesian economics as applied during the post-war consensus?

Answer: To prevent severe recessions and maintain full employment

Keynesian economics aimed to stabilize the economy by managing aggregate demand, thereby preventing severe recessions and ensuring high levels of employment.

Related Concepts:

  • What economic philosophy underpinned the post-war consensus, and what was its primary goal?: The post-war consensus was strongly influenced by Keynesian economics, named after John Maynard Keynes. This approach advocated for a more active role for the government in managing the economy, specifically by influencing overall demand to balance it with output, aiming to prevent severe recessions and maintain full employment.
  • What is Keynesian economics, and why was it important to the post-war consensus?: Keynesian economics, developed by John Maynard Keynes, is a theory that advocates for government intervention to manage aggregate demand and stabilize the economy. It was central to the post-war consensus, aiming to prevent mass unemployment and economic downturns through active fiscal and monetary policies.
  • What were the fundamental policy pillars that formed the basis of the post-war consensus?: The post-war consensus was built upon a coherent set of policies developed in the 1930s and promised during World War II. These included a commitment to a mixed economy, the principles of Keynesian economics, and the establishment of a comprehensive welfare state.

What did the term 'mixed economy' signify within the post-war consensus?

Answer: An economy where private enterprise and state ownership coexisted

A 'mixed economy' signified a system that combined elements of private enterprise with state ownership or control, often involving the nationalisation of key industries.

Related Concepts:

  • What does the term 'mixed economy' refer to within the context of the post-war consensus?: A 'mixed economy,' as supported by the post-war consensus, involves a combination of private enterprise and state ownership or control. This often included the nationalisation of major industries, alongside private businesses, to achieve economic and social goals.
  • What were the fundamental policy pillars that formed the basis of the post-war consensus?: The post-war consensus was built upon a coherent set of policies developed in the 1930s and promised during World War II. These included a commitment to a mixed economy, the principles of Keynesian economics, and the establishment of a comprehensive welfare state.
  • What was the post-war consensus in Britain, and what was its general timeframe?: The post-war consensus, also known as the post-war compromise, was a period in British political history, roughly from the end of World War II in Europe in 1945 until the late 1970s. During this era, the major political parties in Britain shared a common viewpoint supporting a specific economic order and social model. This consensus generally favored policies such as nationalization, strong trade unions, significant government regulation, high taxation, and an extensive welfare state.

The establishment of which institution was a central achievement and key component of the post-war consensus?

Answer: The National Health Service (NHS)

The creation of the National Health Service (NHS) was a cornerstone of the post-war consensus, representing a commitment to universal healthcare.

Related Concepts:

  • What were the fundamental policy pillars that formed the basis of the post-war consensus?: The post-war consensus was built upon a coherent set of policies developed in the 1930s and promised during World War II. These included a commitment to a mixed economy, the principles of Keynesian economics, and the establishment of a comprehensive welfare state.
  • What was the role of the National Health Service (NHS) within the post-war consensus?: The establishment of the National Health Service (NHS) was a central achievement and a key component of the post-war consensus in Britain. It represented a commitment to providing universal healthcare, free at the point of use, funded through taxation.
  • What was the post-war consensus in Britain, and what was its general timeframe?: The post-war consensus, also known as the post-war compromise, was a period in British political history, roughly from the end of World War II in Europe in 1945 until the late 1970s. During this era, the major political parties in Britain shared a common viewpoint supporting a specific economic order and social model. This consensus generally favored policies such as nationalization, strong trade unions, significant government regulation, high taxation, and an extensive welfare state.

Which piece of legislation modernized and expanded the British educational system, becoming part of the consensus?

Answer: The Education Act 1944

The Education Act 1944 significantly reformed the British education system and was considered an integral part of the post-war consensus.

Related Concepts:

  • How did the Education Act 1944 contribute to the post-war consensus?: The Education Act 1944, a significant piece of legislation, modernized and expanded the British educational system. It was developed collaboratively by moderate figures from both Conservative and Labour parties and became an integral part of the post-war consensus, aiming to broaden educational opportunities.

Which of the following best describes the role of nationalisation within the post-war consensus?

Answer: It was a policy applied to key industries deemed crucial for national interest.

Nationalisation was employed during the post-war consensus, typically applied to major industries considered vital for national interest or economic planning.

Related Concepts:

  • What role did nationalisation play in the post-war consensus?: Nationalisation, the process of transferring industries or assets from private to public ownership, was a tolerated or encouraged policy within the post-war consensus. It was often applied to major industries deemed crucial for national interest or economic planning.
  • What does the term 'mixed economy' refer to within the context of the post-war consensus?: A 'mixed economy,' as supported by the post-war consensus, involves a combination of private enterprise and state ownership or control. This often included the nationalisation of major industries, alongside private businesses, to achieve economic and social goals.
  • What were the fundamental policy pillars that formed the basis of the post-war consensus?: The post-war consensus was built upon a coherent set of policies developed in the 1930s and promised during World War II. These included a commitment to a mixed economy, the principles of Keynesian economics, and the establishment of a comprehensive welfare state.

How were trade unions generally viewed within the post-war consensus framework?

Answer: As integral to maintaining industrial peace and workers' rights

Trade unions were generally viewed as important stakeholders within the consensus, contributing to industrial stability and advocating for workers' rights.

Related Concepts:

  • How were trade unions viewed within the post-war consensus?: Strong trade unions were generally supported or at least tolerated within the framework of the post-war consensus. Their role was often seen as integral to maintaining industrial peace and ensuring workers' rights, contributing to the broader social model.
  • What was the post-war consensus in Britain, and what was its general timeframe?: The post-war consensus, also known as the post-war compromise, was a period in British political history, roughly from the end of World War II in Europe in 1945 until the late 1970s. During this era, the major political parties in Britain shared a common viewpoint supporting a specific economic order and social model. This consensus generally favored policies such as nationalization, strong trade unions, significant government regulation, high taxation, and an extensive welfare state.
  • What were the fundamental policy pillars that formed the basis of the post-war consensus?: The post-war consensus was built upon a coherent set of policies developed in the 1930s and promised during World War II. These included a commitment to a mixed economy, the principles of Keynesian economics, and the establishment of a comprehensive welfare state.

Intellectual Architects and Historical Debates

John Maynard Keynes and William Beveridge were key intellectual figures whose ideas laid the groundwork for the post-war consensus.

Answer: True

The economic theories of John Maynard Keynes and the social reform proposals of William Beveridge were foundational to the intellectual framework of the post-war consensus.

Related Concepts:

  • Who were the key intellectual figures whose ideas laid the groundwork for the post-war consensus?: The foundations of the post-war consensus were significantly shaped by liberal intellectuals in the 1930s, notably John Maynard Keynes and William Beveridge. Their plans for economic management and social reform gained traction as the wartime government recognized the need for societal engagement and promised a better post-war future.
  • What was the significance of the Beveridge Report in the development of the post-war consensus?: The Beveridge Report, published in 1942 by liberal economist William Beveridge, was a foundational document for the post-war consensus. It proposed a comprehensive welfare state in Great Britain, aiming to tackle major social challenges.
  • What economic philosophy underpinned the post-war consensus, and what was its primary goal?: The post-war consensus was strongly influenced by Keynesian economics, named after John Maynard Keynes. This approach advocated for a more active role for the government in managing the economy, specifically by influencing overall demand to balance it with output, aiming to prevent severe recessions and maintain full employment.

The Beveridge Report, published in 1942, proposed a decentralized system of private charities to address social challenges after the war.

Answer: False

The Beveridge Report proposed a comprehensive, state-led welfare system, not a decentralized network of private charities, to tackle social challenges.

Related Concepts:

  • What was the significance of the Beveridge Report in the development of the post-war consensus?: The Beveridge Report, published in 1942 by liberal economist William Beveridge, was a foundational document for the post-war consensus. It proposed a comprehensive welfare state in Great Britain, aiming to tackle major social challenges.
  • What were some of the key recommendations put forth in the Beveridge Report to establish a welfare state?: The Beveridge Report recommended several measures to reform the social insurance system and establish a welfare state. These included appointing a minister to oversee all insurance schemes, requiring contributions from employed individuals, providing benefits like old age pensions, maternity grants, funeral grants, and pensions for widows and work-related injuries, and establishing a new national health service.

William Beveridge identified 'Want', 'Disease', 'Ignorance', 'Squalor', and 'Idleness' as the 'five giants' hindering post-war reconstruction.

Answer: True

Beveridge famously identified these five 'giants' as the primary obstacles to social progress and economic recovery that the welfare state aimed to overcome.

Related Concepts:

  • What were the 'five giants' that William Beveridge identified as obstacles to post-war reconstruction in his influential report?: In the Beveridge Report, William Beveridge identified five key challenges facing Britain that needed to be overcome for reconstruction. These were termed the 'five giants on the road of reconstruction': Want (poverty), Disease, Ignorance, Squalor (poor living conditions), and Idleness (unemployment).
  • Can you elaborate on the meaning of the 'five giants' identified by Beveridge?: The 'five giants' identified by William Beveridge represented fundamental social ills that the welfare state aimed to combat. 'Want' referred to poverty and destitution, 'Disease' to illness and lack of healthcare, 'Ignorance' to inadequate education, 'Squalor' to poor housing and living conditions, and 'Idleness' to unemployment and lack of productive work.

Historian Ralph Miliband criticized the post-war consensus reforms for being too radical and leading to an overly socialist society.

Answer: False

Ralph Miliband, among others, criticized the consensus reforms for being too modest or conservative, arguing they hindered the creation of a fully socialist society, rather than being too radical.

Related Concepts:

  • What was the post-war consensus in Britain, and what was its general timeframe?: The post-war consensus, also known as the post-war compromise, was a period in British political history, roughly from the end of World War II in Europe in 1945 until the late 1970s. During this era, the major political parties in Britain shared a common viewpoint supporting a specific economic order and social model. This consensus generally favored policies such as nationalization, strong trade unions, significant government regulation, high taxation, and an extensive welfare state.
  • What criticisms did some historians, such as Ralph Miliband and Angus Calder, voice regarding the post-war consensus reforms?: Historians like Ralph Miliband expressed disappointment that the consensus represented a modest or even conservative package that potentially hindered the creation of a fully socialized society. Angus Calder felt the post-war reforms were an inadequate reward for wartime sacrifices and a betrayal of the public's hopes for a more just society.

Anthony Crosland's influential book 'The Future of Socialism' argued that nationalisation was the sole defining characteristic of socialism.

Answer: False

Crosland argued that nationalisation was merely a potential means, and that the true defining characteristic of socialism should be the pursuit of greater social equality.

Related Concepts:

  • What influential book by Anthony Crosland shaped post-war Labour Party thinking?: Anthony Crosland's 'The Future of Socialism,' published in 1956, was a highly influential work that became the seminal text for the 'revisionist' school of Labour Party thought. It argued for a re-evaluation of socialist goals and means, suggesting that traditional definitions based solely on nationalisation were outdated.
  • What was Anthony Crosland's central distinction in 'The Future of Socialism' regarding socialist goals?: Crosland distinguished between the 'means' and the 'ends' of socialism. He argued that nationalisation and public ownership were merely potential means, and that the true defining goal of the left should be the pursuit of greater social equality, with the specific level of equality being a secondary consideration.
  • How did Crosland's analysis in 'The Future of Socialism' address the nature of post-war capitalism?: Crosland argued that capitalism had fundamentally changed by the post-war era, challenging the Marxist notion that equality could not be achieved within a capitalist system. He observed that key features like the absolute rule of private property and the domination of the profit motive had diminished.

The term 'Butskellism' was used to describe the perceived convergence of economic policy between the Conservative and Labour parties in the 1950s.

Answer: True

'Butskellism' was a satirical term coined to represent the perceived similarity in economic policies between leading figures of the Conservative and Labour parties during the 1950s.

Related Concepts:

  • What was 'Butskellism,' and which political figures were associated with it?: Butskellism was a satirical term used in British politics during the 1950s to describe the perceived convergence of economic policy between the Conservative and Labour parties. It is associated with figures like Rab Butler (Conservative Chancellor of the Exchequer) and Hugh Gaitskell (Labour leader).
  • Where did the term 'Butskellism' originate?: The term 'Butskellism' was popularized by a leading article in The Economist magazine, written by Norman Macrae. The article humorously referred to a fictitious politician named 'Mr. Butskell' to represent the perceived middle ground shared by Butler and Gaitskell.

The primary debate among historians regarding the post-war consensus centers on whether it was a universally harmonious period with complete agreement.

Answer: True

A central debate among historians concerns the extent to which a genuine consensus existed, with many questioning its universality and harmony, suggesting it may have been more of a 'myth' or 'illusion'.

Related Concepts:

  • What is the primary debate among historians and political thinkers regarding the post-war consensus?: The main debate centers on the actual extent and reality of the post-war consensus. Many historians question whether it was as widespread or harmonious as sometimes portrayed, with some arguing it was more of a 'myth' or an 'illusion'.
  • What is historian Ben Pimlott's perspective on the post-war consensus?: Ben Pimlott views the concept of a post-war consensus as a 'mirage' or 'illusion' that fades upon closer examination. He contends that there was significant disputation and little genuine harmony during the period.
  • What were the fundamental policy pillars that formed the basis of the post-war consensus?: The post-war consensus was built upon a coherent set of policies developed in the 1930s and promised during World War II. These included a commitment to a mixed economy, the principles of Keynesian economics, and the establishment of a comprehensive welfare state.

Historian Kevin Jeffreys challenges the idea of a broad consensus by citing the Conservative Party's strong support for the National Health Service from its inception.

Answer: False

Kevin Jeffreys challenges the consensus narrative by highlighting the Conservative Party's opposition to the National Health Service, suggesting the consensus was not as broad as sometimes portrayed.

Related Concepts:

  • What evidence does historian Kevin Jeffreys present to challenge the idea of a broad consensus?: Kevin Jeffreys argues that much of Labour's program after 1945 was fiercely contested at the time, citing the Conservative Party's opposition to the National Health Service as an example. He suggests the 1945 election result was a 'shock' largely due to the circumstances of the war.

Ben Pimlott viewed the concept of a post-war consensus as a well-established historical reality, providing a stable framework for decades.

Answer: False

Ben Pimlott famously described the post-war consensus as a 'mirage' or 'illusion,' contending that it lacked genuine harmony and was subject to significant disputation.

Related Concepts:

  • What is historian Ben Pimlott's perspective on the post-war consensus?: Ben Pimlott views the concept of a post-war consensus as a 'mirage' or 'illusion' that fades upon closer examination. He contends that there was significant disputation and little genuine harmony during the period.
  • What was the post-war consensus in Britain, and what was its general timeframe?: The post-war consensus, also known as the post-war compromise, was a period in British political history, roughly from the end of World War II in Europe in 1945 until the late 1970s. During this era, the major political parties in Britain shared a common viewpoint supporting a specific economic order and social model. This consensus generally favored policies such as nationalization, strong trade unions, significant government regulation, high taxation, and an extensive welfare state.

Dennis Kavanagh and Peter Morris defend the consensus concept by highlighting major continuities in policies related to the economy, welfare, and foreign affairs.

Answer: True

Kavanagh and Morris support the idea of a consensus by pointing to significant policy continuities across major areas such as the economy, welfare provision, and foreign policy during the period.

Related Concepts:

  • How do Dennis Kavanagh and Peter Morris defend the concept of the post-war consensus?: Kavanagh and Morris defend the consensus by pointing to clear, major continuities in policies related to the economy, full employment, trade unions, and welfare programs. They also note agreement on significant foreign policy issues.

Dean Blackburn suggested the consensus stemmed primarily from shared ideological beliefs about desired political 'ends'.

Answer: False

Dean Blackburn proposed that the consensus might have originated more from shared epistemological assumptions and ideas about appropriate political conduct, rather than solely from shared ideological beliefs about desired political 'ends'.

Related Concepts:

  • What alternative explanation does Dean Blackburn propose for the post-war consensus, beyond ideological agreement?: Dean Blackburn suggests that the consensus may have stemmed less from shared ideological beliefs about desired political 'ends' and more from shared epistemological assumptions. This includes similar ideas about appropriate political conduct and a common suspicion of fixed political goals, favoring evolutionary change over radical shifts.

Economists Broadberry and Crafts argued that the post-war consensus hindered economic efficiency by discouraging competition.

Answer: True

Broadberry and Crafts suggested that certain structural elements within the post-war consensus, potentially by discouraging competition, may have impeded optimal economic efficiency.

Related Concepts:

  • What argument do economists Broadberry and Crafts make about the economic impact of the post-war consensus?: Economists Stephen Broadberry and Nicholas Crafts argued that certain anticompetitive practices embedded within the post-war consensus may have hindered the efficient functioning of the British economy. They suggested these practices impeded the optimal reallocation of resources to their most profitable uses.
  • What economic philosophy underpinned the post-war consensus, and what was its primary goal?: The post-war consensus was strongly influenced by Keynesian economics, named after John Maynard Keynes. This approach advocated for a more active role for the government in managing the economy, specifically by influencing overall demand to balance it with output, aiming to prevent severe recessions and maintain full employment.

Paul Addison's thesis argues the post-war consensus was a coherent package of policies developed in the 1930s and solidified during WWII.

Answer: True

Paul Addison's scholarship posits that the consensus was not merely a post-war phenomenon but had roots in earlier decades and was consolidated during the wartime period.

Related Concepts:

  • What is the core argument of Paul Addison's thesis on the post-war consensus?: Paul Addison's thesis posits that the post-war consensus was a coherent package of policies, including a mixed economy, Keynesianism, and a broad welfare state, developed in the 1930s and solidified during World War II. He argued this consensus characterized British politics until the late 1970s.
  • What were the fundamental policy pillars that formed the basis of the post-war consensus?: The post-war consensus was built upon a coherent set of policies developed in the 1930s and promised during World War II. These included a commitment to a mixed economy, the principles of Keynesian economics, and the establishment of a comprehensive welfare state.
  • Who were the key intellectual figures whose ideas laid the groundwork for the post-war consensus?: The foundations of the post-war consensus were significantly shaped by liberal intellectuals in the 1930s, notably John Maynard Keynes and William Beveridge. Their plans for economic management and social reform gained traction as the wartime government recognized the need for societal engagement and promised a better post-war future.

Who were the primary intellectual figures credited with laying the groundwork for the post-war consensus?

Answer: John Maynard Keynes and William Beveridge

The economic theories of John Maynard Keynes and the social reform proposals of William Beveridge were foundational to the intellectual framework of the post-war consensus.

Related Concepts:

  • Who were the key intellectual figures whose ideas laid the groundwork for the post-war consensus?: The foundations of the post-war consensus were significantly shaped by liberal intellectuals in the 1930s, notably John Maynard Keynes and William Beveridge. Their plans for economic management and social reform gained traction as the wartime government recognized the need for societal engagement and promised a better post-war future.
  • What were the fundamental policy pillars that formed the basis of the post-war consensus?: The post-war consensus was built upon a coherent set of policies developed in the 1930s and promised during World War II. These included a commitment to a mixed economy, the principles of Keynesian economics, and the establishment of a comprehensive welfare state.
  • What economic philosophy underpinned the post-war consensus, and what was its primary goal?: The post-war consensus was strongly influenced by Keynesian economics, named after John Maynard Keynes. This approach advocated for a more active role for the government in managing the economy, specifically by influencing overall demand to balance it with output, aiming to prevent severe recessions and maintain full employment.

The Beveridge Report identified five key challenges to post-war reconstruction, collectively known as:

Answer: The Five Giants

William Beveridge famously identified 'Want', 'Disease', 'Ignorance', 'Squalor', and 'Idleness' as the 'five giants' that needed to be conquered to build a better post-war society.

Related Concepts:

  • What were the 'five giants' that William Beveridge identified as obstacles to post-war reconstruction in his influential report?: In the Beveridge Report, William Beveridge identified five key challenges facing Britain that needed to be overcome for reconstruction. These were termed the 'five giants on the road of reconstruction': Want (poverty), Disease, Ignorance, Squalor (poor living conditions), and Idleness (unemployment).
  • What was the significance of the Beveridge Report in the development of the post-war consensus?: The Beveridge Report, published in 1942 by liberal economist William Beveridge, was a foundational document for the post-war consensus. It proposed a comprehensive welfare state in Great Britain, aiming to tackle major social challenges.
  • What were some of the key recommendations put forth in the Beveridge Report to establish a welfare state?: The Beveridge Report recommended several measures to reform the social insurance system and establish a welfare state. These included appointing a minister to oversee all insurance schemes, requiring contributions from employed individuals, providing benefits like old age pensions, maternity grants, funeral grants, and pensions for widows and work-related injuries, and establishing a new national health service.

Which of the following was NOT one of the 'five giants' identified by William Beveridge?

Answer: Bureaucracy (excessive administration)

The 'five giants' identified by Beveridge were Want, Disease, Ignorance, Squalor, and Idleness. Bureaucracy was not among them.

Related Concepts:

  • Can you elaborate on the meaning of the 'five giants' identified by Beveridge?: The 'five giants' identified by William Beveridge represented fundamental social ills that the welfare state aimed to combat. 'Want' referred to poverty and destitution, 'Disease' to illness and lack of healthcare, 'Ignorance' to inadequate education, 'Squalor' to poor housing and living conditions, and 'Idleness' to unemployment and lack of productive work.
  • What were the 'five giants' that William Beveridge identified as obstacles to post-war reconstruction in his influential report?: In the Beveridge Report, William Beveridge identified five key challenges facing Britain that needed to be overcome for reconstruction. These were termed the 'five giants on the road of reconstruction': Want (poverty), Disease, Ignorance, Squalor (poor living conditions), and Idleness (unemployment).

Anthony Crosland, in 'The Future of Socialism', argued that the primary goal of socialism should be:

Answer: The pursuit of greater social equality

Crosland argued that the fundamental goal of socialism was the achievement of greater social equality, distinguishing this 'end' from the 'means' such as nationalisation.

Related Concepts:

  • What was Anthony Crosland's central distinction in 'The Future of Socialism' regarding socialist goals?: Crosland distinguished between the 'means' and the 'ends' of socialism. He argued that nationalisation and public ownership were merely potential means, and that the true defining goal of the left should be the pursuit of greater social equality, with the specific level of equality being a secondary consideration.
  • How did Crosland's vision for socialism differ from that of earlier figures like Sidney and Beatrice Webb?: Crosland critiqued the 'grey, top-down bureaucratic vision' of socialism associated with Sidney and Beatrice Webb. He favored a more liberal approach, focusing on social equality as the primary end, rather than solely on state control and bureaucracy.
  • What influential book by Anthony Crosland shaped post-war Labour Party thinking?: Anthony Crosland's 'The Future of Socialism,' published in 1956, was a highly influential work that became the seminal text for the 'revisionist' school of Labour Party thought. It argued for a re-evaluation of socialist goals and means, suggesting that traditional definitions based solely on nationalisation were outdated.

What did the term 'Butskellism' satirically represent?

Answer: The convergence of economic policy between Labour and Conservatives

'Butskellism' was a satirical term used to denote the perceived similarity and convergence of economic policies between the Conservative and Labour parties in the 1950s.

Related Concepts:

  • What was 'Butskellism,' and which political figures were associated with it?: Butskellism was a satirical term used in British politics during the 1950s to describe the perceived convergence of economic policy between the Conservative and Labour parties. It is associated with figures like Rab Butler (Conservative Chancellor of the Exchequer) and Hugh Gaitskell (Labour leader).
  • Where did the term 'Butskellism' originate?: The term 'Butskellism' was popularized by a leading article in The Economist magazine, written by Norman Macrae. The article humorously referred to a fictitious politician named 'Mr. Butskell' to represent the perceived middle ground shared by Butler and Gaitskell.

Which historian described the post-war consensus as a 'mirage' or 'illusion' that fades upon closer examination?

Answer: Ben Pimlott

Historian Ben Pimlott critically assessed the post-war consensus, describing it as a 'mirage' or 'illusion' that lacked substantial agreement upon closer scrutiny.

Related Concepts:

  • What is historian Ben Pimlott's perspective on the post-war consensus?: Ben Pimlott views the concept of a post-war consensus as a 'mirage' or 'illusion' that fades upon closer examination. He contends that there was significant disputation and little genuine harmony during the period.
  • What is the primary debate among historians and political thinkers regarding the post-war consensus?: The main debate centers on the actual extent and reality of the post-war consensus. Many historians question whether it was as widespread or harmonious as sometimes portrayed, with some arguing it was more of a 'myth' or an 'illusion'.
  • Who were the key intellectual figures whose ideas laid the groundwork for the post-war consensus?: The foundations of the post-war consensus were significantly shaped by liberal intellectuals in the 1930s, notably John Maynard Keynes and William Beveridge. Their plans for economic management and social reform gained traction as the wartime government recognized the need for societal engagement and promised a better post-war future.

Challenges and the Erosion of Consensus (1970s)

The economic problems of the 1970s, such as high inflation and unemployment, strengthened the belief in Keynesian policies.

Answer: False

The economic problems of the 1970s, often termed 'stagflation,' undermined confidence in Keynesian policies and led to a search for alternative economic approaches.

Related Concepts:

  • How did the economic challenges of the 1970s lead to a shift away from Keynesian economics?: The perceived failure of Keynesian economics to address the stagflation and economic crises of the 1970s led to a decline in its influence. Monetarism, championed by economists like Milton Friedman, gained prominence as an alternative framework, emphasizing control of the money supply.
  • What economic problems in the 1970s led to a questioning of the post-war consensus?: The 1970s saw Britain grappling with economic paralysis, characterized by high inflation, unemployment, and industrial unrest. These issues undermined the effectiveness of Keynesian policies and the existing economic model.
  • What economic events in the 1970s led to the end of the post-war economic boom and challenged the consensus?: The economic crises of the 1970s, including the Secondary banking crisis of 1973–1975 and global events like the 1973 oil crisis, contributed to the end of the post-war economic boom. These challenges led to increased inflation, unemployment, and a questioning of the prevailing economic policies.

In the 1970s, Monetarism, championed by Milton Friedman, gained influence as an alternative to Keynesian economics.

Answer: True

As Keynesian economics faced challenges in the 1970s, Monetarism, advocating for control of the money supply, gained significant traction as a competing economic philosophy.

Related Concepts:

  • As Keynesianism faced challenges, what alternative economic theories gained influence in the 1970s?: In the 1970s, market-oriented conservatives rediscovered economists like Friedrich Hayek and embraced Monetarism, championed by Milton Friedman. Monetarism began to discredit Keynesian economics as the solution to economic crises.
  • How did the economic challenges of the 1970s lead to a shift away from Keynesian economics?: The perceived failure of Keynesian economics to address the stagflation and economic crises of the 1970s led to a decline in its influence. Monetarism, championed by economists like Milton Friedman, gained prominence as an alternative framework, emphasizing control of the money supply.

The 'Barber Boom' of 1972, initiated by tax cuts, successfully led to sustained economic growth without inflation.

Answer: False

The 'Barber Boom' ultimately resulted in stagflation (high inflation and stagnant growth) and a devaluation of the pound, rather than sustained, non-inflationary growth.

Related Concepts:

  • What was the 'Barber Boom,' and what were its economic consequences?: The 'Barber Boom' refers to a period of economic expansion initiated by Chancellor of the Exchequer Anthony Barber's tax-cutting budget in 1972. However, this boom ultimately ended in stagflation (a combination of stagnant economic growth and high inflation) and a devaluation of the pound sterling.

The 1973 oil crisis was a global event that eased economic pressure on Britain during the 1970s.

Answer: False

The 1973 oil crisis significantly increased energy prices globally, exacerbating economic pressures on Britain and contributing to the challenges faced by the post-war consensus.

Related Concepts:

  • Besides domestic issues, what global event significantly pressured the post-war consensus in the 1970s?: The 1973 oil crisis, which led to a sharp increase in energy prices, was a major global event that put significant pressure on the economic stability underpinning the post-war consensus. This was compounded by domestic problems like inflation and industrial disputes.
  • What economic events in the 1970s led to the end of the post-war economic boom and challenged the consensus?: The economic crises of the 1970s, including the Secondary banking crisis of 1973–1975 and global events like the 1973 oil crisis, contributed to the end of the post-war economic boom. These challenges led to increased inflation, unemployment, and a questioning of the prevailing economic policies.

The sterling crisis of 1976 forced the British government to request a loan from the International Monetary Fund (IMF).

Answer: True

A severe sterling crisis in 1976, marked by a sharp fall in the pound's value and depleted foreign reserves, compelled the British government to seek a substantial loan from the IMF.

Related Concepts:

  • What happened to the pound sterling's currency status during the 1976 crisis?: During the 1976 sterling crisis, the pound sterling transitioned from a pegged currency to a floating currency. This change occurred as the Bank of England exhausted its foreign reserves trying to maintain its value, leading to a significant plunge in its worth against other currencies like the US dollar.
  • What led to the sterling crisis of 1976, and what was its immediate impact?: Expectations of worsening inflation and a 'double deficit' (likely referring to budget and balance of payments deficits) precipitated a sterling crisis in early 1976. The pound fell dramatically against the dollar, and the Bank of England exhausted its foreign reserves attempting to support the currency.

The IMF loan conditions in 1976 required the British government to increase public spending and reduce taxes.

Answer: False

IMF loan conditions typically involve austerity measures; in 1976, Britain was required to implement significant government spending cuts and tighten monetary policy.

Related Concepts:

  • What conditions did the International Monetary Fund impose in return for the 1976 loan to Britain?: In exchange for the massive loan, the IMF demanded significant government spending cuts and a tightening of the money supply in Britain. This marked a major suspension of Keynesian economic policies.
  • What led to the sterling crisis of 1976, and what was its immediate impact?: Expectations of worsening inflation and a 'double deficit' (likely referring to budget and balance of payments deficits) precipitated a sterling crisis in early 1976. The pound fell dramatically against the dollar, and the Bank of England exhausted its foreign reserves attempting to support the currency.

Prime Minister James Callaghan declared in 1976 that the previous approach of spending one's way out of recession was still viable.

Answer: False

In 1976, James Callaghan famously stated that the strategy of stimulating the economy through spending was no longer viable, acknowledging its inflationary consequences.

Related Concepts:

  • What significant statement did Prime Minister James Callaghan make in 1976 regarding economic policy?: At the height of the 1976 sterling crisis, James Callaghan declared to the Labour Party Conference that the previous approach of spending one's way out of recession by cutting taxes and boosting government spending was no longer viable. He acknowledged that such policies, if they ever worked, had only done so by increasing inflation, leading to higher unemployment later.

The economic crises of the 1970s, including the 1973 oil crisis, helped to end the post-war economic boom and challenged the consensus.

Answer: True

The economic turbulence of the 1970s, marked by events like the oil crisis and domestic inflation, significantly disrupted the post-war economic prosperity and questioned the viability of the prevailing consensus.

Related Concepts:

  • What economic events in the 1970s led to the end of the post-war economic boom and challenged the consensus?: The economic crises of the 1970s, including the Secondary banking crisis of 1973–1975 and global events like the 1973 oil crisis, contributed to the end of the post-war economic boom. These challenges led to increased inflation, unemployment, and a questioning of the prevailing economic policies.
  • Besides domestic issues, what global event significantly pressured the post-war consensus in the 1970s?: The 1973 oil crisis, which led to a sharp increase in energy prices, was a major global event that put significant pressure on the economic stability underpinning the post-war consensus. This was compounded by domestic problems like inflation and industrial disputes.

The pound sterling's status changed from a pegged currency to a floating currency during the 1976 crisis.

Answer: True

The 1976 sterling crisis led to the abandonment of the pegged exchange rate system, and the pound began to float freely against other currencies.

Related Concepts:

  • What happened to the pound sterling's currency status during the 1976 crisis?: During the 1976 sterling crisis, the pound sterling transitioned from a pegged currency to a floating currency. This change occurred as the Bank of England exhausted its foreign reserves trying to maintain its value, leading to a significant plunge in its worth against other currencies like the US dollar.
  • What led to the sterling crisis of 1976, and what was its immediate impact?: Expectations of worsening inflation and a 'double deficit' (likely referring to budget and balance of payments deficits) precipitated a sterling crisis in early 1976. The pound fell dramatically against the dollar, and the Bank of England exhausted its foreign reserves attempting to support the currency.

What major economic issues in the 1970s led to widespread questioning of the post-war consensus policies?

Answer: Economic stagnation and high inflation ('stagflation')

The phenomenon of 'stagflation'—a combination of stagnant economic growth and high inflation—severely challenged the effectiveness of the economic policies underpinning the post-war consensus.

Related Concepts:

  • What economic events in the 1970s led to the end of the post-war economic boom and challenged the consensus?: The economic crises of the 1970s, including the Secondary banking crisis of 1973–1975 and global events like the 1973 oil crisis, contributed to the end of the post-war economic boom. These challenges led to increased inflation, unemployment, and a questioning of the prevailing economic policies.
  • Besides domestic issues, what global event significantly pressured the post-war consensus in the 1970s?: The 1973 oil crisis, which led to a sharp increase in energy prices, was a major global event that put significant pressure on the economic stability underpinning the post-war consensus. This was compounded by domestic problems like inflation and industrial disputes.
  • What economic problems in the 1970s led to a questioning of the post-war consensus?: The 1970s saw Britain grappling with economic paralysis, characterized by high inflation, unemployment, and industrial unrest. These issues undermined the effectiveness of Keynesian policies and the existing economic model.

Which economic theory gained prominence in the 1970s as an alternative to Keynesianism, emphasizing control of the money supply?

Answer: Monetarism

Monetarism, with its focus on controlling the money supply, emerged as a significant alternative to Keynesian economics during the economic difficulties of the 1970s.

Related Concepts:

  • How did the economic challenges of the 1970s lead to a shift away from Keynesian economics?: The perceived failure of Keynesian economics to address the stagflation and economic crises of the 1970s led to a decline in its influence. Monetarism, championed by economists like Milton Friedman, gained prominence as an alternative framework, emphasizing control of the money supply.
  • As Keynesianism faced challenges, what alternative economic theories gained influence in the 1970s?: In the 1970s, market-oriented conservatives rediscovered economists like Friedrich Hayek and embraced Monetarism, championed by Milton Friedman. Monetarism began to discredit Keynesian economics as the solution to economic crises.
  • What is Keynesian economics, and why was it important to the post-war consensus?: Keynesian economics, developed by John Maynard Keynes, is a theory that advocates for government intervention to manage aggregate demand and stabilize the economy. It was central to the post-war consensus, aiming to prevent mass unemployment and economic downturns through active fiscal and monetary policies.

What global event in 1973 significantly pressured the economic stability underpinning the post-war consensus?

Answer: The oil crisis leading to increased energy prices

The 1973 oil crisis, which caused a dramatic surge in energy prices, placed considerable strain on the economic foundations of the post-war consensus.

Related Concepts:

  • Besides domestic issues, what global event significantly pressured the post-war consensus in the 1970s?: The 1973 oil crisis, which led to a sharp increase in energy prices, was a major global event that put significant pressure on the economic stability underpinning the post-war consensus. This was compounded by domestic problems like inflation and industrial disputes.
  • What economic events in the 1970s led to the end of the post-war economic boom and challenged the consensus?: The economic crises of the 1970s, including the Secondary banking crisis of 1973–1975 and global events like the 1973 oil crisis, contributed to the end of the post-war economic boom. These challenges led to increased inflation, unemployment, and a questioning of the prevailing economic policies.

Why did the British government request a loan from the International Monetary Fund (IMF) in 1976?

Answer: Due to a sterling crisis and depleted foreign reserves

The UK sought an IMF loan in 1976 primarily because of a severe sterling crisis, which depleted the nation's foreign currency reserves.

Related Concepts:

  • What conditions did the International Monetary Fund impose in return for the 1976 loan to Britain?: In exchange for the massive loan, the IMF demanded significant government spending cuts and a tightening of the money supply in Britain. This marked a major suspension of Keynesian economic policies.
  • What happened to the pound sterling's currency status during the 1976 crisis?: During the 1976 sterling crisis, the pound sterling transitioned from a pegged currency to a floating currency. This change occurred as the Bank of England exhausted its foreign reserves trying to maintain its value, leading to a significant plunge in its worth against other currencies like the US dollar.
  • What led to the sterling crisis of 1976, and what was its immediate impact?: Expectations of worsening inflation and a 'double deficit' (likely referring to budget and balance of payments deficits) precipitated a sterling crisis in early 1976. The pound fell dramatically against the dollar, and the Bank of England exhausted its foreign reserves attempting to support the currency.

What was a key condition imposed by the IMF for the 1976 loan to Britain?

Answer: Significant government spending cuts

A primary condition of the 1976 IMF loan was that the British government implement substantial cuts in public spending.

Related Concepts:

  • What conditions did the International Monetary Fund impose in return for the 1976 loan to Britain?: In exchange for the massive loan, the IMF demanded significant government spending cuts and a tightening of the money supply in Britain. This marked a major suspension of Keynesian economic policies.
  • What led to the sterling crisis of 1976, and what was its immediate impact?: Expectations of worsening inflation and a 'double deficit' (likely referring to budget and balance of payments deficits) precipitated a sterling crisis in early 1976. The pound fell dramatically against the dollar, and the Bank of England exhausted its foreign reserves attempting to support the currency.

The End of the Consensus and its Aftermath

The Conservative Party fully rejected all fundamental changes introduced by the post-war Labour government, promising to reverse them.

Answer: False

The Conservative Party largely accepted many of the fundamental changes introduced by the Labour government and promised not to reverse them, indicating a degree of consensus even among opposition.

Related Concepts:

  • How did the Conservative Party generally react to the policies implemented by the Labour government that formed the basis of the consensus?: The Conservative Party largely accepted many of the fundamental changes introduced by the post-war Labour government. They even promised not to reverse these policies, as evidenced in their 1947 Industrial Charter, and often claimed they could manage institutions like the National Health Service more effectively.

The 'Winter of Discontent' in 1978-1979 involved widespread strikes that bolstered support for the collectivist consensus.

Answer: False

The 'Winter of Discontent' is widely seen as having damaged public support for the collectivist consensus and discredited the prevailing economic and industrial relations model.

Related Concepts:

  • What event in 1978-1979 is described as destroying the collectivist consensus?: The 'Winter of Discontent,' a period of widespread strikes and industrial action in the winter of 1978-1979, is cited as a major factor that destroyed Britain's collectivist consensus and discredited the Keynesian welfare state.

The 'state overload thesis' suggests that the consensus period led to an imbalance where government demands exceeded its delivery capacity.

Answer: True

The state overload thesis posits that the extensive reach and demands placed upon government during the consensus era eventually outstripped its capacity to deliver effectively, contributing to its breakdown.

Related Concepts:

  • What is the 'state overload thesis,' and how is it linked to the collapse of the consensus?: The state overload thesis suggests that during the consensus years, the increasing demands placed on government created an imbalance between what the state could realistically deliver and the expectations it generated. This cycle of more demands leading to more government intervention, and thus more expectations, is believed to have contributed to the eventual breakdown of the consensus and the rise of the New Right.

Margaret Thatcher's Housing Act 1980 allowed tenants the right to buy their council homes, reversing a key aspect of state provision.

Answer: True

The Housing Act 1980 introduced the 'right to buy' policy, enabling council house tenants to purchase their homes, which represented a significant shift away from state provision.

Related Concepts:

  • What specific policy change did Margaret Thatcher introduce with the Housing Act 1980?: Margaret Thatcher's Housing Act 1980 allowed council house residents the right to buy their homes. This policy reversed a key aspect of the post-war consensus, which had involved significant state provision of housing.

Margaret Thatcher dismantled the National Health Service entirely, replacing it with private healthcare providers.

Answer: False

While Thatcher's government introduced reforms, it did not dismantle the NHS entirely. The principle of universal, tax-funded healthcare was largely maintained.

Related Concepts:

  • What role did Margaret Thatcher play in ending the post-war consensus?: Margaret Thatcher, as leader of the Conservative Party, is credited with bringing the post-war consensus to an end. Her government implemented New Right policies, challenging the established consensus on economic management, privatization, and the role of the state.
  • Did Margaret Thatcher dismantle all elements of the post-war consensus, particularly the NHS?: No, Margaret Thatcher did not dismantle all elements of the post-war consensus. She notably retained key aspects, including the principle of nationalised healthcare, famously promising in 1982 that the National Health Service was 'safe in our hands.'

Margaret Thatcher's election victory in 1979 marked the definitive end of the post-war consensus.

Answer: True

Margaret Thatcher's rise to power in 1979 is widely regarded as a pivotal moment that signaled the end of the post-war consensus and ushered in a new era of political and economic ideology.

Related Concepts:

  • When did the post-war consensus in Britain officially come to an end?: The post-war consensus in Britain concluded during the governance of Margaret Thatcher, the leader of the Conservative Party, in the late 1970s. Historians continue to debate the precise timing of its weakening and collapse, with some suggesting it began to erode even before Thatcher's election victory in 1979.
  • What role did Margaret Thatcher play in ending the post-war consensus?: Margaret Thatcher, as leader of the Conservative Party, is credited with bringing the post-war consensus to an end. Her government implemented New Right policies, challenging the established consensus on economic management, privatization, and the role of the state.
  • Did Margaret Thatcher dismantle all elements of the post-war consensus, particularly the NHS?: No, Margaret Thatcher did not dismantle all elements of the post-war consensus. She notably retained key aspects, including the principle of nationalised healthcare, famously promising in 1982 that the National Health Service was 'safe in our hands.'

The 'Winter of Discontent' in 1978-1979 is significant because it:

Answer: Destroyed the collectivist consensus and discredited the welfare state

The widespread industrial action during the 'Winter of Discontent' significantly eroded public trust in the collectivist model and the welfare state, contributing to the end of the consensus era.

Related Concepts:

  • What event in 1978-1979 is described as destroying the collectivist consensus?: The 'Winter of Discontent,' a period of widespread strikes and industrial action in the winter of 1978-1979, is cited as a major factor that destroyed Britain's collectivist consensus and discredited the Keynesian welfare state.

Margaret Thatcher's Housing Act 1980 is notable for introducing:

Answer: The right for council house residents to buy their homes

The Housing Act 1980 granted council house tenants the right to purchase their homes, a significant policy shift away from state housing provision.

Related Concepts:

  • What specific policy change did Margaret Thatcher introduce with the Housing Act 1980?: Margaret Thatcher's Housing Act 1980 allowed council house residents the right to buy their homes. This policy reversed a key aspect of the post-war consensus, which had involved significant state provision of housing.

Despite challenging many consensus policies, Margaret Thatcher maintained which key aspect of the post-war settlement?

Answer: The principle of universal, tax-funded healthcare (NHS)

Margaret Thatcher's governments largely maintained the principle of the National Health Service (NHS) as a universal, tax-funded healthcare system.

Related Concepts:

  • What role did Margaret Thatcher play in ending the post-war consensus?: Margaret Thatcher, as leader of the Conservative Party, is credited with bringing the post-war consensus to an end. Her government implemented New Right policies, challenging the established consensus on economic management, privatization, and the role of the state.
  • Did Margaret Thatcher dismantle all elements of the post-war consensus, particularly the NHS?: No, Margaret Thatcher did not dismantle all elements of the post-war consensus. She notably retained key aspects, including the principle of nationalised healthcare, famously promising in 1982 that the National Health Service was 'safe in our hands.'
  • When did the post-war consensus in Britain officially come to an end?: The post-war consensus in Britain concluded during the governance of Margaret Thatcher, the leader of the Conservative Party, in the late 1970s. Historians continue to debate the precise timing of its weakening and collapse, with some suggesting it began to erode even before Thatcher's election victory in 1979.

What does the 'state overload thesis' suggest contributed to the breakdown of the post-war consensus?

Answer: An imbalance between government demands and its delivery capacity

The state overload thesis argues that the consensus period created an unsustainable situation where government demands and public expectations exceeded the state's capacity to deliver, leading to its breakdown.

Related Concepts:

  • What is the 'state overload thesis,' and how is it linked to the collapse of the consensus?: The state overload thesis suggests that during the consensus years, the increasing demands placed on government created an imbalance between what the state could realistically deliver and the expectations it generated. This cycle of more demands leading to more government intervention, and thus more expectations, is believed to have contributed to the eventual breakdown of the consensus and the rise of the New Right.

International Parallels: The New Zealand Experience

In New Zealand, the post-war consensus was built around a 'historic compromise' involving government-guaranteed rights for workers in exchange for union-employer cooperation.

Answer: True

New Zealand's post-war era featured a 'historic compromise' where the government guaranteed worker rights and security in return for cooperation between unions and employers.

Related Concepts:

  • What was the nature of the 'historic compromise' in New Zealand's post-war era?: In New Zealand, the post-war consensus was built around a 'historic compromise' between different societal classes. This involved the government promising rights, health, and employment security for all workers in exchange for cooperation between unions and employers.
  • How is the term 'post-war consensus' applied outside of Britain, specifically in New Zealand?: Outside of Britain, the term 'post-war consensus' is used to describe an era in New Zealand's political history, spanning from the 1930s First Labour Government until the significant political shift in 1984. This period was characterized by a broad agreement on economic and social policies.
  • How were trade unions viewed within the post-war consensus?: Strong trade unions were generally supported or at least tolerated within the framework of the post-war consensus. Their role was often seen as integral to maintaining industrial peace and ensuring workers' rights, contributing to the broader social model.

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