Using the sources and your own knowledge, to what extent were the government policies the main reason for sluggish economic growth between 1951 and 1964?
Alicia Fleming 13E British History Mr Kellaway
15/12/03 Sources Essay Words: 1,105
Using the sources and your own knowledge, to what extent were the government policies the main reason for sluggish economic growth between 1951 and 1964?
In my opinion, the “sluggish economic growth” in the context of this period would be better termed as “relative economic decline”. This suggests that Britain’s economy grew 2.5% per year by the 1960s, however, at a rate far slower than its foreign competitors, such as, Germany and Japan. There are many factors that led to “relative economic decline” such as, poor industrial relations, large amounts of money spent on defences, government policies and the most important factor, a decline in industrial productivity.
The most affecting factor leading to Britain’s economic situation was low industrial productivity. This was caused by a sequence of factors, such as poor management and insufficient technology leading to poor industrial relations and strikes. This negative multiplier effect resulted in poor economic performance and low wages for workers. The low wages further enhanced the problems by increasing tension between workers and managers, which led to a greater frequency of strikes. Due to increased strikes, productivity was reduced, as most workers were too busy striking. Between 1960 and 1964 workers spent only 48% of their time at a machine. Overall the low productivity eventually led to “relative economic decline”. Poor management is responsible for low productivity and the strikes, because the managers were poorly trained and paid themselves high rewards whilst encouraging restraints on workers. Furthermore, productivity was affected by the insufficient technology and machinery Britain possessed compared to the latest and most productive equipment that foreign competitors had, such as France. This is evident from the productivity figures between 1952 and 1956, Britain’s output increased by 15%, whereas France’s grew by 20% and West Germany by 38%. This low productivity and therefore “relative decline” can be blamed on the government, because during the 1950s the Conservatives were too weak to prevent wage increases which Trade Unions demanded, because they did not want to jeopardise their paper-thin majority, which led to high inflation. On the other hand, inter-rivalry unionists did not help themselves. They were too busy fighting each other so industrial production decreased behind foreign competitors.