What effect did World War 2 have on Britains power and influence up to 1955?

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What effect did World War 2 have on Britain’s power and influence up to 1955?

 

In 1945 the labour government under Clement Atlee had promised to rebuild the country that had been significantly damaged by war in many areas. This was largely successful in economy, as the decade after 1945 was one of rapid industrial growth, low inflation, full employment and higher living standards. However there were considerable problems along the way. World War two had left much Britain’s economy in a sorry state of affairs, mainly because Britain had invested so much of itself in the war, that when it ended it was left with many problems. The demand for weapons lead to a massive increase in productivity, which was useless to post war Britain as this drive had been focussed entirely on war materials, and did not create a better economic climate for Britain itself. It is true that there was a high demand for almost everything the British industry made, and therefore exports increased. However in concentrating on manufacturing for export, Britain failed to modernise its industry, which hampered its ability to compete in the post war world. During the war, Britain had lacked the foresight to prepare for industry when weapons were not needed, and this was a significant hindrance after the war. By 1945, Britain was spending a gruesome £6.1 billion on defence, costing Britain nearly half of its GNP and in this setting itself up for future economic difficulties. It was not just Britain’s own money that it had invested in the war effort. Throughout the war it had built up vast debts, another reason for Britain’s economic problems. Britain did not have sufficient wealth to fight a war, and had therefore engaged in the Lend lease scheme in 1941, through which the USA had supported the war effort with materials. The end of the scheme left Britain in need of money, as even after the war its military costs were still high. To solve this an extra loan of $5.5 billion was arranged, which although helping Britain financially, hindered it in terms of its reputation as this showed the weakness of the British economy. Economic might is a major factor that determines the power and status of any country. By 1945 and the end of the war Britain owed £3billion to its creditors. Although the Second World War had saddled the British economy with huge financial problems, the economy was still great in comparison to other powers. Even with its debts and somewhat behind the times industry, Britain’s economy was strong enough to keep its reputation as an international superpower.

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            After the Second World War there were certain conditions that made a strong relationship between the USA and Britain inevitable. While the war had financially drained Britain, the USA had emerged as the strongest economic and military power in the world. It was clear that Britain, even though already heavily indebted to the USA through the Loan Lease scheme, and the further loan of $5.5bn, would need to use America’s might as a crutch to recover from the crippling effects of the war. There was no doubt that Britain regarded a firm alliance with the USA as central to ...

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