Starter activity: use the picture clues to create a definition of ‘affluence’

Had Britain never really had it so good? Enquiry question: Had Britain never really had it so good? Learning Outcomes:- All:- Will be able to explain what affluence is and recall some key examples Grades E and D Most:- Will be able to offer detailed explanations and offer judgements reaching a balanced conclusion. Grades C and B Some:- Will be able to link the reasons together in a sensible fashion and place them in an overall context of the time. Grade A Learning Objective: To know the state of the British economy Judge the extent to which Britain was an affluent society.

Had Britain never had it so good? Task: Using the information from the video, Produce lists of positives and negatives of life in Britain in 1957. Be ready to share your ideas! At this point, do you think ‘Britain never had it so good’ Then: Think about the following aspects of life and whether these were mainly positive, or negative. a) Economy b) Social and cultural aspects c) Position of government

Age of Affluence In what ways did affluence impact on society? The war was over, rationing ceased, coal and electricity came back. Almost at once, affluence came. Suddenly, the shops were piled high with all sorts of goods. Boom was in the air. The nation rapidly moved forward from post-war harshness to Macmillan's "most of our people have never had it so good". From 1951 to 1964 there was uninterrupted full employment, while productivity increased faster than in any other period of comparable length in the twentieth century. Total production increased by 40 per cent, average earnings by 30 per cent, while personal consumption, measured in terms of ownership of cars and televisions, rose from 2.25 million to 8 million and 1 million to 13 million respectively. The "age of affluence" was also the "age of youth". The novelty of youth in this period was its access to the benefits of affluence and, as a consequence, the ability to originate a particular cultural status. The 1950s discovered not so much "youth " as the "teenager" and the distinctive fact about teenagers' behaviour was economic: they spent a lot of money on clothes, records, concerts, make-up, magazines - all things that give immediate pleasure. Affluence also changed the status of women. It was believed that affluence was less female labour than female consumption. The "housewife" - with her new washing machine, vacuum cleaner and New Look fashion wear - was the one to whom affluence was aimed and who was its prime beneficiary. In what ways did affluence impact on society? Design a summary diagram to answer this question. Divide it into two, considering the causes of affluence, and the consequences.

Balance of Payments and ‘Stop-Go’ Policies The economic picture was not as positive as it seemed. The growth in wages outstripped the rate of increase in production – this caused inflation. The Conservatives were constantly faced with the task of how to maintain growth and employment at the same time as keeping prices steady. Macmillan’s answer was partly in an appeal to industry and the public: ‘what we need is restraint and common sense – restraint in the demands we make and common sense in how we spend our income.’ Government controls had to be used to curb excessive inflation and taxation remained high, both to control excessive spending that would lead to an unwanted increase in imports to pay for rising costs of public services. This pattern, where the government attempted to control growth when it was in danger is known as stop-go economics.

Balance of Payments and ‘Stop-Go’ Policies Although higher salaries had created a large internal consumer demand, they did not encourage manufacturers to increase their export trade which would have helped bolster the export industries. The led to a trade deficit which helped cause problems with the balance of payments (the difference between the goods a country imports and the goods in exports. What problems might this form of economics cause?

Nicky and Neddy In 1961, worries about the economy overheating forced the government to introduce ‘pay-pause’ to hold down wage inflation, and ask for a loan from the IMF. Europe was leaving Britain behind and trade with the commonwealth was not enough to keep up. To address the economic issues, Selwyn Lloyd, the chancellor, set up the National Economic Development Council (NEDC/Neddy) who dealt with long term economic planning. A National Incomes Commission (Nicky) was established in 1962 and kept an eye on prices.

Add details from the card to your comparison chart! How accurate is Macmillan’s 1957 statement that British people had “never had it so good”? Sort out the statement banks into good and not so good. Put your statements into a hierarchy of importance in answering the question. Think about linking ideas and statements. Add details from the card to your comparison chart!

Positive A new National Health Service was set up in 1948 to combat Beveridge’s five giants of ‘want, disease, ignorance, squalor and idleness’. Also implementation of a new National Insurance scheme and National Assistance ensured commitment to welfare throughout the 1950’s. The Butler Act of 1944 provided more opportunities for working class children to excel in the educational system. 1954 saw the end of food rationing which marked an end to austerity Britain. British people enjoyed a higher standard of living than ever before In the 13 years of conservative rule (1951-1964) the British economy grew on average 3% a year. A boom in post war global economy alongside sustained increase in overseas trade brought high levels of earnings from exports and investments Huge expansion in metal, electronics and engineering industries. Huge expansion in the service industries- 1 in 5 of the population employed in the service sector. Total production increased by 40 per cent, average earnings by 30 per cent, while personal consumption, measured in terms of ownership of cars and televisions, rose from 2, 25 million to 8 million and 1 million to 13 million respectively. From 1951 to 1964 there was uninterrupted full employment Trade marks of the late 1950’s were affluence and consumerism as can be seen from advertisements aimed at the new ‘teenage’ generation and the housewife. Late 1950’s an age of optimism.

Negatives. In 1961 Britain's economic difficulties became apparent and deep-seated: Britain faced increasing competition in world markets, its level of investment and economic growth was low by international standards. This lack of competitiveness, combined with unwillingness to devalue the exchange rate, led to repeated crises always answered by restrictions on home demand. Numbers in the traditional basic occupations like agriculture, fishing, coal mining and shipbuilding, fell during this period. The growth in wages was outstripping the rate of increase in production which equalled inflation. 64,000 dollar question was how to maintain growth and employment whilst keeping prices steady and inflation at bay. The government put in place a stop-go economy using government controls and high taxation to curb excessive inflation. When the economy grew too fast the country imported too much and exported too little. That led to a balance of payments crisis and inflation The roller coaster of stop-go made it difficult for British businesses. It discouraged long term planning and investment and caused trade unions to demand wage increases. Unions such as coal miners struggling to maintain post war pre-eminence and were demanding wage increases. “it is like bicycling along a tightrope” Export industry damaged by international competition. Britain’s economic growth rates were lower than rival countries.

What do you know now? Finish the sentence: ‘In 1957…’ You cannot repeat something that somebody has already said!