england after world war 2?

Question

for my sons home work he needs to find out how england recovered after world war two

Answer 1

I did not, the war stripped the British Isles of its kindom. The trade lost to U boats during the first World War was total lost after the second U boat attacks, virtually the whole of Englands Maritime fleet sunk, with Liberty ships replacing well built shipping.

The cost of food, munitions and military equipment from America when we stood alone during the first three years of war, plus the cost of rebuilding a country which had a severe housing shortage, was negoiated by Clement Attlee.

The war set in motion profound social changes within Britain, and led to a popular desire for social reform. This mood was epitomised in the Beveridge Report. The report assumed that the maintenance of full employment would be the aim of postwar governments, and that this would provide the basis for the welfare state. All major parties were committed to this aim, but perhaps Attlee and Labour were seen by the electorate as the best candidates to follow through with their program.

Nevertheless, the most significant problem remained the economy; the war effort had left Britain practically bankrupt. During the period of transition to a peacetime economy, the maintaining of strategic military commitments created an imbalance of trade, and the dollar gap. This was mitigated by an American loan negotiated by John Maynard Keynes and the (reluctant) devaluation of the pound in 1949 by Stafford Cripps. With hindsight, the economic recovery was relatively rapid, yet rationing and coal shortages would continue in the postwar years.

During World War II, Keynes argued in How to Pay for the War that the war effort should be largely financed by higher taxation, rather than deficit spending, in order to avoid inflation. As Allied victory began to look certain, Keynes was heavily involved, as leader of the British delegation and chairman of the World Bank commission, in the negotiations that established the Bretton Woods system.

On 31 December 2006, the UK made a payment of about $83m (£45.5m) to the US and so discharged the last of its loans from World War II from its transatlantic ally.

It is hard from a modern viewpoint to appreciate the astronomical costs and economic damage caused by this conflict. In 1945, Britain badly needed money to pay for reconstruction and also to import food for a nation worn down after years of rationing.

In a nutshell, everything we got from America in World War II was free, (says economic historian Professor Mark Harrison, of Warwick University). The loan was really to help Britain through the consequences of post-war adjustment, rather than the war itself. This position was different from World War I, where money was lent for the war effort itself."

Britain had spent a great deal of money at the beginning of the war, under the US cash-and-carry scheme, which saw straight payments for materiel. There was also trading of territory for equipment on terms that have attracted much criticism in the years since. By 1941, Britain was in a parlous financial state and Lend-Lease was eventually introduced.

The post-war loan was part-driven by the Americans' termination of the scheme. Under the programme, the US had effectively donated equipment for the war effort, but anything left over in Britain at the end of hostilities and still needed would have to be paid for.

But the price would please a bargain hunter - the US only wanted one-tenth of the production cost of the equipment and would lend the money to pay for it.

As a result, the UK took a loan for $586m (about £145m at 1945 exchange rates), and a further $3,750m line of credit (about £930m at 1945 exchange rates). The loan was to be paid off in 50 annual repayments starting in 1950, although there were six years when payment was deferred because of economic or political crises.

It's easy to cough and splutter at the thought of our closest ally suddenly demanding payment for equipment rather than sparing a billion or two as a gift. But the terms of the loan were extremely generous, with a fixed interest rate of 2% making it considerably less terrifying than a typical mortgage.

And while the UK dutifully pays off its World War II debts, those from World War I remain resolutely unpaid. And are by no means trifling. In 1934, Britain owed the US $4.4bn of World War I debt (about £866m at 1934 exchange rates). Adjusted by the Retail Price Index, a typical measure of inflation, £866m would equate to £40bn now. During the crisis years of the 1930s, only one nation continued to pay in full - Finland.

Answer 2

After World War 2 things continued to be very bad. Many things were still in short supply and rationed. In fact, bread rationing only started after the war was over. I was born in the middle of the war and must have been 7 or 8 before I saw a banana - what is that thing, I remember asking the friend who showed me. There was also a terrible housing shortage due to the amount of stock that had been destroyed by bombing. It was usual for newly married couples to have to 'live in' with parents for quite some while. In fact, the main political argument always was which party would build enough houses. It took over 10 years from the end of the war for the supply to catch up with demand. Some things did improve, not the least the introduction of the 'Welfare State' in the late 1940s, and in particular the National Health Service. Our industrial base had been destroyed and really we didn't catch up and become truly prosperous again until the new service industries such as finance became important in the 1980s and 90s

Answer 3

It was long, slow progress because the country's finances were in a very bad state after the war. There were large areas in the cities which had been bombed, so a great deal of money was needed to clear and rebuild The shortage of housing was acute so prefabs were built. People also lived in the old Nissen huts.
Food, clothing and coal were all rationed, which made the winter of 1947 even worse than it might have been.

One thing shone out though. The British were much more stoical in those days, but still had a great sense of humour despite their problems. We cannot imagine that today. How would modern children cope with a raition of only 1/4lb of sweets per month?

Answer 4

Nobody helped us, we just got on with it. Home life was tough and a bit deprived because all the best quality stuff we could make was sent for export, to earn money to pay off the war debt.

I was only 5 when the war ended. For the next 5 years, a maiden aunt who was a private nurse in New York, and quite well off, kept sending parcels with clothes for me and my sister. This saved us money, which we could use for other living expenses.

Your son should try to find out more about the great 1951 "Festival of Britain" which I am just able to remember made us feel that we had come out of the post-war depression period and started to achieve worthwhile things. Before that, Princess Elizabeth's wedding in 1947, and London hosting the Olympic Games in 1948, were supposed to lift people's spirits too, but they really didn't because too much else was gloomy.

Answer 5

Rationing did not end until 1950s. This also became the big event that led into women working and the start of immigration in the late 50s early 60s to make sure we had enough people to complement the workforce.

Hope that helps

Answer 6

I would look at Clement Attlee's career as when he became prime-minster, he nationalised basic industries (coal Iron etc, extended social insurance, and established the National Health Service (Aneurin Bevan's great brain child).

He also made a big political error in brokering a massive loan from the U.S. on their terms. This loan we only paid of 2 years ago and is a major factor in our close relationship.

Answer 7

If I am not wrong, the UK's economy was really affected by the war. If not for the inputs from their colonies, they would find it more difficult to recover.

Answer 8

I remember, 'cos I'm old! recovery took a long time, and didn't really get going till the mid fifties, Rationing didn't end until 1957,

Answer 9

They exploited Scotland

Answer 10

books