Britains Economy during the Golden Age - Case Study Example

Extent of Britain’s Economic Golden Age The period of post-economic boom, categorically referred to as the long boom, the acme of capitalism, the post World War II economic explosion, and the period of economic prosperity was some of the names given to what ultimately was the golden age. Following the end of World War II in 1945, western countries experienced a high wave of economic growth. Britain was in that pact that enjoyed the unprecedented times of unusually high and sustained growth together with bursting employment. Britain was flourishing in raising real income rate, a raising high consumption of goods and services. This paper will give an in depth analysis of the extent to which Britain’s economy was impacted during the golden age. As felt far reach to other countries in Western Europe, this economic boom and financial stability in Great Britain was alluded to the Keynesian economics, the libertarian explanation, immediate post-war policy, institution factors, the U.S.A council of economic factors and the military spending (Toniolo, 1998:258). More notably to the maximizing this golden era in Britain, was the setting up of international institution. These where designed to ensure stability in these G7 western countries. The institutions were to maintain a stable and progressive economic arena where Britain was noted as having a significant impact. They established what was known as the Bretton Woods Systems, which was made possible by enacting of free trade, the Marshall Plan incorporation and the use of Keynesian economics. With these in practice in Britain, the economic improvements were well feasible in the eyes of the citizens (Clarke, 2004:31). The extent of benefit According to Floud and Johnson (2004:208), the extent to which Great Britain enjoyed the economic golden age remains as fascinating as ever. This period lasted for about 19 years (1950-1969). This is the period which is described by many theorists as the happy times of Britons livelihood. The government of Britain was relishing this good times (Epstein, Howlett, and Schulze, 2007:111). At this period, officials were quoted saying that the country was experiencing tremendous good times in all the chambers of the economy. Industrialization was getting well underway; farms were reaping from on-time sells of their production while the livelihood of the people was soaring in bliss. The period of 1950s felt like a no comparison time in the history of the people of England (Timmins, 2001:73). One of the notable benefits of this time in Great Britain was the significant drop in the unemployment rate in the entire country. It was significantly lower than before this golden period or after it. Available from: http://globalhistoryatlse.files.wordpress.com/2010/08/average-per-annum-growth-rates-of-gdp-per-capita-in-the-presently-high-income-industrialized-countries-1870-1989.jpg [Accessed 1 May 2012] As from the table above, the era of this economic boom was well characterized by the lowest unemployment rate the country had ever witnessed. This trademark was characterized by the steadiest economic growth and stability in prices. By this time, Britain was among the countries which termed themselves as the G7. These countries rallied upon each other but also competitively were out doing each other in their developments. The free market economist (neoclassical economists and the Austrian school) showed that the melt-down of unemployment rate as a result of post war boom, was triggered by the introduction of the free markets and deregulation of the market policies (Crafts, 2003). Infrastructural developments were not left lagging. Britain funded its large infrastructural projects during this period. Through what the G7 countries called the Marshall Plan (the rebuilding of Europe), in which Great Britain, the key player, rebuilding of its suburbs and infrastructure was at the soul of the government. This was made possible by the co-coordinative measures that the government had put into practice. Due to this innovative process, the prospering Britain economy was now being built under mainly three main pillars: the trade union reform, the macro-economic revolution and the globalization and the technological breakthrough (Johnson, et al., 2007:101). The trade union reform was initially put into practice to enhance welfare in the labor field. It was farther coupled by the deregulation and privatization of the Thatcher era. As it is known, Thatcherism was a policy that its effects led to a well established economy. By having this theory in practice, it led to the creation of a truly competitive market economy for the first time. Britain had set itself in another level of accomplishment at a time when other nations had chosen an entirely different line of operation. As predicted by the pioneers, Britain crafted itself a surplus advantage over its European neighbors (Floud and Johnson, 2004:209). This period was the real time for establishing foundation in their economy. Having been involved in the First and Second World War, the Great Britain nation was determined not to drag its foot once more into the pits of recession. The economy was growing, and as a result the nation once again was on the path of being an economic power house Western Europe. Golden period brought another milestone to the British people in terms of enhanced transport system. At this time, the most commonly used transport means was the canal system. Even though industrialization had played a bigger toll in bringing to the transport system more decent roads, canal system was undisputable. The transport system was triggered by the industrial revolution, which demanded an economic and reliable transport for the goods and commodities in large quantities. The 19th century saw some major new changes in canal transport. Major new canals like the Caledonian and the Manchester ship canal were all developed into full exploitation. At this time, canal transport system was the most popular way of transport. Most of the canals were owned and managed by the railway company. The railway companies were, having premeditated the down fall of these canals, hoped to bring and build more on the railway transportation (Dormois, 2004:12). The golden age saw the up soaring in production in the industries and farms. This required a convenient transport system, which could carry bulk goods and canal was not capable. The canals, though considered efficient by the locals, to the economic side it was less supportive. The canals were less successful particularly the narrow locked canals whose boats could only carry a limited weight of thirty tons. This led to their gradual diminish. Since the economy was experiencing its best times in history, people had to move into the more advanced forms of transport. These included road transport and the railway transport. Competition was stiff as the economy was well supportive. The Britons had advanced in their transport sector, especially the coming of the road hauling. With this innovation of more expanded road transport now successfully operating, only the strongest canals survived. Most of the canals had been nationalized and the government was totally under control until the final blow, which was delivered by technological change (Crouzet, 2001:221). This golden period also saw the legalization of the canal system in 1948. Along with the railway, these two forms of transport were under the British Transport Commission. The mode of the transport was seen as key to economic sustainability. Due to this, the commission placed the canals into three categories according to their economic diagnosis waterways to be urbanized, water ways to be retained, and waterways having insufficient commercial prospects to validate their preservation for navigation. This was in pursuit of efficient and reliable transport system because transport of goods needed no delay. In the mid 1950s and 1960s, freight transport declined due to the booming and mass road transport. This healthy competition for better services in transport sector was all transfigured by the economic boom of the golden age (Dormois, 2004:13). The golden age also meant not only a period of economic stability but also a period of peace in both society and politics. This age of great extremes in Great Britain was characterized by a general growth and better living standards all over the country. This age came with it an established affluent society and social class. It influenced greatly the social change, working class affluence and the intellectual perception of class and culture (Soren, 2007:24). The Britons were getting more and more proud of their livelihood. These days, according to majority, were the days of crowning glory. These blissful moments were coupled by the crowning of the young Queen Elizabeth and the successful mission made possible by one their own on top of Mount Everest. So soon, the daily feasible growth of the people’s life style meant them even forget the post war memories and tribulations. Living on a high-class status, they established museums and public exhibition centers. Television was now advanced and documentaries were being viewed through the televisions. At this age, the only detriment was the rationing, which was the only disagreeable post war side effect. Despite all these, the living conditions of the people had greatly improved. Other services like the national health services had guaranteed free medical consultations as well as treatment. This service was to be extended to the greater population. Due to this great golden boom, the provision of such services was an enormous step in the history of the wellbeing of the state. Just like the status, which was acquainted to the Great Britain monarchial organization, the National Health Service had risen to such heights. It was adorable to the eyes of the Britons. In parallel to this was the housing sector. This institution had grown from its challenging years of 1945 to bring out some of the outstanding architectural housing designs for the people. The houses constructed were plenty and a great percentage of the population benefitted from this. On this level of status, with the highly developed technology in place, majority of the Britons were living a lucrative life. There were availability of advanced equipments such as washing machines, televisions, and refrigerators. These services were even available to the have-nots. The only looming setback to this golden age was the detected capitalism and the eminent crime in the society otherwise; life was at its best for the people (Crouzet, 2001:222). The prevalent benefit the British Government enjoyed during this golden age was the stabilization of the economy. Instantaneously after the war, the economy of this great nation was at quagmire. In the war involvement, the country had incurred great losses. Houses were destroyed through bombings, war tank and marine ship had been sunk. This was too costly for the country to start from. Having lost almost close to half of its economy’s percentage to war, the country was again plugged into monetary insufficiency. The only ray of hope was the support that the American government aided to them (Barry, 2006:18). This Lend-Lease Programme provided unmeasured boost to the economic recovery of the British government. Other countries having sensed the good times presented by the golden economic age, reestablishing their economy was the key idea. These countries formed the alliance of the G7 countries, which certain policies like the Marshall plan was implemented. Through this policy, the Britain government benefited from the aid of the Marshall Plan kitty. With already two provided aids at hand, Britain was rapidly on its course of reinstating its economy into the path of improvement. As expected, the nation of Great Britain was on its way up. It immediately started to show signs of recovery and with time, it was at per with the raising economic tendency of the time. It is this economic recovery, which the country had resurrected from, that, saw an overhaul of the ether sectors of the economy like; improved banking system, agricultural exploitation, and industrial innovations. Consequently, the rate of employment steadily dropped. The society and the country, once again was living at its best times of their economy (Barry, 2006:20). In conclusion, the question whether Great Britain was living at its best times of economic surplus at this golden age period is in no doubt. The wave of reviving from post war losses was sweeping the entire Western Europe and Britain was of no exception; it had to benefit. At some point, United Kingdom was seen as having recovered so quickly, way beyond its competitors. This was all accrued despite the nation having lost its colonies and its stand in the international economical comparison (Epstein, Howlett, and Schulze, 2007:112). The country and its people were not disturbed rather they were too busy enjoying what they had amassed. BIBLIOGRAPHY Barry, E., 2006. The European Economy Since 1945: Coordinated Capitalism and Beyond. Princeton: Princeton University Press. 18 Black, L. and Pemberton, H., 2004. An Affluent Society?: Britains Post-War Golden Age Revisited. Farnham: Ashgate Publishing, Ltd. Clarke, P., 2004. Hope and glory. Britain 1900 - 2000. London: Penguin Books Ltd. Crafts, N., 2003. Fifty years Of Economic Growth In Western Europe: No Longer Catching Up But Falling Behind? Available from: http://www-siepr.stanford.edu/papers/pdf/03-21.pdf [Accessed 1 may 2012]. Crouzet, F., 2001. A History of the European Economy, 1000-2000. London: A History of the European Economy, 1000-2000. Dormois, J., 2004. The French Economy in the Twentieth Century. Cambridge: Cambridge University Press. Epstein, P., Howlett, P., and Schulze, M., 2007. 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