Volume XII – Number 2
Edward R. Stollof
Abstract: This piece examines the economy of the United Kingdom post-WWII. While the majority of Europe was left both economically and politically devastated by the war, Britain held an illusory sense of national affluence. Though aspects of its economy, such as its merchant fleet, active ports and male work force were damaged, general consensus was that Britain’s economy remained relatively strong. The article examines the volatile aspects of the British economy, such as its trade deficit, ultimately proving its venerability to outside influences and therefore explaining why economic expansion stopped. Britain’s national income falls short in comparison to expenditures, thus compelling the financial cost of Britain’s national commitments will eventually halt its economic expansion. Other factors that have been attributed to the problem, such as investment in sterling and stockpiling for the Korean War, are examined as well. The article uses this evidence of economic stagnation to ask whether there is a need for Britain to become involved in European integration and examine the potential economic benefits of doing so.
Key Words: Britain, Economy, WWII, Growth, Trade, Deficit, Payments, Income, GDP
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