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What Can We Learn from the UK's Post-1945 Economic Reforms?

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Listed:
  • Crafts, Nicholas

    (CAGE, University of Warwick and University of Sussex)

Abstract

This paper reviews the claim that economic policymakers in the post-Covid UK should learn the lessons of the 1940s. Post-1945 policies relating to delivering full employment, levelling up, upgrading social security, dealing with the public debt legacy, and addressing the productivity puzzle are considered. The paper finds many reasons to criticize 1940s’ policies. Although, superficially, outcomes appear to have been good, a closer look reveals significant failings notably concerning design of the welfare state and supply-side policy for growth. The main lesson from the 1940s is not to repeat the policy errors of those days.

Suggested Citation

  • Crafts, Nicholas, 2021. "What Can We Learn from the UK's Post-1945 Economic Reforms?," CAGE Online Working Paper Series 579, Competitive Advantage in the Global Economy (CAGE).
    • Handle: RePEc:cge:wacage:579
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    File URL: https://warwick.ac.uk/fac/soc/economics/research/centres/cage/manage/publications/wp579.2021.pdf
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    References listed on IDEAS

    as
    1. Roger Clarke & Stephen Davies & Nigel Driffield, 1998. "Monopoly Policy in the UK," Books, Edward Elgar Publishing, number 1254.
    2. P. W. S. Andrews & Elizabeth Brunner, 1950. "Productivity And The Business Man," Oxford Economic Papers, Oxford University Press, vol. 2(2), pages 197-225.
    3. Crafts, Nicholas, 2012. "British relative economic decline revisited: The role of competition," Explorations in Economic History, Elsevier, vol. 49(1), pages 17-29.
    4. S Broadberry & Nicholas Crafts, 1996. "British Economic Policy and Industrial Performance in the Early Post-War Period," CEP Discussion Papers dp0292, Centre for Economic Performance, LSE.
    5. Campos, Nauro F. & Coricelli, Fabrizio & Moretti, Luigi, 2019. "Institutional integration and economic growth in Europe," Journal of Monetary Economics, Elsevier, vol. 103(C), pages 88-104.
    6. Crafts, Nicholas & Toniolo, Gianni, 2008. "European Economic Growth, 1950-2005: An Overview," CEPR Discussion Papers 6863, C.E.P.R. Discussion Papers.
    7. Antonin Bergeaud & Gilbert Cette & Rémy Lecat, 2016. "Productivity Trends in Advanced Countries between 1890 and 2012," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 62(3), pages 420-444, September.
    8. Nicholas Crafts, 2022. "Brexit and control of subsidies," Oxford Review of Economic Policy, Oxford University Press and Oxford Review of Economic Policy Limited, vol. 38(1), pages 154-164.
    9. G. Corti, 1976. "Perspectives On Public Corporations And Public Enterprises In Five Nations," Annals of Public and Cooperative Economics, Wiley Blackwell, vol. 47(1), pages 47-86, January.
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    11. Nicholas Crafts & Terence C. Mills, 2005. "TFP Growth in British and German Manufacturing, 1950-1996," Economic Journal, Royal Economic Society, vol. 115(505), pages 649-670, July.
    12. Nicholas Crafts, 2021. "The Sources Of British Economic Growth Since The Industrial Revolution: Not The Same Old Story," Journal of Economic Surveys, Wiley Blackwell, vol. 35(3), pages 697-709, July.
    13. Nicholas Crafts, 2016. "Reducing High Public Debt Ratios: Lessons from UK Experience," Fiscal Studies, Institute for Fiscal Studies, vol. 37, pages 201-223, June.
    14. Philippe Aghion & Richard Blundell & Rachel Griffith & Peter Howitt & Susanne Prantl, 2004. "Entry and Productivity Growth: Evidence from Microlevel Panel Data," Journal of the European Economic Association, MIT Press, vol. 2(2-3), pages 265-276, 04/05.
    15. S M Ali Abbas & Nazim Belhocine & Asmaa El-Ganainy & Mark Horton, 2011. "Historical Patterns and Dynamics of Public Debt—Evidence From a New Database," IMF Economic Review, Palgrave Macmillan;International Monetary Fund, vol. 59(4), pages 717-742, November.
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    18. Mr. S. M. Ali Abbas & Laura Blattner & Mark De Broeck & Ms. Asmaa A ElGanainy & Malin Hu, 2014. "Sovereign Debt Composition in Advanced Economies: A Historical Perspective," IMF Working Papers 2014/162, International Monetary Fund.
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    More about this item

    Keywords

    economic growth; policy reform; post-war settlement; welfare state. JEL Classification: N14; N34.;
    All these keywords.

    JEL classification:

    • N14 - Economic History - - Macroeconomics and Monetary Economics; Industrial Structure; Growth; Fluctuations - - - Europe: 1913-

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