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

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  • 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?," The Warwick Economics Research Paper Series (TWERPS) 1370, University of Warwick, Department of Economics.
    • Handle: RePEc:wrk:warwec:1370
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    References listed on IDEAS

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    1. P. W. S. Andrews & Elizabeth Brunner, 1950. "Productivity And The Business Man," Oxford Economic Papers, Oxford University Press, vol. 2(2), pages 197-225.
    2. 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.
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    11. 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.
    12. 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.
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    14. 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.
    15. Nicholas Crafts, 2016. "Reducing High Public Debt Ratios: Lessons from UK Experience," Fiscal Studies, Institute for Fiscal Studies, vol. 37, pages 201-223, June.
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    17. Monica Costa Dias & Robert Joyce & Fabien Postel‐Vinay & Xiaowei Xu, 2020. "The Challenges for Labour Market Policy during the COVID‐19 Pandemic," Fiscal Studies, John Wiley & Sons, vol. 41(2), pages 371-382, June.
    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

    JEL classification:

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

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