The affluent society

There then followed a period of economic growth and prosperity under three consecutive Conservative Governments. During the 1950s, there was a period of massive growth in the private sector, above all in the newer industries, particularly car and aircraft production, and wages increased by 40% in real terms. Most families could now afford a car, fridge and a television set, and people began to talk of an affluent society. By the start of the 1960s, however, production was beginning to slow, while wages and prices continued to rise. The Government’s policy of freezing wages as a cure enabled Labour to win the 1964 elections.

Abroad, the British Empire had been almost completely dismantled, generally very peacefully, with most of the newly independent nations joining the Commonwealth. The decline of Britain as a world power was highlighted, however, when Britain was forced to withdraw its troops in the face of world opposition after occupying the Suez Canal (in retaliation for its nationalization by the Egyptian leader Colonel Nasser) and accept the conditions laid down by Egypt.

Exercise 16. Mark the following statements True or False and correct any false statements in order to obtain a summary of the passage.

1. Under the three Conservative governments the economy grew considerably.

2. This growth was caused primarily by the public sector.

3. This period became known as the “affluent society” because most households were able to buy a car, a TV and a fridge.

4. The Labour Party won the 1964 election because wages continued to rise.

5. Most of the former colonies had to use force to gain their independence.

6. The Suez crisis revealed Britain's decline as a world power.