The End of Austerity

End of Austerity: Overview

Austerity, characterised by rationing and economic hardship, began to phase out in Britain post 1951.
This period was followed by a prolonged economic boom with increased prosperity, tagged as the end of austerity.

Prime Minister Harold Macmillan and the Conservative Government

Harold Macmillan, the then Prime Minister under the Conservative government, famously asserted in 1957 that “most of our people have never had it so good”.
The government maintained full employment, with around 98% of the population in work.
Wage rates were increasing faster than prices for the first time in decades, allowing people to have a higher disposable income.

Economic Growth and Consumption

There was steady economic growth and an increase in wages allowing people to own items previously considered luxuries like washing machines, refrigerators and television sets.
Increased wages also meant that people had more money to spend on leisure activities, resulting in a ‘leisure boom’.
Car ownership surged with one car for every five people by 1961, a drastic increase from one in 20 in 1951.

Declining Importance of Rationing and Austerity

Rationing on almost all products ended by 1954, symbolising the end of austerity and ushering in a new era of consumption and affluence.
Unprecedented housing boom took place, with millions of new homes being built throughout the decade.

The ‘Never Had It So Good’ Society

The phrase “never had it so good” became emblematic of the end of austerity era; representing increased consumption, higher living standards and a sense of optimism pervading the society.
Growth of the mass media, particularly television, played a significant role in shaping public perception and value system.
The rise of the ‘teenager’ as a distinct demographic group with its own lifestyle and fashion also marked this era.

Impact on Social Class and Mobility

The end of austerity era led to some changes in social mobility and class structure.
More opportunities for higher education led to the expansion of a more affluent middle class.
However, wealth and opportunities were not uniformly distributed across regions and classes. The North-South divide in wealth persisted, with South being more prosperous than de-industrialising North.

End of Austerity: Criticisms and Consequences

Despite the general feeling of prosperity, critiques argue that this period also saw missed opportunities and a lack of adequate government planning.
The government faced criticisms for failing to invest enough in infrastructure and industry, which would hurt Britain’s competitiveness in the long run.
Historians continue to debate the legacy and impact of this era on British society and its economy today.