Affluence

Associated with the economic situation of the 1950s and 1960s in Britain. Rationing had been abandoned and many people were able to spend their money on consumer goods and even luxury items. The 1950s Wirtschaftswunder would be the German equivalent.

Origin

Affluence derives from Latin affluentia meaning “a flowing to” (Online Etymology Dictionary). In the economic context, the term was first coined by John Kenneth Galbraith who aimed to illustrate “huge changes that continuous economic growth had brought about in the spending habits of ordinary American citizens” (Hollow 1). Nowadays however, the term is used in a broader way, describing both, enormous material changes as well as major socio-cultural transformations that have occurred in many western nations during the post-war era. In Great Britain, affluence took place in the 1950s and 1960s and had a big impact on society and its culture.

Cause

Affluence is a term that is often mentioned together with welfare and consensus. Latter means the accordance of Labour Party and the Conservatives on the political goals after the end of World War II. Both parties agreed to advocate a welfare state, the nationalization of particular industries, and the governmental control of economic demand according to Keynesian techniques. “This consensus coincided with, and contributed to, a period of consumer affluence” (Heyck 217). By introducing the welfare state, the government aimed to establish full employment and a complex system of social services. As the country was dept-ridden, the British government took out a $3.2 billion loan from America in the context of the Marshall Plan aid. This caused the beginning of reconstruction as well as the introduction of a welfare legislation in means of providing “a universal system of social services for all British citizens” including “(1) comprehensive social insurance; (2) a national health service; (3) state-supported housing construction; and (4) public education” (ibid. 220).

Economy

Due to the Marshall Plan aid, Britain no longer had to stick to extreme austerity and rationing. With export campaigns the government sought to boost the economy. The economic growth was eventually not carried out by the old industries such as “coal, iron, textiles, and shipbuilding” (ibid. 225), but by “new ones – automotive, electronics, aircraft, and industrial chemicals” (ibid.). As the economic conditions continued to turn for the better, in 1951, British people celebrated the end of austerity with the “Festival of Britain”, an exhibition that highlighted British products. Also, the coronation of Elizabeth II served as the marking “of a new, more affluent time”, also known as the “New Elizabethan Age” (ibid. 224). Positive results of the post-war affluence were “full employment, fairly strong economic growth, and a consumer boom” (ibid.). Private households consumed products such as telephones, televisions, vacuum cleaners, washing machines and refrigerators. However, in the 1970s it became clear, that the “British economic growth was good, but not good enough” (ibid. 225) compared to the economic growth in the United States, Japan and Western Europe. Britain struggled with a “short-term problem of chronic balance of payments crises and the long-term problem of inadequate productivity” (ibid.). What followed was a cycle of policies called “stop-go”, characterized by the ease of import restrictions, cheap money, and instalment buying as well as opposed measures such as “import restrictions, tight money, and controls on instalment buying”(ibid. 226). In addition to that, foreign markets were not captured sufficiently enough and also the domestic market caused that Britain could not pay its way. Britain fell into a state also known as “British disease” (ibid. 227).

Extent of the Affluent Society

Britons in the 1950s and 1960s experienced a better standard of living and a new lifestyle. The fact that many “people received from social services more than they paid in through taxes” (transfer payments) as well as that the “average income went up faster than prices” (ibid. 228) enabled them to afford products like homes, cars, televisions, and other household goods. People experienced a lifestyle that was connected to the home. Thus, they did activities such as watching television, gardening and projects on the house or car. Although many people were able to climb up the social ladder, class distinctions still remained. People of the working-class were forced to stick to their jobs. Many workers joined trade unions in order to stand for more job security, rising promotions and salary scales. Plenty of strikes by trade unions and worse industrial conditions and conflicts caused the end of the age of consensus.

Sources

“Affluence”. Online Etymology Dictionary. Web. 13 June 2015. <http://www.etymonline.com/index.php?term=affluence>.

Heyck, Thomas W: The Peoples of the British Isles. A New History: From 1870 to the Present. 3rd ed. Chicago: Lyceum Books, 2002. Print.

Hollow, Matthew. “The age of affluence revisited: Council estates and consumer society in Britain, 1950-1970.” Journal of Consumer Culture 0.0 (2014): 1-18. Print.