The impact of ‘stop-go’ demand management policy on Britain's consumer durables industries, 1952-65

Scott, P. M. ORCID: https://orcid.org/0000-0003-1230-9040 and Walker, J. T. ORCID: https://orcid.org/0000-0002-3477-0236 (2017) The impact of ‘stop-go’ demand management policy on Britain's consumer durables industries, 1952-65. The Economic History Review, 70 (4). pp. 1321-1345. ISSN 0013-0117 doi: 10.1111/ehr.12470

Abstract/Summary

This article examines the impacts of British government ‘stop-go’ policy on domestic sales of consumer durables over the period 1952–65, via hire purchase restrictions and punitive Purchase Tax rates. Our analysis includes a general review of contemporary evidence regarding the impacts of these measures, a more detailed study of the television sector, and time-series econometric analysis for both televisions and a representative high-ticket labour-saving consumer durable: washing machines. We find that the restrictions had devastating impacts on Britain's consumer durables industries, preventing firms from fully exploiting economies of scale, reducing output growth and international competitiveness, and eroding industrial relations. Government officials were aware of these problems, but considered them a price worth paying to facilitate moves towards sterling convertibility and the re-establishment of the City as a leading financial and trading centre.

Item Type	Article
URI	https://reading-clone.eprints-hosting.org/id/eprint/71309
Identification Number/DOI	10.1111/ehr.12470
Refereed	Yes
Divisions	Henley Business School > International Business and Strategy
Publisher	Wiley
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