1939 - British Economic Control And Fuel Black Market Transactions In 1955

1939-1955, to insure the victory of the World War II and the rebuilding after the war, the British Government has implemented economic regulation and resource rationing; the trade of the commodities which have been regimented like the fuel and food in black market were rampant. During this period, the prosperity of the black market and the economic regulation of the government presented relatedness. Though the black market could meet the demands for part of the people, it was a threat for the economic during the war time, the national defense interest, the rebuilding and economic rehabilitation after the war.There is a brief introduction of the economic situation, fuel situation and the trade of the black market from the beginning of the 20th century to the time before the World War II. In the beginning of the 20th century, the economy of the Great Britain was still taking an extremely important position in the world, which was sustained by the oversea colonies and the traditional industry. However, the economy status of the Great Britain began to decline after the World War I because of the consumption of the war and the economy depression after the war. The oversea colonies were breaking from the UK and the disadvantage of the old production and managing mode had emerged after the war. As a part of the underground economy, the black market was a long standing role of the society and affecting the economic development.Then, a statement of the economic regulation and resource rationing in UK during the WWII and the rampant black market which was representative by the fuel and other regulated commodity. The UK has implemented the planned economic system, controlled by the central government, instead of the free market economy during the WWII. To ensure the materials supply for the war and the victory of the war, rationing, deflation policy and the fair distribution were in the centrality during the WWII and rebuilding period. At the same time, the black market became popular. The commodities not only the gas and other regulated goods, but also the ramification, such as the fuel coupon. Factors like the participants and the areas of the black market transaction influenced the trade and the price.That is a general situation of the continuing deflation policy a d the fuel black market from the end of the WWII to the failure of the Labour Party in the elemention of 1955. The Labour Party remained in power after WWII and carried on implementing the economic regulation. Kept the deflation policy or not had always been the focus of the parties combative field. At the same time, the development of the fuel black market was affecting the regular economy in UK. The disadvantages of the deflation policy were emerged through the unfairness and the corruption of the black market.Finally, the paper has discussed the relevance between the black market transaction and the government policy, also the impact to the economy and society in UK from the black market transaction in this period of time. The appearance of the black market was an unavoidable result of the deflation policy, and it also shows the limitation of the deflation policy. The black market transaction was dominated by the supply-demand relation and the special control program situation. It exerts negative impact to the state power, fiscal levy and social stability, even it has satisfied the demand of some people for living in some degree.