Q&A · 2:29:24-2:30:38

A major gold discovery could buy postwar Britain recovery time

A large domestic gold mine would provide a temporary financial buffer for rebuilding industry and absorbing the postwar change in American support.

Question

How would a major domestic gold discovery change Britain's recovery after the Second World War?

Short answer

It could provide a financial buffer for industrial reconstruction without turning Britain into a resource-dependent economy.

Notes

The hypothetical mine provides time rather than a replacement for industry. Extra income could cushion Britain's abrupt postwar financial adjustment and help fund reconstruction of the country and its industrial plant. Britain was too industrialised and labour-intensive to become a simple resource-dependent economy like the examples raised in the discussion. The mine's importance would lie in bridging the first recovery years while productive capacity was rebuilt.