14.3 Effect on industry, agriculture and trade

Question 1

What approach did the National Government take to noncompetitive shipyards, mills and mines and what impact did this have on unemployment?

Answer 1

The government closed noncompetitive shipyards, mills and mines, which made survivors more competitive and increase investment in them though there was a drastic increase in unemployment 2.7m by 1931

Question 2

Which section of the economy was least affected by the economy by the depression?

Answer 2

New industries were least affected by the depression

Staples had a slow recovery with coal and steel back to 1928 output by 1938

Question 3

What National Government policy gave a significant boost to the economy?

Answer 3

Rearmament

Question 4

What happened to global trade in the 1930’s?

Answer 4

Global trade fell by 1/3 from 1929-33

GB protection policies only had a small impact but world trade began to improve by 1933

Question 5

How did the government support UK agriculture after food prices fell and how effective was this? (4)

Answer 5

Wheat prices fell by 50%

• Protectionism
• Government helped with land drainage
• Mechanisation
• Better credit facilities
• 1936 Agricultural workers included in National Insurance but only 1/3 of urban workers wages