ADV INFO Economic Developments 1886-1914 Flashcards
When is the start of the great depression normally placed
1873
when was the great depression still in effect
1886
what was set up to investigate the depression
a royal commission
what had Britain lost in the period
it world-leading economic position
What were many British firms experience
decline profits and they, therefore, invented less
what was British industry made up of
smaller family firms rather than the much larger firms in the USA and Germany, so their capacity to invest was hit harder by the drop in profits.
what did the lack of investment lead to
a degree of stagnation in British Industry
what happened to the export values of the early 1870s
they were not exceeded until the late 1890s
what happened to cotton goods exports
the number in 1872 was not equalled until 1904, the worst year for the export of cotton goods being 1895
what was imposed on British goods from the 1860s
tariffs,
what did the tariffs placed on British goods do
in the short term, they made British exports more expensive than the goods produced within the importing country, which reduced demand for British goods; the tariffs would also allow the native industry to grow and invest, enabling them to compete with British produced goods in the long term
what was productivity like in Britain
it was lower than in the USA and Germany
what contributed to Britain’s poor productivity
the poverty and poor health of the British working class; limited levels of investment in new technologies; British capital being invested abroad rather than at home; costs of transportation within Britain; and comparatively poor levels of scientific and technological education
what were the statistics of productivity in 1913
Germany produced six times more science graduates than Britain
What had happened to the American and German economies at the time
they were growing at twice the rate of the British economy
what happened to the price of textiles during the period
they dropped by 30%
what would also suggest that the British economy was depressed
imports were not increasing at the same rate during the Great Depression as they had done previously
what had Britain done that disadvantaged domestic goods
they did not impose tariffs, so the imported goods were often cheap, most notably food products.
why was the demand not strong
due to unemployment and stagnant wages levels
what was starting to emerge during the Great Depression
a growing deficit in the visible balance of trade
what did agriculture struggle against
foreign imports
What areas continued to grow slowly
overall levels of production and the volume of exports continued to rise in most industries through the period of the Great Depression
what position was Britain still in 1896
it was still one of the world’s leading economies.
what had the city of London become
a world leader in financial services
where did British entrepreneurial efforts shift
from traditional industry, which was beset with falling prices and competition, to the service sector and commerce, areas in which Britain excelled.
what did the level of invisible exports do
more than offset the deficit in the visible balance of trade and Britain’s overall balance of trade remained positive
what is a balance of trade
the value of exports minus the value of imports. The visible balance of trade is based on the value of physical goods being exported and imported. The overall balance of trade is also affected by ‘invisible’ imports and exports: services and non-physical goods, such as city financial services for foreign firms
how did the working classes benefit from the depression
falling food prices increased ‘real wages’ and improved the standard of living of many in the working classes
which historians dismissed the whole idea of the Great Depression
S.B. Saul
what happened to GDP suggests that the British economy was still functioning effectively
between 1900 and 1913 GDP increased on average by 1.7% a year.
what happened to output from the staple industries
they continued to increase output
what happened to coal production during the period
increased from 223 million tons in 1900 to 287 million tons in 1913
what happened to British dominance in shipbuilding
60% of the world’s merchant ships were being built in British shipyards
What happened to British foreign investment
went from £50 million in 1901 to £200 million in 1913
what was unclear about Britain’s economic position
it was unclear whether Britain would be able to maintain its strong position in world markets in the staple industries
which books emphasised the point that Britain was no longer the workshop of the world
Made in Germany and American Invaders
what did people turn to explain issues
the writings of social-Darwinists such as Galton
what did Galton speak fo
physical deterioration
what was physical deterioration
the idea that there was a genetic decline in the British race
what is eugenics
the idea that society could be improved through promoting selective breeding and even sterilisation of some members of society
what exposed the terrible poverty that existed in Britain
the recruitment drive for the Boer War and reports by Seebohm Rowntree and William Booth
what did the work of Rowntree and Booth question
whether the British worker could, in the long term, compete with the seemingly healthier and better educated German and American workers
what happened to Britain’s share of world manufacturing
it continued to fall even after the Great Depression ended
how could it be suggested that the decline was comparatively not real
the British economy continued to grow and so did British production
what per cent of the world’s goods were produced in Britain in 1870
33%
what per cent of the world’s goods were produced in Britain in 1913
14%
what per cent of the world’s goods were produced in Germany and the USA in 1913
35 % - USA
16% - Germany
why was it expected that Britain would have a slower growth rate than the newly emerging economies
it had started from a higher base
what had happened to British industrialists
they were less dynamic and less flexible
why were cost-saving methods like the Ford Conveyor belt not adopted in Britain
they had more skilled craftsmen than the USA
how was Germany more advanced
they were ahead in terms of technical and managerial education
what was the ‘early start’ thesis
the country that industrialises first faces a long term disadvantage, as techniques and processes become outdated and the initial advantage is lost. Late starters can adopt recent techniques and equipment and learn from the experience of the initiator.
what is an example of the early start thesis
Introducing electricity to the British cotton industry, for example, would have required redesigning the weaving sheds, while in the USA the whole production process could be put into place in one go. In the steel industry in the 1860s, Britain, the USA and Germany were all using the same British equipment. The other two updated their technology, but Britain stuck with the older, less efficient methods.
How can declining demand abroad explain economic problems in Britain
other countries developed their own raw materials and manufacturing, so Britain was no longer the workshop of the world. Germany, the USA and other countries were now exploiting their own natural resources, which reduced British exports
