Britain- Recession

Question 1

Recession 1920-21

Answer 1

• unemployment levels increased to 12% between 1920-21
• by 1921, 2 million were unemployed. Industrial areas like South Wales became depressed
• cost of living had increased by 25% between 1918 and 1920

Question 2

Factors causing the recession

Answer 2

Debt- war expense meant Brit had to borrow 850 mill after it had spend gold reserves

Deflation- gov cut 75% of spending between 1918-20 in response Bank of England increased interest rates to 7% and debt rises to 160% by 1929

Loss of ex- Brit ind lose ex mark due to 1st war and foreign companies take advantage

Indust. Rel- prevent gen strike. DLG brought of Brit work with increase pay+ and less hours

Underinvest- comp force look overseas for goods I.e Brit began import American steel so Brit only produce 83000 tonnes of steel

Question 3

Attempts to solve the recession 1921-29

Answer 3

• both conserv+ lab gov attempt improve econ
• DLG argued econ improve on its own
• many mid-class core wanted to see tax cuts and less spending