Britain- The economic crisis and Labour's minority government

Question 1

How much did world trade reduce by from 1929 to 1932? How did this impact the British economy?

Answer 1

1929- $68,640 million
1932- $26,600 million
A reduction of over $40,000 million

This hit Britain’s economy particularly badly due to the large amounts of foreign investment and economy in ‘invisible exports’.

Question 2

What was Snowden’s approach to the 1929-32 economic policy?

Answer 2

• No devaluation of the pound
• Therefore little to no government borrowing
• Minimal tax increases
• However maintained much of the social benefits unlike other countries until 1931

Question 4

What major bank crashed in 1931

Answer 4

Austria’s Credit Anstalt

Question 5

What had happened by August 1931

Answer 5

Attempts to rationalise industry
Fall in industry
Rise in unemployment