British economy 1886-1914

Question 1

Great Depression and it’s aftermath

Answer 1

-arguments on whether or not Britain was really suffering from a depression
-historian Saul believes there was a depression
-Britain for years dominated the export market. However there was a fall in demand for British goods as European and American markets were in the lead.
-in 1886 unemployment reached a peak of 10%
- Salisbury’s government introduced a Royal commission which looked into the depression they stated that commodities supply was highest than demand and that agricultural prices where falling. Encouraging sings for the future
-late 1890s saw a return to economic prosperity
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Question 2

Problems in the industry

Answer 2

• between 1886 and 1914 britains traditional industries were expanding slowly.
• Britain was using old machinery
• considered slow to respond to foreign competition
• many manufacturers companies were family owned so nepotism
• Britain was a decade behind Germany in established technology colleges
• historian Theo barker believes that old staple industries were willing to introduce changes
• demand for steel at home fell of as the railway boom of the mid nineteenth century came to an end

Question 3

Problems in agriculture

Answer 3

• by 1886 Britains economy was already affected by cheap imports from the USA.
• canned meat in the 1880s was popular and was from Argentina and Uruguay which affected farms sourcing meat.
• by 1889 40% of meat consumed in Britain came from abroad.
• farmers went bankrupt and moved to the country sides.
• farmers in Scotland were less badly affected as they were concentrating on mixed farming.
• Market farming came with success growth of flowers and fruits and vegetables.

Question 4

Stapes and new industries

Answer 4

• Britain was developing in a new technical innovation eg. Chocolate, tobacco, soap and beer.(was there really a depression)
  -imports to Britain allowed better standards of living.
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Question 5

foreign competition

Answer 5

• Britain was dependant on its trade to maintain position of economic supremacy in world.
  -Britain was no longer the only industrial economy.
• the 1886 Royal commission of industry and trade report noted that Britains manufacturing supremacy was being challenged by ‘foreigners’.
• one factor on why USA and Germany were leading in technological schools.
  Railways in the USA carried raw materials to factories and finished products to towns for home consumption and then sea ports for exports.

Question 6

debates over protectionism, tariff reform and free trade.

Answer 6

• since the 1860s Britain was a free trade nation operating under the policy of lasses faire.
• free trading policy was working well as there was no competition.
• other nations were not following free trade
• Germany introduced trade tariffs in 1879 and USA followed in 1890 this damaged British exports and industrial production.
• although the British economy was being affected they still stuck with laissez faire.
• Fair trade league formed in 1881 argued that Britains trade policy must change.