Causes Of The Depression

Question 1

Causes of the depression:

Answer 1

• Decline in traditional industries
• Wall street crash
• Industrial Disputes damaging the industry (General strike)
• Lack of investment into modern technology

Question 2

Wall Street crash facts:

Answer 2

• 1929
• America forced to recall all their loans
• Led to a slump in world trade which affected demand for goods in England and Whales
• Industries closing and large unemployment

Question 3

The Traditional industries were:

Answer 3

• Cotton
• Shipyards
• Iron and steel
• Coal

Question 4

Cotton:

Answer 4

Lancashire and North-West of England were big cotton industries

• 1909-11: Great Britain had a 65% share of the world cotton market
• 1938: Share reduced to 28%
• In turn, employment reduced from 621,500 to 393,000 in 1938

Question 5

Shipyards:

Answer 5

• Too many shipyard competing for limited demand
• Shipyards of Merseyside in North-East of England and Clydeside in Scotland laid off thousands of workers
• Protests and marches ignored

Question 6

Coal industry:

Answer 6

• WW1 began in 1914 but by the end of 1915 there was a huge drop in the amount of coal being mined in Britain
• Coal production decreased as a huge number of miners volunteered to fight in the war
• Despite this, there was still a huge demand for coal during the war as it was essential for the war effort.
• Due to the huge decrease in production the government decided to take control of all the mines for the duration of the war instead of mine owners
• NATIONALISATION
• Miners were exempt from joining the army

Question 7

Long term causes of the Great Depression:

Answer 7

Old industries were insufficient and couldn’t compete against modern industries of Poland and USA which produced the same resources but for cheaper

• Lack of demand for goods from abroad
• Oil replaces coal as main fuel for ships
• Industrial disputes damages industry (Generla strike)
• USA recalled their loans

Question 8

Whales:

Answer 8

Before depression:

• 54% of the male population employed or dependant on industry
• 47% worked in coal mining
• 14% in iron and steel
• 17% in transport
• Welsh workforce centered on heavy industry
• When it collapsed it led to huge unemployment in Whales