Causes of the Depression Flashcards
Name the principal cause of international depression at the beginning of the 1930s.
The Wall Street Crash (29th October, 1929)
Why were the consequences of the Wall Street Crash so severe for Britain?
Overdependence on the USA meant that what should have been purely an American crisis reverberated across the world, in many places worse than in the States (“when America sneezes, the world catches a cold.”)
Was the Wall Street Crash the greatest cause of The Great Depression?
No, it was simply the final burden in an already somewhat dysfunctional economy.
Which areas of Britain hosted growing prosperity during the 1920s?
Southern England and The Midlands.
What was the population trend of rural Britain during the late 1920s?
A decline, as manpower was replaced by technology.
What were Britain’s greatest market rivals?
Japan, the USA, and even Germany.
Where was much of Britain’s early 20th century industry developed?
Around Northern coalfields, because many old industries remained dependent on steam power.
What were the old industries?
- Coal.
- Iron and steel.
- Textiles.
- Shipbuilding.
What was the main problem affecting the old industries?
That they depended on exports.
What was the comparative scale of foreign manufacturing?
Much larger than in Britain, meaning that they could produce goods at a much lower cost.
What were the principal causes for the decline of British industry?
- Competition from abroad.
- Lack of new markets.
- Obsolete methods.
Why was it becoming harder to find new markets?
Because of higher prices, largely due to tariffs, which were not reciprocated in the UK’s policy of free trade under a Conservative government.
How many tonnes of shipping were built in Britain in 1930? How does this compare to 1933?
1,400,000 (1.4 million), compared to just 133,000 in 1933,
How did Britain react to America’s pioneering of mass production?
Slowly, while switching resources at a bad rate from old industries to new emerging ones such as chemicals, rayon, and automobiles.
How did the price of coal from the USA compare with that of British coal in the mid 1920s?
While coal cost 65 pence per tonne in the USA, it was £1.56 in the UK (over double the price).