Challenges To The Status Quo- Economy Flashcards
Factors causing problems economy 1873-1914
Britains early start
Declining demand aborad
Low wages
Supply side factors
Small family run firms
Britains early start- cause porblems
Other countries could copy and innovaete- eg introduce electricity to british cotton diff as have to redesign weaving machines- but whoel process doen from start abroad
New industries- dyes, chemicals, electricity and motor cars- bettwer established in germany and usa
Copy and update british technology
British good quality focus- rolls royce
British developments chocolate or soap production- didnt contibute significant manufacturing innovvations to benefit the economy
importance of britains early start
Partly important but preventable
Had to invest innovate more
Reluctant and complacency, expansion
Declining demand from abroad- how cause problems
Other countries develop own raw materials and manufacturing- britain no longer THE workshop of the world
Germany usa- exploit natural resources
Free trade (britain_ as other countries increase tarriffs on british goods
Employment didnt fall significantly as fell in exports may suggest
Emigration from britain to us- american dream, little political opposition
Lack modernisation meant industry still reliant on large no worker
Low wages- factors causing problems
Led to supressed demand for manufactured goods- usa wages higher so more demand
British manufacturing- conc high quality goods aimed at aristocracy rather than mass market- rolls royce too expensive
Britain fell behind when it came to construction industry and building new factories- usa and egrmany growing
Importance of low wages in causing problems
Avoided
Small firms- low pay as maximiser profits
Supply side factors in causing problems
Lack of modernisation- lack kof efficiency
British abundance in labour and fuel
Usa-1910 textiles and tinplate produced same amount as britain with 25% workforce
Small family run firms causing problems
Often focus profits not long term reinvestment- self-interested
Complacency of sons and grandsons of family run firms- more interested in being country gentlemen than leaders of commerce
During depression - prioritise profits rather than invest in technology- such as economies of scale, spinning and weaving on same side
Overall factors cuaisng problems
Decline demand abroad
Complacency- small family businesses
Standard of living improved- regional variations
More factories established
Better paid jobs available for urban workers
Wages and employment improve by 1914
Steel worker pay off debt
Wages increase dramaticaly mid 1870s to mid 18900s
Unemployment level close to mid v boom
Real terms prices tumbled by over 400%
Urban worker real wage 60% ihgehr in 1900 than 1880
More workers above poverty line
Living standards improved by 1914
Able to purchase soap and chocolate
Diet improve- canned meat and corned beef- imported
More lower classes aftford meat before mostly bread
Holidays to brighton by train- middle class
Family size drceease
1861-669- av 6.166 children down to 4.13 in 1890-99
18800-1991 middle class reduce children by 30^%, working class by 66%
Education
1870 and 1880 act meant children less financial asset
1906 free school meals
Old age pensions and national insurance
Housing- improved by 1914
Stopping back to back houses
Individual toilet per houshhold- by laws, stipulations- improve public health
Regional variations- living did not improve
Emigration from rural to urban areas- halved from 15 to7.5% 1871 to 19001 rural ddepression
Wages and unemployment - living standards worsen
Unemployment steady
Married women employed very poorly paid- sweated insury
Booth saw irregularity of work- miliner turned to prostitution in the slack season- morality tested
18709 and 1886- unemployment reached 10%
