(Changing political landscape) The National Government, 1931-1945 Flashcards
_______ government won a chance to serve as a _______ ________ government in 19__.
a) labour
b) second minority
c) 1929
Why were labour’s plans for social reforms blunted?
There was a depression in 1929 that created an ‘economic blizzard’.
How did Britain’s economic recovery after the depression compare to the rest of the world?
They recovered quickly.
When was the NG established?
1931
Who were the leaders of the NG between 1931-1945?
4
Ramsey MacDonald 1931-35
Stanley Baldwin 1935-37
Neville Chamberlain 1937-40
Winston Churchill 1940-45
What were the 4 threats the NG was faced with?
Economic threats
Opposition of labour
Rise of extreme politics
Foreign policy threats
Economic threats - it felt necessary to support British industry at a time when economies around the world were similarly suffering.
How did the government do this?
1932 Imports Duties Act - 10% tariff on most imports.
Attempts were made in line with this to establish Imperial preference by encouraging trading with countries in the British Empire.
Economic threats - to support British industry, the govt attempted to establish imperial preference by encouraging trading with countries in the British Empire.
Why didn’t this work?
Wasn’t a coherent system of free trade as many of the countries depended on strong global networks outside the Empire.
Economic threats - what was done to deal with the economic threats?
(5)
Support British industry
Adopt conservative spending measures
Lower interest rates
Break with Gold Standard
Introduce grants where necessary
Economic threats - the govt adopted conservative spending measures which helped lower govt spending and stimulate recovery in some areas of the country.
Give evidence of how they did this.
Unemployment Act of 1934 introduced a “means test”, meaning that while most workers were covered by the 1920 Unemployment Insurance Act, most benefits only lasted for 15 weeks per year.
Economic threats - the govt adopted conservative spending measures which helped lower govt spending and stimulate recovery in some areas of the country.
One way they did this was through the Unemployment Act of 1934.
How could this be viewed as NECESSARY?
Without these cuts, the May Report in 1931 predicted the spending deficit would be as high as £120 million in 1932.
Economic threats - the govt adopted conservative spending measures which helped lower govt spending and stimulate recovery in some areas of the country.
One way they did this was through the Unemployment Act of 1934.
How could this be viewed as BAD? (2)
Made the poor poorer & those who could take advantage of other measures like cheaper bank loans tended to be middle-class.
A wealth gap opened up as well as less overall spending, arguably delaying the speed of recovery.
Economic threats - the govt introduced lower interest rates to encourage borrowing.
Give evidence of this.
6% to 2%.
Economic threats - why did the govt adopt conservative spending measures?
To lower govt spending and stimulate recovery in some areas of the country.
Economic threats - why did the govt support British industry?
It was a time when lots of economies around the world were all similarly suffering.