Chapter 10-Economic issues Flashcards
What were the positive developments in the economy in the 1920s?
The new industries were growing at a fast pace, motor production was 3x that in 1913, economic growth was faster than before 1914, there were rising living standards and a million jobs were created in the service sector.
What did the Labour and Conservative governments do to deal with trade problems?
Baldwin proposed tariff reform but then lost the 1923 election. The Labour government signed a trade treaty with Russia to revive trade but it was cancelled by Baldwin.
How did Labout try to deal with unemployment?
They launched a public works scheme to create jobs by spending on roads and council houses. However, it was on a too small scale and was over a short period so it didn’t have much of an effect.
What did Labour do to improve industry?
They extended subsidies to Imperial Airways and this helped the development of the civil aviation industry.
What did Baldwin do when he came PM which impacted the economy?
He broke off relations with Russia, stopping Anglo-Rusian trade and he put Britain back on the Gold Standard. However, this made Britain uncompetitive in industries such as coal and caused more unemployment.
What issues were there with the coal mines?
Conditions were poor and the work was dangerous. Between 1922 and 1924 3603 miners were killed and 597,158 were injured but pay remained low. The industry was also in decline and it was made worse after the war.
Why was there a General Strike in 1926?
Going back on the Gold Standard meant that exports were more expensive and in the first 6 months of 1925 they made a loss of £2.1 million. As a result mine owners called for wage cuts and longer hours which the miners opposed.
What were the events that happened in the lead up to the strike?
The miners called for support from the railwaymen and dockers after mine owners threatened a lockout. Baldwin offered financial support to subsidise wages and profits for nine months. Baldwin also set up the Samuel Commission to report problems of the coal industry and it recommended wage cuts but not longer hours. The miners and mine owners accepted the parts they liked and rejected the other side and when subsidies ended, owners claimed they would lock out miners. The miners appealed to the TUC for support and they called on other trade unionists to strike. Baldwin failed to prevent a strike and instead involved the Emergency Powers Act. On the 3rd May the General Strike began.
Why was the General Strike a Failure?
It lasted 9 days and Baldwin organised workers to move supplies. Baldwin argues the Strike was a threat to the constitution and put Churchill in charge of the British Gazette to undermine support for the strike. The TUC leadership was not organised for a nationwide strike and they called print workers to strike, preventing the word of strikes from being spread. The government refused to back down and on the 12th May the TUC called off the strike.
What were the results of the General Strike?
The miners had to accept lower wages and longer hours and when they returned to work they faced penalties. The strike cost the railwaymen and transport workers a lot, making them less likely to support future strikes. The Trade Disputes Act was passed to make sympathetic strikes illegal and trade union membership dropped below 5 million in 1927. The workers and unions turned against Baldwin and the Conservatives after the Trade Disputes Act.
