Chapter 14 Flashcards
'The Hungry Thirties' 1929-1939
Why was Britain one of the first countries to be affected by the Wall Street Crash October 1929?
US put up high tariff barriers to protect its own goods, making it impossible for British goods to sell. Trade became impossible with the US and they demanded all loans back
How many people were unemployed by 1931?
3 million
What did the May Reports cause?
A further crisis in confidence of the sterling and a ‘run’ on the pound
How much gold was being withdrawn daily in July 1931?
2.5 million
What was the Orthodox view on the crisis?
Keep to traditional economic policies, cut government spending, keep value of the pound
What was Keynes’s view on the crisis?
Borrow money to spend on projects which would provide more jobs,
What were Oswald Mosley’s views on the crisis?
Borrow money and spend more on public services, introduce tariffs to protect jobs, increase pensions and benefits
What was the Conservative view on the crisis?
Agreed with the Orthodox but argued for protection instead of free trade (later abandoned in 1930)
What was the extreme left-wing socialist view on the crisis?
Extremists believed that capitalism was collapsing according to Karl Marx and should instead be replaced by a socialist economy
Why was there a second ‘run’ on the pound in 1931?
Investors heard of a mutiny among naval troops which were protesting pay cuts
How much did the pound fall by in September 1931?
It fell from $4.86 to $3.40
Why was the 30% devaluation beneficial to Britain’s economy?
It made British exports cheaper and therefore easier to sell
Why was the devaluation’s success also limited?
Other currencies also left the gold standard and also depreciated in value
How did ‘cheap money’ help economic recovery?
It made it easier for industries to borrow money for investment and made it easier for consumers to borrow money for mortgages
How many council houses were built between 1931 and 1940?
700,000
What bill did Chamberlain introduce in 1932 to help economic growth?
The 1932 Import Duties Bill which imposed a general duty of 10% on all goods entering Britain
What happened during the Ottawa Conference in July and August 1932?
Dominions such as Australia and Canada expressed concerns that their industries would be affected by British competition - an agreement was made to stop this
What did the National Government claim in their 1935 manifesto?
‘Under this leadership we have emerged from the depths of depression to a condition of steadily returning prosperity’
How did retrenchment have an adverse effect on industry?
It lowered the total demand for goods and services in the depth of the depression
How did new industries actually benefit from the Great Depression?
Output of motor cars doubled from 1929 and 1939, while the output of electricity quadrupled between 1925 and 1939
Why was there economic recovery in industry?
Lower prices meant that those with a job made their wages stretch further, there was always more people in work than out of it, general social trends towards smaller families
How did the housing industry help economic recovery?
Rising consumer demand led to an expansion of the housing market and encouraged jobs in service industries
How was trade affected by the Great Depression?
Britain suffered disproportionately as Britain exported more goods than any other country in the world
How was agriculture affected by the Great Depression?
Farmers abandoned their arable land and some switched to other products, meaning that Britain became more dependent on food imports
How did the government help farmers during the Great Depression?
Government assistance in land drainage and soil improvement schemes, greater mechanisation, improved credit facilities and marketing boards
