Chapter 2 Flashcards
The state of the economy
What was the population of the United Kingdom in 1906?
43 million people
Where was coal mining was prevalent in the UK?
Yorkshire, South Wales, and the north-east
What was the biggest single category of occupation in 1906?
Domestic services
Which new industries were being established by 1906?
Electricity, chemicals and motorcars
What were the main staple industries?
The textile industry, steel industry, coal and shipbuilding
What was one of the major issues in determining Britain’s economy?
Reliable statistical information did not exist
Why was it possible to optimistic about Britain’s economy?
Britain was the key shipbuilding nation, output of iron and steel was still increasing, coal continued to be profitable
What was the growth rate of these new industries?
3.8%
How many people were working in agriculture by 1901 and why?
1,400,000 because of mechanisation and exports were more common
Why did farmers have to change their production by 1914?
Agricultural depression in the late 19th century and competition abroad for cheap grain
What were invisible exports?
Exports of services such as banking, insurance shipping goods and lending or investing money
What percentage of goods and services in Britain were sold abroad?
30%
How much of Britain’s overall wealth was in investments overseas?
32%
What is a trade gap?
When the value of a country’s visible imports exceeds that of visible exports
Why was a lack of research and investment in new technologies a problem?
America and Germany pioneered more effective ways of producing goods such as iron (they were Britain’s largest economic rivals)
Why was there a lack of innovation in Britain?
Factory and plant equipment was in general less modern and British mines were labour intensive (over one million were employed from 1913-27)
In what ways was Britain weaker in ‘new industries’?
The German chemical industry was twice the size of the British one - 90% of artificial dyes were imported
How did a ‘low-wage’ economy affect the British economy?
A ‘low-wage’ economy meant that only rich and middle class people could afford to buy the new manufactured goods
How did Britain differ to the USA and Germany in handling free trade?
Germany and the USA both used tariffs to keep their domestic markets free from competition whilst Britain used free exchange of goods between countries
What is some evidence to suggest that Britain was weaker than its rivals in education?
Both the USA and Prussia had introduced primary education from the early nineteenth century. Fewer than 300 students were taking applied sciences by 1908
How did foreign competition affect problems in agriculture?
Steamships and railways meant that grain from the USA was sold much more cheaply - only a quarter of wheat sold in Britain was made in Britain
What was a positive aspect of British industry 1906-14?
The staple industries were still profitable and often increasing
What were positive aspects of British trade 1906-14?
World trade was expanding rapidly, London was commercial centre of the world, world’s largest foreign investor
What were positive aspects of British agriculture 1906-14?
Cheaper imports of cereals and foodstuffs, home demand remained strong, value of wages in agriculture rose
