Economic developments 1886-1914 Flashcards
% of Britains steel production 1875, 1880, 1885, 1890
35,9%, 32.7%, 31.8%, 24.6%
what was one of the reasons for Germany + USA introducing taxes on imported goods?
because they were facing an economic slow down and had similar problems to Br
what lead to decline in Br economy?
trade barriers -> more expensive to export goods, Br allowed free trade
increase comp overseas -> not absolute decline but Germany + US were more advanced
what lead to growth in Br economy?
rise in living standards -> as long as you were in a job it increased as things were cheaper, thus more disposable income
appearance of smaller industries eg Cadburys + Levers -> new areas due to technical innovation
how did tariffs being imposed on Br by other countries effect Br exports?
made them more expensive than good producing within that country, reduced demand for Br goods, tariffs allowed native industry to grow + invest, enabling them to compete with Br produced goods in LT
why was Br productivity poor in comparison to G + US?
- poverty + poor health of the working class
- limited levels of investment in new technologies
- br capital invested abroad rather than at home
- poor levels of scientific + technological education eg 1913 G produced 6 times more science graduates
what was a clear sign of decline?
fall in price of some industrial goods eg textiles 30%
why was demand low in Br?
high unemployment + stagnant wages
what is the balance of trade?
the value of exports - the value of imports
what was International trade like?
- growing deficit emerging
- struggling against mass produced goods in G + US
- agriculture couldn’t survive against foreign imports
what did Br + city of London look like in 1896?
still one of the worlds leading economies, London became a world leader in financial services
Britain switched their focus to the service sector + commerce, where Br excelled
with invisible imports the balance of trade remained positive
how much did GDP increase by 1900-1913?
1.7%. a year, suggesting the economy was still functioning effectively
how much did coal production increase by 1900-1913?
223 mill tones -> 287 mill tons
conclusion about the aftermath of the Great Depression?
Britains share of the worlds manufacturing continued to fall and Germany + US had certainly over taken but the decline was comparative not real
British economy continue to grow + so did British production
reasons for British industry problems?
- Br didn’t update their technology eg in the steel industry
- new industries which Br had created eg dyes, chemicals and electricity - G + US established them better
- other countries were now producing their own raw materials which reduced Br exports
- small family run firms concentrated on profit rather than LT reinvestment
- free trade put it at disadvantage after 1880 as other countries imposed tariffs
what happened to agriculture?
- declined sharply as cheaper cereals were imported
- thousands of workers laid off
- farmers went bankrupt
- land used for growing cereals feel from 9.6 mill to 6.5 mill
- the loss of income led to lack of maintenance of farm land + stagnant wages for labours + shrinking workforce
what happened to agriculture after 1900?
limited recovery, output increased by 5% from 1900-14, prices rose slightly , govt supported farmers moving to dairy + market garden farming
how did staple industries suffer?
br was slow to adopt larger, cheaper and more efficient which led to high costs where as USA had new machinery which was quicker and lowered costs, productivity was very low compared with other countries + safety records were poor
steel production in 1913 between USA, Germany + UK
tons of steel mill
13
7
5
how many cars were there in Britain in 1914?
132,000
what new industries were there?
motor
bicycle
chemicals
electrical
what did the creation of the electrical industry bring?
steam turbine meant that electricity could be produced on a large scale
electricity could be used to power wireless telegraphy + models of transport eg trams
where were huge profits being made?
city of London through invisible exports of financial services, trading + shipping
in 1900 what success was experienced in shipping?
45% of ships entering French ports were British
55% entering us were British
British shipping generated £100 mill per year from 1911-13
argument for free trade
helped drive down food prices -> cheap food was essential to working classes, between 1880-1900 they had no notable increase in wages will prices fell by 25% so they benefited
improves nations business + industries -> they have to innovate in order to compete with other countries
most peoples staple diet was bread so if taxes were on imported wheat would increase the price of bread
arguments for protectionism
- Br had faced high competition and the other countries had introduced tariffs to protect their industries against British imports
- tariffs could raise money to be spent on reforms to help the poor
- br goods would be cheaper to buy + no. of order would increase
- chamberlain claimed br did not have economic might to compete on an uneven playing field
