Economic Developments 1886-1914 Flashcards
How was having small firms in Britain a problem
Britain was mainly made up of smaller firms rather than larger firms like the US
The drop in profits hit them hard as they couldn’t invest in new technology
Factories would require a higher percentage of their turnover
Lack of investment led to a degree of stagnation in British industry
When were export values of the 1870s exceeded
Late 1890s, providing evidence that there was a great depression between 1873 and 1896
When were cotton good export values of 1872 equalled
1904
When was the worst year of cotton good exports
1895
How fast were Germany and US economies in comparison to Britain
twice as fast
British GDP after the Great Depression
Rose 1.7% each year from 1900 to 1913
How much did coal production increase
223 million tons in 1900 to 287 million tons in 1913
How much did British foreign investment increase
£50 million in 1901 to £200 million in 1913
How much of the world’s manufactured goods did Britain produce in 1913
14%, a decrease from 33%
Reasons for British industry’s problems
‘Early start thesis’, being the first industrialised nation
Declining demand abroad
Low wages
Lack of reinvestment and innovation
Why did the agricultural industry deteriorate
Cheap imported cereals led to thousands of workers being laid off
Farmers began to go bankrupt
Amount of land used to grow cereals during this period
Fell from 9.6 million in 1872 to 6.5 million in 1913
What area of agriculture was better protected
Livestock was better protected as it was harder to transport products such as milk
Most of the land was converted to pasture
Animal feed was cheaper due to import of grains from US
What type of farmers succeed during this period
Dairy famers because milk was hard to import and the growth in the middle class demanded more dairy products
What areas of Britain saw an increase in livestock
Lancashire and West Country
Issues within agriculture
Stagnant wages for the labourers
Fields left to become rough pasture
What new agricultural technology was developed
The self binding reaper and a new plough that could work two farrows at a time
Agricultural output 1900-1914
Increased 5%
Machinery used by USA in the textile industry
Electricity, modern machines and spindles all lowered costs
What percentage of coal was cut by mechanically in 1913 in Britain compared to the US
8% compared to 25% in the US
How did the British steel industry suffer
Stuck to the production of pig iron and were slow to adopt more efficient processes to produce steel
Advances in ship building
Dominated ship building, especially in the lead up to the First World War
Developed oil fired turbines
Staple industries didn’t suffer too much
Coal, textiles, iron and steel were responsible for 50% of British output and employed 25% of the workforce
Value of British exports in steel and iron
Increased from £32.5 million in 1890s to £62.9 million in the 1910s
Tonnage of ships built in Britain
Increased from 377 in the 1880s to 674 in the 1900s
New industries emerged
Cars, bicycles, chemicals, electricity
Car industry
The repeal of the 1865 Red Flag Act in 1896 neat that more cars could be produced
By 1914 there were 132,000 cars in Britain
American car industry was on a larger scale
Mass production of cars such as the Model T Ford in 1908 meant that it was more affordable to a large proportion of the US population
The chemical industry slacked
Britain failed to adopt new methods like the Solway ammonia process
Developments in the electricity industry
The first power station was built in 1881 at Goldalming
The development of the sea turbine meant that electricity could be produced on a large scale
British investment abroad in 1913
£4000 million, compared to the combined investment of France, USA, Germany, Holland and Belgium being £5500
How much did British shipping generate
£100 million per year from 1911-13
What invisible industries did Britain dominate
Banking and insurance
Lloyds of London had an monopoly in the insurance of shipping
Expansion of British banking
Had branches all across the world, reaching the likes of South America and Hong Kong
How was invisible trade not helloing Britain
Twice as much capita was being invested abroad as was being at home in 1911-13
It was not helping technical innovation on a long term basis
When did the cross party consensus over free trade end
In 1902 when the conservatives introduced a one shilling tariff on imported wheat for the Boer War
And in 1903 with the proposals of the secretary of colonies, Chamberlain, to introduce protectionism
Working class benefitted from free trade
Drove down food prices
Prices fell around 25% between 1880 and 1900, while wages attend consistent
The middle class befitted from free trade
Large influx of cheap manufactured goods
Arguments for protectionism
British industry and agriculture was struggling to compete with US and Germany
Other countries had tariffs on their goods
Free trade had led to unemployment
Tariffs could raise money for social reforms
What did Chamberlain propose for tariff reform
To only place tariffs on goods outside of the Empire
How did Chamberlain’s tariff reform affect the conservatives
It split the cabinet and Balfour remained on the fence during the debate
Chamberlain resigned in September 1903 and moved to a policy of full protectionism
