economic developments 1886-1914 Flashcards
1
Q
the Great Depression 1873-86
A
- royal commission was set up to investigate trade and depression
- commission was in favour of free trade
- free trade seen as cause of falling profits
2
Q
evidence there wasn’t a depression
A
- economy was functioning - between 1900-13 GDP increased on average by 2% annually
- staple industries increased output: coal 223M tons to 281M
- dominance in shipbuilding remained 60% merchant ships were British
- increase in foreign investment £50M 1901 -> £200M 1913
- despite B’s share of worlds manufacturing declining due to growth of USA and G, B’s economy and production still grew
3
Q
evidence of a depression
A
- ability to maintain position in world markets and staple industries questioned: books published ‘made in Germany’ and ‘American invaders’
- debates on national efficiency
- attention and focus paid to Darwinist thinking - ‘physical deterioration’ idea of genetic decline in British race - solution = Eugenics
- poverty exposed via recruitment for Boer War and reports by Rowntree and Booth
4
Q
British industry stats 1870-1914
A
- 1870 B produced 33% of world’s manufactured goods
- 1913: B produced 13%, USA produced 35% and G produced 16%
- USA and G seemed to be doing better but B started from high base = slow growth compared to newly emerging developing economies
- B’s industrialists less dynamics and flexible
- B has more craftsmen than USA = cost-reducing technical innovations not adopted
- G ahead in education of technical and managerial roles
5
Q
theories of what’s at the core of B’s industry issues
A
- the early start thesis
- declining demand abroad
- low wages
- supply-side factors
- dominance of British entrepreneurs
6
Q
the early start thesis
A
- B faced long-term disadvantages from being the country industrialising first
- techniques and processes became outdated and initial advantage lost
- later starters can learn and adapt from initiators
- introducing electricity to the B cotton industry would’ve required redesigning the weaving sheds while in USA it could be implemented originally
- new industries were able to be better established in USA and G
- B developed chocolate/ soap but this didn’t contribute to significant innovations to benefit economy
7
Q
decline demand abroad
A
- other countries developed their own raw materials and manufacturing so B was the workshop of the world
- USA and G exploited their own natural resources reducing B imports
- free trade put it as a disadvantage after 1880 as other countries imposed tariffs on British goods
- exports increased by 3% between 1889-1913
- employment didn’t fall: emigration high and lack of modernisation = need for workers
8
Q
low wages
A
- suppressed B demand for manufactured goods
- USA workers received higher pay and generated demand
- B manufactures concentrated in high-quality goods aimed at the aristocracy > mass market with cheaper goods produced on production lines
9
Q
supply-side factors
A
- USA - shortage in skilled labour forced industry to develop labour-saving machinery in 1910
- US textiles and tinplate industries produced the same amount as B with about 25%of the workforce
- B had no need to develop efficiency in terms of labour or fuel
10
Q
dominance of British entrepreneurs
A
- fairly small family-run firms often focus on profits not long-term reinvestments
- younger generations were focused on being country gentlemen not leaders of commerce
- during depression they preserved profits by cutting wages rather than investing in technology, moving to mass production, developing better management techniques and integration
- mass retailing to a new scale
11
Q
agricultural decline
A
- decline sharper than in industry because of cheap imports cereals, thousands of agricultural workers laid off, farmers went bankrupt and land used for growing cereal crops fell from 10M to 7M 1872-1913
- arable to pasture land = meats and dairy products
- livestock farmers boosted by low prices of animal feed
- loss of income leading to lack of maintenance of farmland, stagnant wages for labourers, shrinking workforce
- farmers suffered as bread prices fell
- agricultural output increased by 5% between 1900-14
- wouldn’t recover to previous highs
12
Q
key developments in agriculture
A
- movements from arable to pasture farming
- dairy products became in demand - milk
- market garden farming - intensive farming near cities, producing fresh fruits, vegetables and flowers
- banned live cattle in 1892
13
Q
by 1886 why was Britain vulnerable to the changes in the world economy?
A
- over-reliance on staple industries
- other countries weren’t reliant on B exports of coal, iron and steel as were exploding their own resources
- USA and G had own natural resources and new industries/ manufacturing techniques surpassed any developments in B
14
Q
evidence of foreign competition
A
- USA textiles industry used electricity, modern machines, the latest spindles all lowering costs
- Lancashire remained with older methods even when 95 new cotton mills opened 1905-1907
- 1913 8% coal was cut mechanically in B and 25%+ USA
- more men were employed than ever but productivity low in comparison to other countries
- 1870s B output of coal was 110M tons and exported 13% but in 1913 output of 280M tons but none was exported
- steel production in 1913 shows B being behind: USA 13M tons, G 7M, B 5M
15
Q
shipbuilding
A
- B slower to adopt larger cheaper and more efficient steel processes, production of pig iron instead of steel
- steel industry success = dominance in shipbuilding and naval race up to WW1
- developments: oil-fired turbines and steam turbines - ensured B remained dominant
- later were improved and adapted by foreign competition
