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British History Y1 > Economic Impacts of WW1 on Britain > Flashcards

Economic Impacts of WW1 on Britain Flashcards

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1
Q

what did the size of the war require?

A

state intervention on a huge scale

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2
Q

what policy were the gov steering away from during B’s wartime economy?

A

laissez-faire

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3
Q

define laissez faire

A

limited state intervention in its economy and/or society

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4
Q

what did Britain have to support a massive increase in?

A

production of weapons of war

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5
Q

how many shells had been produced by early 1915?

A

2 mil

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6
Q

by 1918, what was the overall shell production?

A

187 mil

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7
Q

what did the supply of machine guns increase to from 1914 to 1918?

A

1914: 270
1918: 120,870

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8
Q

what was the supply of machine guns in 1914?

A

270

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9
Q

what was the supply of machine guns in 1918?

A

120,870

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10
Q

what did B have to supply to its allies?

A

vast quantities of war materials

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11
Q

List 3 huge demands

use FFT

A
  • provide transport
  • increase and protect provision of food
  • ensure adequate supplies of fuel (especially coal)
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12
Q

what did the huge demand posed by the war do to prices in 1914?

A

pushed up prices

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13
Q

what was in shortage due to the huge demand posed by the war in 1914?

A

materials and workers

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14
Q

Why did the state control of stocks of vital war materials and fixing prices? (3)

A
  • Private industry couldn’t cope with on its own
  • protection purposes due to U-boat campaign Germans
  • failure of Nueve Chapelle offensive 1915; shortage of shells
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15
Q

What was the first major assault by British forces vs German defences in the West?

A

Nueve Chapelle

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16
Q

What did DLG persuade parliament in 1915 to grant?

A
  • Greater state powers over industry by extending DORA

- set up MOM

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17
Q

what was the purpose of MOM? (Peppa Pig Sings)

A 
oversee:
-production
-purchase
-supply 
of all war material
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18
Q

what did MOM set up?

A

central purchasing system for buying essential war materials

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19
Q

what did MOM organise?

A

British science to help war effort

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20
Q

what did MOM encourage?

A

development and production of new weapons

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21
Q

list two new developments of war weapons that MOM encouraged?

A
  • tank

- mortars

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22
Q

what did MOM encourage factories to do?

A

-convert from peacetime to war production

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23
Q

what did MOM build?

A

its own national factories - some of which became huge enterprises

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24
Q

how many people were employed in the Leed’s MOM national factory?

A

16,000 workers

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25
Q

how many shells were produced in the Leed’s MOM national factory a year by end of the war?

A

25 mil shells p.a

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26
Q

list 3 key industries that came into state control

A
  • railways
  • docks
  • coal mines
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27
Q

by 1918, how many state factories did MOM directly manage?

A

250

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28
Q

by 1918, how many state factories did MOM supervise?

A

20,000

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29
Q

by 1918, how many workers did MOM control?

A

4 mil

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30
Q

what were women encouraged to do during the war time eonomy?

A

take up jobs usually only done by men

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31
Q

what else did MOM control? (WPP)

A
  • wages
  • profits
  • prices
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32
Q

what did MOM ration?

A

essential foods

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33
Q

what % of all imports did MOM buy?

A

90%

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34
Q

what were MOM in charge of? (2)

A
  • transport

- fuel

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35
Q

what did the state do to the clocks?

A

altered them by introducing British Summer Time

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36
Q

what did the state do to the strength of alcoholic drinks?

A

reduced

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37
Q

what did the state limit?

A

opening hrs for public houses

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38
Q

why was it hard to feed the huge armies? (2)

A
  • shortage of labour on land

- German U-boat campgain sinking merchant ships bringing food from overseas

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39
Q

what was set up to increase the amount of home grown foodstuffs?

A

Department of Food Production

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40
Q

why was Department of Food Production set up?

A

to increase the amount of home grown foodstuffs

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41
Q

why did the gov subsidise farmers?

A

-to plough wasteland

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42
Q

what was done in order to plough wasteland?

A

government gave farmers subsidies

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43
Q

what did the gov allocate farmers with?

A

scarce fertlisers

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44
Q

what/who was supplied to work on the land?

A

prisoners of war

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45
Q

what were females encouraged to volunteer for?

A

helping with farm work

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46
Q

T/F in 1913, gov expenditure and revenue was balanced

A

TRUE

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47
Q

what happened to gov expenditure and revenue from 1913-1918?

A

gov expenditure was far greater than gov revenue

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48
Q

what did gov spending go from in 1913-1918?

A

1913: £200 mil
1918: £2600 mil

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49
Q

define balance the budget

A

ensure that gov only spends as much money as it receives so it avoids going into debt

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50
Q

how was B able to spend so much?

A

loans - especially from USA

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51
Q

what policy was abandoned during war?

A

balancing the budget

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52
Q

who did B borrow money from? (2)

A
  • borrowed money from its own people

- and from neutral countries

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53
Q

what was increased in order for gov to spend money?

A

taxation

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54
Q

who was taxation increased for? (20=)

A
  • middle class

- workers

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55
Q

what sort of tax was greatly extended in 1915?

A

income

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56
Q

what year was income tax greatly extended?

A

1915

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57
Q

what bank mainly financed the huge amounts of war materials B bought from USA?

A

NY banking firm J.P. Morgan

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58
Q

what was happening in late 1915 to B’s financial reserves?

A

running out

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59
Q

how much was the loan that the USA agreed to give to B?

A

$5000 mil

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60
Q

what became more crucial to B’s war effort?

A

financial dependence on USA

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61
Q

what did B face when war ended?

A

huge debt and severe economic harships

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62
Q

what were workers hit by an increase in?

A

cost of living

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63
Q

what happened to the cost of living and who did this effect?

A

workers + it increased

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64
Q

what is the % of increase in food prices in the first month of war?

A

10%

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65
Q

what happened to food prices following the start of the war?

A

continued to increase

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66
Q

by 1918, what had doubled?

A

food prices

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67
Q

what happened to food prices in 1918?

A

doubled

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68
Q

in what year did food prices double?

A

1918

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69
Q

in 1914, how were prices and wages levels?

A

balanced, 100

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70
Q

in 1918, how were price and wage levels?

A

unbalanced - 203 (prices), 195 (wages)

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71
Q

what did workers benefit from?

A

more work

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72
Q

list 2 benefits for workers

A
  • full time work

- many unskilled workers had bargaining power due to labour shortages so they earned more

73
Q

what could those already in work do to increase earnings?

A

work overtime

74
Q

list 2 pieces of evidence to show better living conditions for the poorest in working class

A
  • lower levels of working class mortality

- low poor relief applications

75
Q

what classes were disadvantaged by the war?

A
  • middle class

- upper class

76
Q

why were the middle/upper classes disadvantaged by the war? (2)

A
  • higher income tax rates

- taxes on land

77
Q

what happened to many landed estates?

A

sold off

78
Q

what was the % of land holdings in England being sold between 1917-1921?

A

25%

79
Q

how were conditions for many working class houses?

A

poor

  • lacked basic facilities
  • over crowded
80
Q

what did war do to housing situation?

A

worsened it

81
Q

what were the two major factors that worsened housing situation during war?

A
  • new house building and even major repairs were generally halted
  • demand for munition workers meant even more people coming into already overcrowded industrial towns
82
Q

why did landlords increase rents?

A

increase demand combined with no increase in supply of houses

83
Q

what was a place where the housing situation was especially bad?

A

Glasgow

84
Q

who led unrest to gov which meant they introduced a Rent Restriction Act in 1915?

A

Mary Barbour

85
Q

what was introduced as a result of unrest in Glasgow led by Mary Barbour?

A

Rent Restriction Act 1915

86
Q

when was the Rent Restriction Act introduced?

A

1915

87
Q

what did DLG promise houses would be fit for?

A

“fit for heroes”

88
Q

who introduced the first Housing and Town Planning Act in 1919?

A

Christopher Addison

89
Q

when was the first Housing and Town Planning Act introduced?

A

1919

90
Q

what did the first Housing and Town Planning Act encourage local gov to do? (2)

A
  • clear slums

- construct low rent homes for working class

91
Q

how many houses had been built by 1922?

A

200,000 houses

92
Q

200,000 houses were built by what year?

A

1922

93
Q

what was the true building of houses cost but what did Addison end up paying?

A

true cost: £385

payed: £910

94
Q

why was Addison sacked?

A

following outcry vs us of public money to subsidise building industry

95
Q

what did DLG have to do in HOC?

A

apologise for house building issue

96
Q

by 1922, what had been withdrawn?

A

grants for housing

97
Q

because grants for housing had been withdrawn, what was the result of this?

A

shortage of over 800,000 homes for lower classes

98
Q

what did Addison’s act establish?

A

principle that housing was now considered necessary public service that local gov were responsible for providing

99
Q

define recession

A

a slowdown in economic activity which can lead to businesses closing down and thus more unemployment

100
Q

what occurred after 1921?

A

economic recession

101
Q

what did the economic recession that occurred after 1921 mean?

A

rather than expanding social provision, gov had to consider a policy of retrenchment

102
Q

define retrenchment

A

cutting back on gov spending

103
Q

why did gov appoint a committee under Sir Eric Geddes?

A
  • struggling with debt interest
  • falling tax revenues in trade slump
  • rising spending
104
Q

what did the committee under Sir Eric Geddes recommend?

A

cuts of £86 mil reduced to £64 mil - became known was the “Geddes Axe”

105
Q

what are the impacts of the Geddes Axe? (4)

A
  • housing subsidies withdrawn
  • £46.5 mil cut from armed forces and £18.2 mil from education
  • Agr Act 1920 was repealed
  • Unemployment Act altered to make it more hard for unemployed to claim benefits
106
Q

how much money was cut from armed forces under the Geddes Axe?

A

£46.5 mil

107
Q

how much money was cut from education under the Geddes Axe?

A

£18.2 mil

108
Q

what did the Agr Act of 1920 do? (2)

A
  • gave price guarantees for farmers

- maintained min wages for farm laborours

109
Q

when was the Agr Act?

A

1920

110
Q

under the Geddes Axe, what was the impact on Unemployment Act?

A

it was altered to make it more hard for unemployed to claim benefits

111
Q

what stance did TU adopt during war?

A

patriotic

112
Q

what did DLG negotiate with TU movement?

A

keep strikes at min

113
Q

what did the Treasury Agreement in 1914 specify?

A

unions involved in vital war work not allowed to strike

114
Q

what act banned strikes for munition workers?

A

Munitions of War Act 1915

115
Q

what also became illegal for workers in key production posts?

A

to switch jobs w/o permisson

116
Q

reaction of some workers to bans/acts

A

some objected and believed that TU no longer fulfilling role of fighting for better wages and conditions

117
Q

what were there complaints about in particular by TUs?

A

acceptance of dilution agreements

118
Q

define dilution agreements

A

agreement between gov and TU in various industries to allow semi’skilled, unskilled, and female workers to be trained to do jobs previously reserved for skilled craftsmen

119
Q

what continued despite bans?

A

strike activity

120
Q

in 1917, how many strikes were there across B?

A

48

121
Q

by 1918, what was clear about relationship between gov and TU?

A

good relationship coming to an end

122
Q

what was stronger by 1918?

A

TU movement

123
Q

what happened to membership in 1921 (TU)?

A

doubled to 8 mil

124
Q

what was the mood amongst TU?

A

militancy

125
Q

what happened in early 1920s?

A

creation of v large unions through amalgamation eg Transport and General Workers Union (TGWU)

126
Q

what does TGWU stand for?

A

Transport and General Workers Union

127
Q

who led TGWU?

A

Ernest Bevin

128
Q

when was there a police strike in Liverpool?

A

1919

129
Q

when were there serious riots in Glasgow?

A

May 1920

130
Q

what R campaign did unions support?

A

“Hands off Russia”

131
Q

what did dockers refuse to load?

A

a ship w/ weapons to be used vs R communist

132
Q

who continued to try and improve industrial relations?

A

DLG

133
Q

in 1919, what did DLG manage to put a stop to?

A

rail strike

134
Q

what did DLG avert the threat of in Feb 1919 and how?

A

coal strikes by appointing Sankey Committee to investigate pay and conditions in coal industry

135
Q

what did DLG set up to negotiate wages rates and look at production methods?

A

industrial councils

136
Q

why were industrial councils set up?

A

to negotiate wages rates and look at production methods

137
Q

why did wages get slumped and why did no. of strikes grow?

A

industrial recession that started in 1921

138
Q

how many days were lost in strike activity in 1921?

A

almost 86 mil days

139
Q

define nationalising

A

taking an industry into state ownership, organisation and control

140
Q

what did Cons-dominated cabinet refuse to accept?

A

recommendations of majority of Sankey Commission to nationalise coal mines

141
Q

why was Sankey Commission set up in 1919?

A

investigate wages and conditions in mines

142
Q

what did the Sankey Commission’s reveal about conditions in mines?

A

poor living conditions; chaotic structure of industry

143
Q

what Sankey Commission recommendations were agreed by gov?

A
  • higher wages

- shorter working day

144
Q

why did Cons want to avoid nationalising coal mines?

A

too radical and sounded too much like socialism

145
Q

why did miners who wanted coal mines to be nationalised feel betrayed by gov?

A

they suffered from harsh conditions and this would help to alleviate exploitation from mine owners

146
Q

what were used to end strikes regarding nationalising coal mines?

A

troops and tanks

147
Q

what did post-war strike activity lead many to fear?

A

B workers may follow eg of R communists who had taken control of gov under Lenin in 1917

148
Q

what was DLG told there would be?

A

“some sort of revolution” w/i next 12 months

149
Q

what was established in 1920?

A

Communist Party of Great Britain

150
Q

what was centre of radical unionism?

A

Clydeside in Glasgow

151
Q

how many demonstrators filled up George Square in 1919, demanding the 40-hr week and raised socialist red flag?

A

90,000

152
Q

how did gov react to demonstration at George Square?

A

sent in troops and tanks

153
Q

what were most workers in B more concerned with?

A
  • low wages
  • rising prices
  • food shortages
    as opposed to political change
154
Q

what occurred in 1919 and 1920?

A

economic boom

155
Q

how were domestic and export industries doing 1919?

A

well

156
Q

what was rising? (4)

A
  • industrial production (grew about 20%)
  • employment levels
  • profits
  • wages
157
Q

what stopped in winter of 1920-21?

A

economic progress

158
Q

what happened to unemployment in 1920-21?

A

more than doubled

159
Q

what was there an urgent need for during war?

A

B’s staple industries products

160
Q

demand for what declined dramatically towards end of war?

A

products from staples

161
Q

what expanded by 50% during war?

A

B’s capacity to produce steel

162
Q

by 1921, what was clear had been done in steel indsutry?

A

substantial over-investment

163
Q

B had how many tons of shipping during war to cope with demands of continual losses to G u-boats?

A

2 mil

164
Q

after 1918, how many tons needed to be produced a year?

A

0.5 mil tons

165
Q

by 1918, what countries had producing more and were supplying wolrd markets?

A

Poland and Germany

166
Q

2 rival energy sources that affected coal industry

A
  • oil

- electricity

167
Q

what had been lost during war to Japanese, India and US?

A

overseas markets

168
Q

what lowered demand?

A

restrictions on trade

169
Q

what affected staples the most?

A
  • tougher foreign competition

- restrictions on trade

170
Q

what impact did decline of staples have on workers?

A

massive lay-offs of workers

171
Q

define structural unemployment

A

unemployment resulting from changes in make up of economy

172
Q

T/F before war, B already imported greater value of goods than it exported

A

TRUE

173
Q

how did B make up for greater levels of value of goods than it exported?

A
  • selling services

- income from overseas investment

174
Q

T/F B had an unfavourable trade balance before war

A

FALSE

175
Q

define trade balance

A

balance between imports and exports

176
Q

during war, what did B gov and other investors do to many overseas investments?

A

sold them off

177
Q

what did B have to pay from loans?

A

interest

178
Q

after war 1919-20, what was there a ST increase in?

A

exports to countries that couldn’t get B goods while war was fought but this didn’t last

179
Q

by 1921-22, what did B have an unfavourable…?

A

trade balance

British History Y1 (6 decks)

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