economy 1873-1914 Flashcards
evidence to suggest there was a depression-domestic evidence
victorians largely felt there was a depression
there was an agricultural depression-wet summer and poor harvest in 1873 signalled the end of the golden age in British farming and agriculture
the methods and technologies used to give Britain the lead in the industrial revolution were still being used and they were outdated and obsolete by the 1870s and 80s- particularly in coal and textiles
there was little investment in new machinery only in typewriters and sewing machines
falling prices benefitted consumers at first but the lower profits lead to a decrease in investment and subsequently the laying off of workers
the decline in agriculture and cotton made it feel like there was a depression due to its prominence in peoples minds
end of railway boom decline in demand for coal and steel and iron
evidence to suggest there wasn’t a depression-domestic evidence
the economy grew 1,3% during this period
the difference between feeling of depression and there actually being a depression are completely different things all indicators suggest the economy grew throughout this period
new industries such as retail, telephone, bicycle, electrical engineering snd chemical industries introduced and developed
prominence of cotton and agriculture gave tens of depression but other sectors weren’t affected to the extent of depression
some farmers diversified and were successful in air poultry and market gardening
decreased prices led to boost in consumer spending and cadburys levers and fry became household names
evidence to suggest there was a depression-foreign
America’s and Germany’s had increased by 4.8% and 3.9% respectively
the opening up of prairies in Canada and the USA flooded the world with cheap imports and British farmers found it hard to compete following the repeal of the corn laws in 1846. British corn grown fell by 1/3 from 1871-1891. impact of foreign completion had been delayed due to the crimean war and American Civil war
America and Germany had overtaken British steel production in this period
America and Germany had greater natural resources and begun to overtake Britain. competition was fierce in iron coal and steel
Britain remained largely a free-trade nation and maintained their policy of laissez-faire so it was difficult to compete with nations like America who had adopted protective tariffs
British manufacturing was more expensive than Germany and the USA, so they were flooded with cheap imports. increase in imports from 1870s onwards
evidence to suggest there wasn’t a depression-foreign
the difference between relative and absolute decline is vital- there was no absolute decline but Germany and the USA seemed to be doing much better. McColskey argues that Britain did as well as could be expected given limited natural resources and size
