Economy

Question 1

Stanley Baldwin 1924-29

Answer 1

• Baldwin reintroduce Brit to goldstan which may have prolonged recession of the 1920’s
• the gold Stan is where the value of the pound is tied the value of gold
• this results in keeping interest rates high which limits borrowing, which limits indust expansion and stops businesses taking on new workers

Question 2

The geddes axe

Answer 2

In 1921 DLG appoint sir Eric geddes to make public expen. Geddes implemented £87mill of cuts to the 1922-23 budget
Most of it came from mill. Spending but health, welfare and housing was reduced from £205. £8 to £182.1mill

Question 3

Nationalisation 1945-51

Answer 3

The government takes control of industries such as coal, public transport, gas and electricity

Question 4

Austerity 1945-51

Answer 4

Wartime rationing was extended to 1951 to aid the economy, even some which were not rational during the war (potatoes and bread) coal was rational during 1946-47 too. Limits were also places on rent, profits and interest rates

Question 5

Heaths problems

Answer 5

Heaths budget fail to help the economy- Heath is forced to “u turn” and become more involved in the economy. He is seen as a traitor by tortes for betraying the selsdon park programme by 1974 Heath faced 2 miners strikes brought country to a stand still. Forced to declare state f emergency in winter of 1975-74 3 day week

Question 6

Post war boom (1918-20)

Answer 6

• due to limit on consumer spending during the war maj people save
• this is spent in 1919 on luxury items causing short boom
• there was a huge speculative boom as business issue. Shares amount of shares issues rise from £65mill in 1918 to £384mill by 1920
• invest make poor choices buy in brit. Shipyards cotton mills Brit monopoly over these industries had vanished during the war