Economy And Industry, 1874 - 1886 Flashcards
What 2 consequences did the fall in prices have?
1) Smaller profit margins for manufacturers
2) Workers were laid off more frequently
What did the onset of economic depression follow?
A period of outstanding economic growth and prosperity
What do some historians see this period of time as?
A period of adjustment rather than depression
What are the 5 causes of the Great Depression?
1) Overseas competition
2) Tariff barriers
3) Out-dated technology
4) Absence on entrepreneurial drive
5) End of railway boom
How did overseas competition contribute to the depression?
- America and Germany were experiencing a period of rapid industrialisation
- America was rich in natural resources and in manpower from European immigration
- By 1890 America had overtaken Britain in both the production of iron and steel and Germany was not far behind
How did tariff barriers co tribute to the Great Depression?
Germany introduced trade tariffs in 1879, America followed in 1890. Britain had free trade so other countries could import goods into Britain and sell them at a competitive price but Britain could e port goods so cheaply.
How did outdated technology contribute to the great depression?
Because Britain was the first industrial nation it fell behind the latest technology and its machinery was old. There was also a reluctance to invest in new capital.
How did the absence of entrepreneurial drive contribute to the depression?
Third generation syndrome - the factory owners lack drive because they were handed the business on a plate rather than had to work for it. This meant there was a lack of engagement with further development of new industries.
How did the end of the railway boom contribute to the depression?
Building ended by 1875. Demand for iron and steel reduced so led to job losses.
What employment statistics suggest there were actually periods of prosperity during the depression?
Unemployment peaked at 11.4% in 1879. It dropped to 2% during 1882 to 1883 (and rose again to 10% in 1886).
Although falling prices meant lower profit margins and a loss of jobs for some people how could they be seen as a good thing?
Cheaper goods in the shops so working class got more more for their money (as long as they were in a job).
What were the reasons for the depression in agriculture?
- A series of cool wet summers that had negative consequences - crops rotting, shortage of animal feed, outbreaks of disease in livestock.
- Recover was difficult because the mid west prairies of North America opened up:
- a. Rich soil could produce large quantities of wheat
- b. Transport to Britian was easy and cheap because of the railways and development in steam ships - Advances in farm machinery revolutionised process of harvesting especially in America (Britain was not investing at this time - third generation syndrome).
- Development of the canning process meant that beef from Argentina and Uruguay could be exported to Britain easier - at the same time refrigeration was developing, also making exports easier.
- Continuation of free-trade by Disraeli made Britain uncompetitive in the markets - cheaper to buy exports. (Pressure from fair trade league was unsuccessful.)
What emigration statistics show that there was a depression?
Number of agriculture workers fell from 1 million in 1871 to 600,000 in 1900 - because they had left to live ad work in America and Canada. This increased America’s manpower and mad their workforce more effective.
How do changes in British agriculture suggest that it was a period of change rather than a depression?
British farmers had to diversify to survive.
- A. Many farmers moved into dairy farming as milk could not be easily imported.
- B. Poultry became popular.
- C. Market gardening was successful.
