Exam Cards - National Governments Flashcards
Which problems did the National Government inherit?
- Economic burden
- Wall Street Crash (Oct 1929)
- Unemployment
- Declining Staple industries - lack of investment and lack of trade
- North-South divide
Which Prime Minister formed the National Government, and when?
Ramsey MacDonald - 24 Aug 1931.
Who was the Prime Minister of the Second National Government?
Stanley Bald-Bald.
Who was the Prime Minister of the Third National Government?
Neville Chamberlain.
What was the North’s situation in the North-South divide?
The WSC affected exports from industries in the North such as shipbuilding, coal and textiles. This led to mass unemployment.
What was the South’s situation in the North-South divide?
New industries such as electrical and car manufacturing in the South benefitted from the increase in disposable income. Unemployment levels were as low as 4%.
What did the Government do in 1931 to help the economy in regards to currency?
Removed the Gold Standard.
What did the Government lower interest rate to?
2%.
Which three acts did the Government put in place to aid industrial productivity, and what affect did this have on employment?
- Shipping Assistance Act
- Iron and Steel Act
- Cotton Re-organisation Act
These reorganisations led to more unemployment, but greater productivity.
Why might the National Governments be considered successful?
- Unemployment gradually decreased
- Trade picked up
- Inflation remained relatively low
- Standards of living rose
What some external factors which may have helped with economic recovery?
- Orthodox approaches were used to deal with trade cycle and market problems
- New industries emerged ‘naturally’ without government intervention to create wealth
- Rearmament, an eventual necessity, created work
