History (Britain in 1918 and the fall of Lloyd George Flashcards
Economic damage: some facts?
-By 1918 total gopverment expenditure was 50% of GNP
- overseas markets lost/
-overinvestment in staple industries like steel- weren’t required for peacetime
short -term post-war boom led to inflation>raising interest rates led to depression
-USA debts due to investment in Russia industry (paid them to keep eastern fornt open) and Levin refused to pay Tsar’s debts
British empire had spent more than other countires
Social change
actually broke down class divisions- fewer domestic servants, more women in work
infant mortality rate decreased dramatically/maternity crae impoved
industrial canteens built
introduction of British summer time and public houses closed in afternoon provison of school meals
Political Developments?
- prompted suffrage bill - Represntation of People Act (1918)
- government intervention in people’s lives- laissez-faire gone
- normalised government spending- people okay with it to be spent on social reform
- labour replaced Conservatives as main opposition
Human suffering in war?
745,000 men killed
3.5 million orphans and widows-collected pension
flu epidemic- 150,000 more killed
women in population rose
Why couldn’t Lloyd George build a ‘home fit for heroes’ that he promised?
economic crisis post-war- april 1921- trade hit a slump
Ireland situation- priority
Conservatvie majority in coaltion 0 that could say no but he responsibility would be on Lloyd George
Why was there an immediate post-war boom?
Straight after thre was fierce trade as countries treid to reusme their pre-war trade levels
Why wasn’t Britain able to trade with other countries?
Their goods were uncompetitive:
1) British pound lost half its buying power- imported goods were more expensive in Britain
2) Lloyd George raised interest rates to stop inflation- had to borrow money>lost their buying power
3) out-dated machinery- didn’t meet 20th century demands
unsold good>reduction in exports>…?
workers being laid off>more unemployment
what was the debt from Britain?
£7,000 million
Britain found itself in a vicious..?
cycle (trying to steel expensive exports)
Why did some see a problem with Lloyd George spending so much money on reform?
It would result in higher taxes>increased inflation>reduce worth of £ even more
Why did some believe (Maynard Keynes) though that spending would help?
thought more spending>increases internal demand>more jobs>reduce unemployment> people have more money
what did the Geddes Axe Committee do?
unpopular- cut it in important areas: ecucation, healthcare, building of council houses
created an atmosphere of doom/depression
£64 million- 46.5 form armed forces/18.2 from education
What happened with the Addison’s Hosuing Act?
built over 200,000 houses
800,000 houses still needed
Money was wasted paying inflated prices for houses (due to inflation) > Geddes Axe cut it
Unemplyment Insurance act extended to 12 million extra people but..?
they hadn’t made enough contributions by the time of the economic crisis>governemtn couldn’t afford for them to remain ineligable>had to pay them>not self-sifficent(hgihly exensive)
means test-prove they wer egenienuly seeking work
