Impact of Economic Change 1917-1980

Question 1

Which 2 areas of the economy contributed to a post WW1 depression

Answer 1

• Farming
• Industry

Question 2

Why did the farming sector suffer after the end of WW1

Answer 2

During the war, farmers were subsidised to grow wheat, but wheat demand fell after the war, making wheat overproduced, dropping prices for wheat farmers bankrupting many

Question 3

Why did industry suffer after the end of WW1

Answer 3

• Post-war strikes across 1919-1920 led to business failure and therefore unemployment
• Many older industries like coal lost demand
• Demand for extra goods during WW1 reduced after the war

Question 4

How did the government response to the post-WW1 depression improve or worsen the recession

Answer 4

They had a laissez-faire attitude so did nothing to intervene during the depression, not helping many people who were struggling. Their isolationist ideas also meant there were more tariffs which reduced American exports so businesses suffered too.

Despite this, the economy eventually adjusted and corrected itself

Question 5

How did the government response to the post-WW1 depression influence government thinking at the start of the Great Depression

Answer 5

They believed a Laissez-Faire attitude would work for the Great Depression which severely backfired

Question 6

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