Interwar Period- Econ Flashcards
End of war -coal
Mine oworkers believed that demand for coal would cont post war and profits would be good
Miners had hoped that gov would cont to help cont to help control and hoped for complete nationalisation
Sankey commission
No coal boom
Lack investment new tech- private businesses- old 18th and 19th out by axe- nationalisation may increase- high production costs
Former prewar british markets had started to choose other power sources such as electric and oil
Former customers had gone elsewhere during war for imports
Coal mine owners threatened to decreae min wages
Sankey commission
Industry should be natioonalisised
Lg ignored- look not for workers, for mine owners
Mine owners influential and powerful and wanted to avoid taking control of industry facing serious conflict
Looked siding with tories- esp in coalition
Samuel commission
1926
Royal commission headed by sir samuel recommended small wage cuts, not longer hours
Reccommendations not accpeted by miners or employers
Ty congress threatened a strike of key industry 4 may
Miners strike
1919
2.4 mill on strike
Lancashire
5,000 against price cut
S wales- 7000 men against increased hours
Black friday
1921
Threat of mine owners to impose pay cuts that increase working hours when coal miners were returned to private ownership 1921 mar- miners had to accept new conditions or lose jobs
Called on railwaymen and transport workers to join strike apr 1921- formed triple alliance
But railwaymen and transport workers felt not tried hard enough to negotiate, balck friday although miners cont with a bitter strike they were evnetially forced back after accept wag ecut
Destroyed triple alliance- created in 1914
Econ changes ww1
Need for state intervention
Free market would not be rleied upon to manage econ
Army needed men and munitions
New lkib started to change attitudes prior to war
Munitions ww1
1915 shell scandal- inefficiency- minister of munitions- lg controleld 20,000 munitions factory
250 shel factories built by state
Profits limited and prices kept down
New tech- electricity
Better standards health and safety
Led to nationalisation in other areas- such as pubs in munition producing areas closing early
Fund 2,000 mill to fund expansion production
Railways ww1
Quickly under state control
Highlighted inefficiencies
Not nationalised after war but did lead to structural changes
By 1921, only 4 railway comanies as opposed to 130 at start of war- inefficient to have lots
Shipping in ww1
Gb world leader- producing 60% of worlds ships 1909-13
1917- crisis, 4 mill tonnes of ship was struck by u boats- overcome by convoy system- battleships with emrchant ships, food shortage 1917- 6w still london starved
Lr- britain never recovered to pre waar dominance
Mining in war
Bought under gov control agfter stike in 1915
Price controlls introduced 1917 to ease supply
Coal mines remianed in private hands
Industrial relations remained poor- managers focused on profit
Hand out- no technical innovation
Rations- in ww1
Due to dependancy on imported food, shipping of fod by 1916
Ministery of food set up in 1916, subsidies were given to decrease bread prices, some voluntary practises- propaganda posters
Full rations 1918- can sugar, meat, butter, jam, margernine
Agriculture in ww1
Gov knew had to increase production duet to reliance on imported food
Cultuvation production act 1917 meant farms coul dbe forced to change land use, though rarely used- pasture to araable
Corn production act 1917 gave min price for grain and min wage agricultural labourers
Women land army provided extra labour
Due to tensions in con party, gov aaimed to persuade rather than fofrce
Daylight savings introduced
Gold standard
A monetary system by which paper money is backed by gold in the bank
Sets fixed price gold, buys and sells gold at that price
Why goldstandard introduced
Churchill as chancellor saw that return to gold standard would help econ to its pre war standards- as strong econ in 19th c
How gold standard introduced
Opted pre-war valuation, seen as 10% too high
problems with gold standard
Exports v expensive comp competition
Less borrowing for investment- high interest rates
Hit coal shipping, iron and steel- staple industres
Interest rates-gold standard
Had to be kept high to maintain gold standard
Without foreign money/gold deflation- increased incentive foriegn investment with high interest rates
Discouraged borrowing and preventing innovation in industry
Gold standard- avoid budget deficit
Which would destory confidence of foriegn investors
Gov limit on spending- old age pension and spending cut
1929- wall st crash and depression, unemployment increased benefits
Labour gold standard
1931- left
Banking crissi over
Macdonald abandon gold standard as had ruined econ
Recommended cut unemp by 10%, deficit threeaten another banking crisis
But lab wouldnt- work or maintenance
1931- lab split cabinet 11v9
General strikes date§
4-12 may
general strikes- gov sucess
Seemed to win- tuc called of the strike without achieving their objectives
Baldwin prepared for 9 months- subsidy
Oms- organisation for management of supplies- trained middle class volunteer strike breakers eg uni boys police, set up stores of food and fuel, women cooking
1927- trade disputes act, baned sympathy strike actions- so no repeat
General strike - gov failure
Return to gold standard 1925 major cause- depressed econ, made exports nmore expoensibe, increased unemp of 1920s worse
Tension increase samuel comm- siding with mine owners
State ignited when gov alled off talks with tuc 4 may
Gov striking armed repsonse unpop
Glasgow- fights w police
Army
Lab victory in 1929