Labour Party And Financial Crisis

Question 1

why did the financial crisis in The 1930s cause split between a labour party

Answer 1

Party divided on how to deal with the economic crisis Philip Snowden (chancellor of the exchequer) attempted to balance the budget + maintain gold standard, however balancing the budget in such little time would involve public spending cuts which would mean reducing expenditure on welfare
Oswald Mosley proposed expansionary government spending policy financing public works schemes and social reforms through government loans (putting work into men’s needs first)

Question 2

McDonald’s view on how to deal with the economic crisis

Answer 2

Was not convinced Mosleys idea would work McDonald was fearful that such radical measures would undermine confidence in the British economy always says therefore creating more unemployment

Question 3

Extreme left-wing Socialist use and how to deal with the depression

Answer 3

Capitalism was collapsing girls should not try to save it but use a collapse to create a socialist economy and society by taking straight state control and ownership of its main industries (banks and services)

Question 4

Oswald Mosley’s view on how to tackle the economic depression

Answer 4

Government should borrow money and spend more on roads schools hospitals and services

This would give unemployment jobs and spending power to the community better facilities at low-cost tariffs to protect jobs should be introduced and pensions and benefits increase to boost consumer spending

Question 5

So it’s not interview on how to deal with the economic depression

Answer 5

Policies such as the free trade pounds budget and the gold standard maintain the confidence of international bankers and traders in Britain back at in government spending to prevent exceeding income into the value of the pound based on gold

Question 6

The maycommittee

Answer 6

Committee proposed by the government to work out how to curb the expenditure and to restore confidence in the banks and people

Question 7

The fall of labour and rise of the national government 1931

Answer 7

May committee report cause an outcry from many Labour party members and trade Eunice this out the government should increase my neighbour taxing the rich more heavily rather than cutting funds to the poorest people Samosa believed if capitals and clapped it would be a good thing and make way for socialism. This led to a huge divide within the cabinet therefore leading to the collapse of the labour government

Question 8

How McDonald tackled unemployment

Answer 8

McDonald had very little idea to have cycled in piemen

In 1930 he set up an economic advisory council and industrialists and economist to provide advice, but here men wary of new ideas

Martin employment and more unemployment benefits to be paid out on this for greater strain on government finances