National Government Flashcards
Why was the national government created?
During the economic crisis of the early 1930s the labour party were rumoured to be proposing a budget that was going to be unbalanced, this would lead to a panic selling of the pound. In order to prevent this the labour party proposed 10% cuts in unemployment assistance, meaning the budget would not be unbalanced. This caused a split in the labour party and the creation of the national government.
What policies did they implement to allow Britain to recover quickly?
Took Britain off the gold standard. Lowered interest rates meaning more people could buy houses. Rearmament allowed many deprived, industrial towns to recover economically.
What was the biggest extreme political party of the period?
The BUF led by Oswald Mosely. This was a group of extreme fascists who supported ideas of figures such as Hitler and Mussolini.
What did the public order act (1936) do?
Banned groups from wearing uniform and required permission for marches and demonstrations.
How did Britain rearm from 1934?
Increased RAF squadrons, reorganised the British army, expanded royal navy, developed munitions.
What was the abdication crisis?
A “crisis” surrounding Edward the 8th in which he married a divorced American woman, the British public saw this as unacceptable and so he had to abdicated the throne and give it to his brother George the 6th.
Name the four national government leaders and the periods which they led it.
Ramsay Macdonald 1931-35, Stanley Baldwin 1935-37, Neville chamberlain 1937-40, Winston Churchill 1940-45.
What did the 1934 special areas act do?
It identified Tyneside, South Wales, West Cumberland and Scotland as regions that required direct investment however this investment was too little too late.
What happened to real incomes between 1932-37?
Rose by 19%
What happened to GNP between 1932-37
Rose by 23%
What happened to unemployment rates between 1932-37?
Fell from 17 to 8.5%
What did economic growth average between 1934-37?
4% a year.
What did the move away from the gold standard allow for?
A cut in interest rates. A degree of inflation. Banks became more willing to spend. Less of a cost of war debts.
What specific ministries were created for the war government?
Ministry of aircraft production, ministry of supply, ministry of war production, ministry of food, ministry of labour and national service.
What was the difference between British wartime and peacetime economies?
In peace production was determined by prices for goods and profits. During wartime production levels were decided by government.
