National Government

Question 1

How had economic problems from the 20s worsened?

Answer 1

Decline of staple industries
Demand for exports fell by a third
Unemployment rose e.g. June 1932 to 47% of steel workers unemployed
Depression caused many problems

Question 2

Make up of national government

Answer 2

473 Conservatives
68 liberals
13 X labour
Baldwin and McDonald in charge

Question 3

Reasons for economic recovery

Answer 3

Increase consumerism

New production methods (quickly)

Question 4

Gold standard (success)

Answer 4

Abandoning GS allowed exports to become cheaper-sold more exports to Empire

Question 5

Import duties act (successes)

Answer 5

1932
Impose tariffs to protect British industry and agriculture
similar benefits to gold standard

Question 6

Interest rates (successes)

Answer 6

Lowered interest rate to 2%
1932 cheap money available to borrow
This meant industries could easily borrow money to modernise
Consumers could borrow for mortgages
Housebuilding boom 2 million built

Question 7

Gold standard (failures)

Answer 7

USA and Germany no longer bought from Britain

Other countries came off as well therefore it had less impact for Britain

Question 8

Houses (failures)

Answer 8

Built mainly for middle classes who took advantage of low prices
Only 700,000 council houses built from 1931 to 40

Question 9

Unemployment

Answer 9

Remained high for examples Jarrow Crusade

Question 10

Other failures

Answer 10

Government failed to solve long-term problems

Question 11

Depression (other factors)

Answer 11

How to lower prices which stayed low therefore wages stretch further and real wages increased

Question 12

Production methods (other factors)

Answer 12

Assembly lines and electric power meant the goods were sold cheaply

Question 13

Consumption (other factors)

Answer 13

Late 20s 30,000 to 35,000 fish and chip shop built

By 1930s milk consumption rose by 55%

Question 14

Special areas act

Answer 14

Provided government aid to most depressed areas
Help some areas like West Cumberland
Only spent £2 million and only helped most depressed areas not even Jarrow
Preferred unemployed to move instead
Created jobs on a smaller scale than USA and Germany

Question 15

Formation

Answer 15

McDonald’s visited the king to resign

King spoke to other party leaders and Stanley Baldwin they agreed to keep Mac D as PM leading national government

Question 16

Unemployment problems 1930s

Answer 16

1934 -
Merthyr Tydfil in South Wales 62% male unemployment
Maryport in Cumberland over 50%
Jarrow in North East 70%

Question 17

Jarrow crusade

Answer 17

October 1936 - 200 unemployed men marched to London to petition parliament in the hope of gov intervention to save the town
Public sympathy

Question 18

Causes of Jarrow crusade

Answer 18

Palmer’s shipyard last large employer in Jarrow
Closed in 1935
Unemployment rose to 77% of workforce
Attempts to set up steel works failed due to lack of gov support

Question 19

How did the government respond to Jarrow?

Answer 19

Stanley Baldwin refused to meet workers
Crusade brought little immediate benefit
Some workers returned and found their unemployment benefit had been stopped for not being available