Post-war boom, crisis and recovery 1918-39

Question 1

Recession

Answer 1

By 1921 2 million workers unemployed - old industry suffered.

Question 2

Traditional industry

Answer 2

Markets lost during WW1 - other countries e.g. India overtook.
New competitors emerged - USA, Japan etc more cost-effective.

Question 3

The Geddes Axe

Answer 3

1921 DLG appointed Sir Eric Geddes to implement public spending cuts - recommended £87million from military, health.

Question 4

The return to the Gold Standard

Answer 4

Winston Churchill returned Britain to the Gold Standard in 1924.
Overvalued by 10% - British exports too expensive, ended 1931.

Question 5

The May Report 1931

Answer 5

Deficit as high as £120million - proposed cuts in salaries.
Under NG - reduction in income led to reduction in consumption.

Question 6

Careful reform

Answer 6

Special Areas Act - economy would eventually right itself.
Some prosperity returning by 1934 - South East, Midlands.
Regional depression - old industries suffered the most.