post war economic developments Flashcards
How was extra labour made available during the war
the Women’s Land Army, soldiers and even prisoners of war
How much had world trade grown before WW1
grown by 25% per decade between 1830 and 1914
how much did the world trade grow in the 1920s and 1930s
it only grew 8.5% in the 1920s
it fell by 35% between 1929 and 1922
what were the averages of unemployment staple British industries
- 9% in 1929
- 9% in 1932
- 5% in 1936
- 3% in 1938
what is autarky
economic self-sufficiency and independence
what were the main components of British exports % of total output
1910-19 Cotton 25%, Other textiles 15%, Iron and Steel 12%, Coal 10%
1920-29 Cotton 24%, Other textiles 12%, Iron and Steel 12%, Coal 8%
1930-39 Cotton 14%, Other textiles 10%, Iron and Steel 12% and Coal 9%
COTTON, TEXTILES DROPPED
COAL AND IRON AND STEEL STAYED RELATIVELY THE SAME
what was the negative cycle in the staple industries
lack of investment, lack of modernisation, uncompetitive against foreign competition, falling profits
What were coal output and exports between 1913 and 1933
Output - 287 tons in 1913, 208 tons in 1933
Exports - 98 tons in 1913, 57 tons in 1933
what had Britain’s share of the worlds shipping tonnage dropped to in 1929
it was 59% between 1909-1913
45% between 1920 and 1929
what per cent of the world fleet registered in Britain
it was 30% in 1920 down from 41% in 1914.
how many working days were lost in 1921
86 million in 1921
what was the triple alliance
railwaymen, miners and transport workers
how did the mining industry and coal industry lead to the general strike
The mining industry had failed to modernise, conditions were poor and pay varied from mine to mine
The coal industry and other staple industries were in decline and struggling against foreign competition in their export markets
what kept wages low in stable industries
structural unemployment
What was introduced in April 1925
the gold standard
who backed miners and resulted in a general strike being on the cards
the TUC
When was the Samuels Commission published
March 1926
What did the Samuels Commission outline
it suggested that mine owners needed to modernise and that government subsidy should end. In the long term pay should not be cut (but in the short term cuts might be needed) and hours should not be increased
how did the miners and mine owners respond to the Samuels Commission
they declined it
When did the mine owners announce a pay reduction
30 April 1926
When did the miners announce a strike
1 May 1926
When did owners lock the miners out
30 April 1926
What did Lord Birkenhead famously say about the strike
‘It would be possible to say without exaggeration that the miners’ leaders were the stupidest men in England if we had not on frequent occasion to meet the owners.’
How long did the General Strike last
4 - 9 May 1926 (except for the miners, who stayed on strike for the rest of the year before having to back down)
what happened to the TUC after the strike
the TUC made huge losses and union membership fell
What did Baldwin pass in response to the general strike
The Trade Disputes Act 1927. It restricted union power and prevented another general strike. It banned sympathy strikes, allowed the seizure of union funds and reversed the 1913 trades disputes act.
what did the National Debt rise to in 1918
It went from £625 million in 1914 to £7980 million in 1918. It continued to rise until 1939.
What was debt in comparison to GDP
The national debt was always more than 100% of GDP
who pursued a policy of retrenchment
Sir Eric Geddes
who was Sir Eric Geddes
chairman of the committee of national expenditure
what was the Geddes axe
£64 million of cuts that affected the army, navy, education, health services and the building of council houses. This was incredibly unpopular
what did unemployment rise to
It peaked at about 3 million in 1933. Never really dropped below a million
Who returned Britain to the Gold Standard
Winston Churchill
when was Britain return to the Gold Standard
April 1925
what was the pound valued at
the prewar value of $4.86
who said this was ten per cent too high
John Maynard Keynes
what did the overvaluation of the pound cause
British exports became more expensive and uncompetitive, hitting employment and wage rates in the staple industries that were reliant on export markets
what was needed for the gold standard to be maintained
high-interest rates
when was the gold standard abandoned
August 1931
what did the value of the pound fall to
from $4.86 to $3.20
what did the Labour government do after the wall street crash
introduced a small degree of funding for public works (42 million)
what did the Labour government split over
The need for cuts to spending and unemployment benefits
how much was unemployment benefits cut by
10%
what were interest rates cut to
12% to 6% in 1931 and then 2% in 1932
When was the unemployment act and what did it introduce
1934
the administration of benefits, although it did nothing to solve unemployment
When was the special areas act and what did it do
1935
it made £2 million available to relieve structural unemployment. 44,000 workers were encouraged to move and 30,000 men were restrained
What helped the car industry
the use of motor vehicles by the armed forces during the war helped build skills in terms of production, servicing and repairing vehicles
what did employment in the car industry rise to
in 1923 - 120,000 to 250,000 by 1938.
what production methods were adopted
Henry Ford’s production line methods
what cars were produced to be affordable for the masses
the Austin 7 and the morris Cowley
what per cent of cars produced in Britain were sold in Britain
88%
what tariff was introduced in 1915 that was buoyant enough to support the industry
33% tariff
how much did wages increase on average in real terms
33% between 1913 and 1938
