Responding To Economic Challenges Flashcards
Why was Britain economically hurt by the First World War
- lasted longer than govt thought
- Britain was in substantial debt to America
- U-Boats cut sank 40% if Merchant shipping and exports were one-fifth of its wealth
- Industry had been forced To war production
- three-quarters of a million men dead
- Total cost £3.25 billion
The state of the economy after WW1
Decline in exports meant that the country had a negative balance of payments
The debts Britain incurred was 136% its output
By 1920 total debt £8 billion
Unemployment high especially in places of heavy industry in some places in Wales unemployment was over 80%
The Geddes Axe
He recommendeds £87 million of cuts in the 1922-23 budget
Most came from military.
Housing budget reduced from £205.8 million in 1920-21 to £182.1 million in 1922-23
The Depression 1929-34
October 1929 the USA stock market crashed.
Global trade contracted by 66% over the next five years Britain’s exports declined by 50% . They were worth one-third of GNP .unemployment which was 1 million 1929 went up to 2.5 million in 1930
1931 British economy shrunk by 5%
The Recovery 1934-39
On average between 1932-37
Real incomes increased by 19%
Industrial production rose by 46%
GNP rose by 23%
Exports increased by 28%
Unemployment fell from 17% to 8.5 %
Post WW2 1945-51
£4 billion debt with USA
Repayment cost £70 million a DAY
What industry’s were nationalised ? When where they nationalised?
- Coal Industry Nationalion Act. 1946
- Bank of England Act 1946
- Transport Act 1947
- The Electricity Act 1947
- Gas Act 1948
- Iron and Steel Act 1949
What is NEDDY and NICKY?
National Development Council and Office (NEEDY) instituten where employers and unions could discuss things and co-operate .Didnt have any legal control.
NICKY ( National Incomes Commissions) this was an advisory body with Economists and and industry experts
Heath and the economy 1970-74
CUTS CUTS CUTS
- cuts to subsidies to council houses
- cuts for free milk
- raising charges on prescriptions
- cut over £330 million
Problems
- mounting inflation slowed economic boom
- unemployment at 6%
