Section 1: Chapter 2 Flashcards
Outline the economic and social situation of Britain in 1906
- most British workers employed in industry
- employment increasing for men and women in industries such as transport, education etc
-new industries established = electricity, chemicals, shipbuilding + motor cars - however, there was concerns Britain was not adapting fast enough
Outline the position of the ‘staple’ industries in 1913
- textiles, steel, coal and shipbuilding
- 60% exports came from these in 1913
- however, there were concerns Britains dominant position was being eroded by Germany and America
What evidence was there in 1913-14 that Britain still held the dominant position for the staple industries
- Britain owned half the world shipping before 1914
- despite competition from Germany + USA, iron and steel output continued to increase
- coal industry highly profitable - 287 million tonnes of coal being mined in 1913
Outline the ‘new industries’ emerging
- expanded faster than the economy as a whole
- new industries had a growth rate of 3.8% compared with an overall manufacturing growth rate of 2%
Outline the position of agriculture
- farming accounted for around 10% of employment, national income + national investment from 1906-14
- ## most British land was in large estates but most was let out to tenant farmers who in turn employed agricultural labourers
What effect did the period of agricultural depression have in the final decades of the 19th century
- meant farmers had to start changing their focus of production by 1914
- this was partly because of competition abroad for cheap grain
- they moved from wheat growing to other areas such as dairy farming and beef cattle
Outline Britain’s trading position at the start of the 20th century
- very strong - 1914 - 30% of goods and services produced in Britain were sold abroad
- Britain still had 25% of the worlds trade (although this was down from 40% in 1870)
Outline invisible exports
- vital to britains economy
- Britain was the worlds leader in banking, investment and insurance
- London remained commercial centre of the world
- Britain’s earnings from ‘invisible exports’ helped ensure Britain maintained a healthy balance of payments
Outline the position of britains trade in 1913 specifically
- around 32% of Britains total national wealth was in overseas investments
- around 40% of Britains investments went to the empire and USA and South America
What was the ‘late Victorian recession’
- between 1870-1914
- a period when Britain was overtaken by Germany and the USA in iron and steel output
- imports also grew faster than exports leading to a ‘trade gap’
What impact did the ‘late Victorian recession have’
- many worried that the former ‘workshop of the world’ now imported manufactured goods
- caused many politicians to raise questions on the standards of Britains education, the policy of free trade and the failures of industry to adapt quickly enough
What were the 6 ‘key areas of concern regarding the British economy’
- lack of research +investment in new tech
- lack of progress in new industries
- a ‘low wage economy’
- issue of free trade
- shortcomings in education and training
- problems in agriculture
Outline ‘lack of research +investment in new tech’ as an area of concern regarding the British economy
- staple industries were so established in Britain, so factory equipment was less modern but would be expensive to change
- only 8% of coal mechanically cut in Britain by 1914 compared to 25% in America in 1900
- foreign observer - British steel industry characterised by ‘pessimism + lack of courage’
- in the car industry, firms had failed to develop organisation skill needed for mass production
Outline ‘lack of progress in new industries’ as an area of concern regarding the British economy
- German chemical industry was double the size of Britains by 1913
- 1913 - 90% of the artificial Dyes used in Britain were imported
- also, many companies producing electrical equipment in Britain were subsidiaries of German/American companies
Outline ‘a ‘low wage economy’ as an area of concern regarding the British economy
- Americans had introduced a ‘high wage economy’ where workers were paid enough to buy the goods they produced
- this ensured high demand and encouraged production
- Britain had not implemented this system + operated off a low wags economy so domestic market was small
Outline ‘a ‘issue of free trade’ as an area of concern regarding the British economy
- Germany and USA used tariffs to keep their domestic markets free from competition
- the liberal policy of free trade meant foreign traders had easy access to British markets and Britain couldn’t bargain with other countries to reduce their tariffs
Outline ‘shortcomings in education and training ’ as an area of concern regarding the British economy
- concern over Britains economic decline led to fear that workers were not learning sufficient skills in school
- Britain was statistically behind Germany in science teaching and both schools and universities
- an average 1000 graduate engineers in Germany compared to 400 in Britain
Outline ‘problems in agriculture ’ as an area of concern regarding the British economy
- railways meant grain from North America prairies was sold more cheaply than many British farmers could produce it
- only 1/4 of wheat sold in Britain came from British farms just before ww1
Outline some positive aspects of the British economy 1906-14
- staple industries still profitable + in some areas, increasing production
- London remained commercial centre of the world + dominance was unchallenged
- cheaper imports of cereal meant cheaper food stocks for livestock farmers
- Britain was by far the worlds largest foreign investor
