Tackling The Problems Of The Depression Flashcards
What was meant by the ‘long term unemployed’?
Those who had been unemployed for more than 6 months who had used up their dole.
What was achieved by the 1934 Unemployment Act?
> the UABs were set up to investigate means testing
> the unemployment benefit was set nationally
> the dole was separated from the insurance benefits
> the 10% cut was reversed
By 1936 what were the roles of the UABs?
> they were made responsible for dealing with workers who had used up their insurance benefit
> they took over some of the roles of the Labour Exchange
> they were less severe than the PAC
> they provided training schemes and help for workers migrating in search of work.
What legislation did the government pass in 1934 to help the problem of long term unemployment?
> the unemployment act of 1934
- set up the UABs to oversee the means test.
Describe the special areas act.
Passed in 1934, it aimed to attract light industry to areas identified as having ‘ special employment requirements’
- Tyneside, South Wales, west Cumberland and Scotland
How effective was the special areas act?
> by 1938 8400000 has been spent with only 121 firms relocating and only 14,900 jobs created
> unemployment figures had decreased in some of the areas, and the government used this to support the act
- real reason was that many had migrated.
What was ‘new Britain’?
> businessmen found it easier to build factories in the prospering areas because of :
- good rail links,
- new roads and
- a large population for the workforce.
> development of electricity meant that consumer goods companies could build factories near their customers with skilled workforce nearby
Why was the special areas act ineffective?
> there were too many unemployed
> to hire people cost training programmes which the government was not willing to pay for
> the industries required small factories
What were the main measures taken by the government in the 1930s to tackle the depression? (8)
> public spending cuts
> leaving gold standard
> income tax increased
> means test
> import duties act
> Ottawa agreement
> amalgamation
> special areas act
What did the dropping of the gold standard mean?
> value of the pound declined
> exports became cheaper and imports more expensive
> companies could sell abroad for higher profits
What was the import duties act?
> set up to try to prevent another crisis
> put 10-20% tax on foreign imports to encourage British to ‘buy british’
> did not benefit older industries
foreign countries retaliated by putting high tariffs on british exports, meaning the export market suffered
