The Baldwin Government and the British Economy in the mid 1920’s

Question 1

Stanley Baldwin’s Conservative Government 1924-29

Answer 1

economic= better society and geo-political= empire and the return to the international position pre-war. Wanted to rewind the clock and make Britain the epicentre of global economics.
- abandoned tariff reform

Question 2

Winston Churchill, Chancellor of the Exchequer

Answer 2

• In 1925 the pound was put back on the gold standard- Churchill decided to peg the pound at the same level as the dollar- putting the pound at an artificially high level.
• > Keynes ‘the re-establishment of the pound on the gold standard means that the pound is to be kept at an artificially high level. IT IS VALUED AT LEAST 10% ABOVE WHERE IT SHOULD BE. In truth, the gold standard is a barbarous relic’

Question 3

The British Economy in the mid 1920’s after WW1

Answer 3

• Ferguson argues that the impact of WW1 on the British economy was profound. After the war Britain lurched from low growth, to stagnation to outright recession.
• Barnett argues that WW1 undermined the economy but it also presented the British government with the option for reform.

Question 4

Underlying problems of The Baldwin Government and the British Economy in the mid 1920’s

Answer 4

• Britain had been the first nation to industrialise-‘first wave of industrialisation’ =precedence syndrome-
• Britain went first and went wrong so other countries adapted and made theirs better.
• The first wave was centered on textiles, iron, steel and coal- whole sectors grew around these core industries and economic health was dependent on them.
• Germany and USA led ‘second wave’ based on light industries and petro-chemicals.
• In 1925 nearly half of GB total output came from core industries.
• 1in 4 adults worked in core industries
• ¾ exports in 1914 from core industries

Question 5

The invisibles of trade-

Answer 5

Britain provided nearly half of all overseas global investments in 1914.

• 1/3 GDP was generated by the financial markets.
• During war the world’s financial markets moved from London to New York.

Question 6

Britain’s trade market in the 1920’s

Answer 6

• 15% drop in British exports to the continent from 1919-1925 so replaced by other markets.
• the USA by 1925 had replaced the UK as South Americas main trading partners.
• By 1925 USA was industries 2nd largest trading partner.
• Britain’s hold in world export trade dropped from 18% in 1914 to 11% by 1925
• British unemployment remain 10-15% in 1920’s.

Question 7

The Clyde Shipyards

Answer 7

from 1919-25 around 6000 people were laid off from the shipyards.

Question 8

Northumberland Coal Fields

Answer 8

1919 223,000 coal miners in the region, in 1923 170,000 were in Durhum this began to drop and the region suffered 20% unemployment.

Question 9

Red Friday

Answer 9

31st July 1925. Threat of strike from the Miner’s federation. Baldwin was able to head off the strike by appointing Herbert Samuel to lead a commission into the affair.