The coming of the Depression

Question 1

THE COMING OF THE DEPRESSION
can you describe the two main reasons for the depression in britain?

Answer 1

1. the decline of traditional industries - british economy relied on the money made by exporting materials such as coal, iron and textiles to other countries.
2. the impact of the wall street crash - the american stock market collapsed and so they recalled all loans, causing a depression in britain

Question 2

THE COMING OF THE DEPRESSION
can you describe the 3 reasons for the decline of traditional industries?

Answer 2

1. competition from abroad - traditional industries depended on selling to countries abroad but foreign competitors such as the US were able to produce goods much cheaper and so countries were no longer buying from britian
2. new markets - it was difficult to find new markets as british goods were more expensive
3. obselete methods - britian was using old-fashioned and ineffective methods meaning their goods took longer to produce and would cost more. At the same time, the USA was using mass production.

Question 3

THE COMING OF THE DEPRESSION
how did obselete methods, new markets and competition from abroad affect the coal industry, the iron & steel industry and the shipbuilding industry?

Answer 3

coal industry
british coal was more expensive because it was harder to mine, as the mines had not invested in up to date machinery.

iron & steel
declined because there was less demand for ships and weapons after WW1. Also, the steel plants of USA and Japan were larger and more efficient and modern

shipbuilding
declined more rapidly

Question 4

THE COMING OF THE DEPRESSION
how did the wall street crash impact britain economically?

Answer 4

• international trade declined
• between 1929 and 1931, exports from britain fell by half
• between 1929 and 1932, ship production declined by 90%
• there was a rapid growth in unemployment. In 1930 there were 1 million unemployed and by 1932 there were over 3 million

Question 5

THE COMING OF THE DEPRESSION
what were the two main reasons for the depression in britain?

Answer 5

1. the decline of traditional industries
2. the impact of the wall street crash

Question 6

THE COMING OF THE DEPRESSION
what are some examples of traditional industries in britain?

Answer 6

coal, iron, textiles and ship-builiding

Question 7

THE COMING OF THE DEPRESSION
what were the three reasons for the decline in traditional industries?

Answer 7

1. competition from abroad
2. new markets
3. obsolete methods

Question 8

THE COMING OF THE DEPRESSION
between 1929 and 1932, ship production had fallen by what percentage?

Answer 8

90%

Question 9

THE COMING OF THE DEPRESSION
what were the unemployment rates in 1930 and then in 1932?

Answer 9

1930 - 1 million
1932 - over 3 million