the coming of the depression Flashcards
examples of heavy industry
coal
iron steel
shipbuilding
why was britain affected by the wall street crash
president hoover used high tarrifs to stop american consumers from buying other nations goods
therefore a decline in profit and demand
phrase that means what happens in america affects the rest of the world
when america sneezes the rest of the world get a cold
what did the wall street crash serve as
a catalyst which speeded hi the impacts of all the other causes and also speeded up the economic deterioration
competition from abroad
us steel
indian cotton
became more popular than the uk
losing these crucial markets lead to unemployment
obsolete methods
industries were using outdated labour intensive practices when producing
USA 65p per tonne of coal
UK £1.56 per tonne of coal
demand decreased therefore industries shut
worker laid off
unemployment
15% of population unemployed 1932
therefore people couldn’t afford to buy from industries and businesses
leading to a further decrease in demand so businesses went bankrupt and a greater unemployment
savings
those who were still employed became extremely careful with spending and investing due to the state of the economy causing
business to further struggle
government response
due to the increase in employment, the government was faced with increased expenditure on benefits
they raised income tax and cut unemployment pay by 10%
Introduced the means test
therefore people had less money and the depression became worse
The means test
a financial assessment on whether the family or individual have the means to live without help from the gov
it determines if someone is eligible for benefits, assistance or welfare.
import duties act
1932
designed to protect British industry tariffs were meant to help British industries as they would make the UK go more expensive and so ideally people and companies would just buy UK goods instead
