The depression - 1931-39 Flashcards
What industries were most affected by the depression and where was unemployment highest/lowest?
coal, iron, steel, cotton and shipbuilding
60% of shipbuilders were unemployed by 1932
unemployment was highest in the north and east of England and in Scotland and Wales
new light industries did better, e.g. in London
What were the Government responses to unemployment?
spending cuts due to huge debt
‘means test’ - 1931, 270,000 failed in the first 10 weeks
Special Areas Act (1934) - £2 million was put into Tyneside, Scotland, Cumberland and Wales as an attempt to generate jobs
Special Areas Act (1937) - low tax and rent for businesses that moved into the areas
What benefits did the Government offer?
National Insurance Benefit (1911) - Government helped people who worked in industries that were not steady
1930 Unemployment Insurance Act - more people could claim benefits, but they had to prove they were actively ‘seeking work’.
What was Jarrow like in the 1930s and what did the NSS do?
unemployment was at 64% by 1935
malnutrition was widespread across the town
shipyard owners set up the National Shipyard Securities ltd in 1930 to make shipbuilding more efficient
in 1934, the NSS closed Palmer’s Shipyard, Jarrow’s main employer because it was too small to make the ships that were being built at that time
What was the Jarrow Crusade and what were the impacts?
in 1936, Jarrow sent 200 workers on a march to London with a petition to ask for work
marchers got a lot of support, but also criticism
improved the image of hunger marches, as previously there was clashes with the police
the petition did little to move the Government into action
Why was the means test unpopular?
it was intrusive and people had their possessions checked
families were forced to sell their possessions to receive benefits
people’s relatives had to move because many people living in the same house reduces benefits
Why was the Special Areas Act not effective?
£8.4 million spent but only 121 new firms were made
employed 14,000 which didn’t affect unemployment rates significantly
