The Depression in Britain Flashcards
What caused the depression?
The Wall Street Crash in America in October 1929 led to worldwide economic depression, Britain was effected as traded decreased and traditional industries like coal iron, steel, cotton and ship building were badly affected.
How did unemployment differ in different areas of Britain?
In 1931 the national unemployment rate was 23% however in some areas like the North East and Wales it was as high as 60% whilst in oxford it was less than 6%.
What did the government do to deal with unemployment?
- Public sector workers had their pay cut by 10% to reduce government spending.
- Income tax raised to help pay for the increased cost of unemployment benefit
- Unemployment benefit was cut by 10% in 1931 because there was too high of a demand for it
What was the means test?
It was introduced in 1931 for people who wanted to claim unemployment benefit. They had to reveal what everyone in their house, including grown up children, had in their savings and earnings. They even looked at the value of things in the house that could be sold to raise money.
In some situations redundant ment were dependent on their daughters or wives- which did not fit in to moral at the time. It was humiliating and unpopular.
What was the special areas act?
the special areas act of 1934 and 1937 gave money to regenerate the worst hit areas but many companies in the newer industries were reluctant to move to the special areas.
What effect did unemployment have?
It was devastating for the worst hit areas; shops closed down; levels of poverty rose; the health of unemployed and their families suffered.
What impact did it have on other industries?
growth in electricity, demand for plastics and the chemical industry, the motor industry
however new industries relied on new methods of production and technology so required less workers.
