Why did Britain face economic problems after WW1 Flashcards
The rise of trade unions
increased membership meant more frequent strikes so businesses and industry suffered as they couldn’t give higher wages. The cycle continued an things got worse.
Deaths from the war
900,000 died at war. This meant a massive reduction in readily available workers / the work force.
Wartime debt.
The wartime debt was 160% of the GDP by 1924.
The Great Depression on Unemployment and trade
Unemployment rose to 3 million in 1932 and British exports fell by 50%
When did Britain first leave the Gold standard and why.
Britain first left the Gold Standard in 1914 in order to print enough money to pay for the war. This led to massive inflation
Why was it a mistake for Britain to return to the Gold standard in 1925.
Winston Churchill returning to the Gold Standard in ,25 reset the value of the pound back to $4.86 but made the pound less attractive for foreign business compared to the American dollar so countries don’t buy British.
What bad economic decision took place in 1922
The Geddes Axe 1922 was a series of cuts in public spending for services such as schools, originally believed to come out at £52 million but in reality it amounted to a lot more. This made DLG’s coalition seem incompetent.
What were the consequences of The Geddes Axe
People’s wages had to go down and they had to work longer hours and many had to be laid off. As a result strikes were frequent and the economy suffered as a whole.
How did a protectionism policy negatively impact the economy.
Tariffs on goods meant that trade as a whole between countries was difficult. British exports fell by 50%. Other countries like america had large tariffs in place as well which meant they couldn’t trade with Britain.
How did the General Strike 1926 effect things.
People from all different industries across the country went on strike for miners. 162.23 million working days were lost. Industry came to a stand still.
How did Traditional industries being predominantly in the north affect the economy.
Traditional industries were reluctant to modernise and areas of the north dependant on them were poverty stricken. By 1933 unemployment had rose to 60% in shipbuilding and 49% in iron.
How did the depression affect Trade Union membership
Mass unemployment led to a 50% drop in TU membership from 8 million in 1922 to 4.5 million in 1932.
By how much did inflation rise in 1918
25%
