3. Britain in 1918
ā¢ Victorious in World War one (1914-18) but at a heavy cost
ā¢ 750,000 soldiers killed, more wounded
ā¢ The War had increased government debt by a factor of ten, leading to
increased taxation and borrowing
ā¢ Inflation doubled ā ordinary peopleās purchasing power decreased
ā¢ Result: Britain enters a depression with much social unrest
ā¢ Consequence: Britain was unwilling to be generous to Germany at
the end of World War One (Versailles Treaty)
4. The decline of British Industry
ā¢ Shipbuilding ā surplus of ships after WW One
ā¢ Cotton ā supply disruption caused by war meant that markets
sourced alternative suppliers
ā¢ Coal mining ā impacted by decline in ships and inefficient methods
ā¢ These industries were concentrated in certain areas (such as Belfast)
which meant some areas were particularly badly hit ā impact of
depression was unevenly felt
5. The Government Response
ā¢ Priority ā pay down debt. Result ā less money for public spending
ā¢ Actions:
ā¢ Fix the value of Sterling to the Gold Standard ā this was an attempt to control
inflation but it merely made Britainās exports more expensive
ā¢ Introduce National Insurance Act (social welfare) ā provided benefits to
unemployed workers, however these were inadequate
ā¢ The inadequacy of Government actions was criticised by economists
such as John Maynard Keynes who advocated more government
spending to stimulate economic growth and reduce unemployment
6. The 1926 General Strike
ā¢ Long term causes:
ā¢ Britainās mines had become inefficient, the industry elsewhere had become more automated
ā¢ Immediate causes:
ā¢ Mine Owners demanded workers take a pay cut
ā¢ Mine Workers demanded pay increases and Nationalisation of the mines (mines would be taken
over by the Government)
ā¢ Government set up the Samuel Commission which recommended that mines be
modernised and wages cut ā miners refused to accept this
ā¢ When miners went on strike they were joined by other workers, creating a āGeneral
Strikeā
ā¢ The Strike ended after 9 days for most workers, and six months for miners, a setback for
the Trade Union movement.
7. The Great Depression
ā¢ This was triggered by a stock market crash in the
United States which triggered a ādeflationary
spiralā in the economy
ā¢ In Britain the fall was not as severe as there was
no 1920s boom ā but the Labour Government led
by Ramsay McDonald was inexperienced and had
difficulties tackling the situation
8.
9. What did I do to end the
Depression?
ā¢ Took Sterling off the Gold Standard ā this made sterling less
valuable (what did this mean for ordinary people?)
ā¢ Means test introduced for unemployment benefit (what did
this mean for ordinary people?)
ā¢ Wage cuts for workers (what did this mean for the wider
economy?)
ā¢ Introduced protectionist policies (what did this mean for
ordinary people & the economy?)
ā¢ Interest rates lowered to encourage borrowing (and
spending)
10. ā¢ What was the unemployment
rate in 1928? In 1932?
11. What was the increase in unemployment in the two countries between 1928 and 1932?
Which country saw the biggest growth in unemployment?
12. How did people feel about the Depression
ā¢ What was the impact of āmeans
testsā?
ā¢ How did people respond?
13. Who am I? What did I believe
in?
ā¢ āIn the long run we are all deadā.
ā¢ āThe difficulty lies not so much in
developing new ideas as in escaping from
old onesā.
ā¢ āThe market can stay irrational longer
than you can stay solventā.
ā¢ āIdeas shape the course of historyā.
14. The Jarrow March
ā¢ What was it? A 23 day march from Jarrow to the House of Commons
in Westminster
ā¢ Why did they march? To draw attention to social problems in the area
by bringing a petition to the Government in London.
ā¢ Why is it so interesting? Because it highlights the mindset of people in
Britain towards joblessness and Communism.
16. What was the background to the March
Jarrow people saw:
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Middle Class people saw:
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Politicians feared:
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