Britain Economic Flashcards

1
Q

Gold standard

A

monetary system based on mass of gold

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2
Q

keynesian economics

A

advocate of a mixed economy

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3
Q

Staple industries

A

iron steel coal shipbuilding

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4
Q

agriculture

A

cultivation of animals, plants fungi and life forms for food fibre and products

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5
Q

productivity

A

measure of efficiency of production

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6
Q

service industries

A

transport, retail, entertainment

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7
Q

British economic timeline

A
1914 - 1919 war
1919 growth
1921 economic decline
23- 28 recovery
29-32 depression
33-37 recovery
1938- 39 rearmament
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8
Q

Early 1920s Boom

A

war stimulated growth modernisation
little unemployment
production grew 20%
good wages

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9
Q

1921 bust

A

strucutal unemployment
over investment
decline in staple industry
decline in world trade

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10
Q

Unemployment 1921

A

over 2 million

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11
Q

Wall street crash

A

October 1929

collapse of wall street in USA started depression

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12
Q

Effects of Depression on UK

A

Value of exports halved
1932 3 million unemployed
world trade halted

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13
Q

Levels of unemployment

A

3 million 1932
steadily improved but still 1.5 million by 1939
regional unemployment rich poor divide

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14
Q

Depressed v Affluent areas

A

depressed - Jarrow, Newcastle, Merthyr Tydfil

Affluent - Bristol London Essex

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15
Q

Depressed Areas

A

Staple industries - impacted heavily by depression
national average unemployment 22%
jarrow 73%
These areas had worst health housing and infant mortality rates

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16
Q

Economic Revival - electricity

A

1932 - 37 industrial production rose by 46%
1939 2/3 houses wired for electricity
radios sold - 500,000 in 1930, 2M in 1937

17
Q

Economic revival - Motor, Chemicals, Aircraft and service industries

A
no. of cars on road in 1939 3 million
400k employed in car industry 1939 
ICI chemicals
New industries usually in south and midlands
80% of factories built in London
service industries grew
18
Q

Housing

A

Boom in houses 1930s 2.7m built
new houses usually in suburbs
more affordable to build

19
Q

Temporary Break

A

1937 downturn
unemployment 2 million
short lived due to rearmament
35-39 1 million jobs created by 1939

20
Q

Causes of recovery

A

trade cycle
new industries
housing boom
affluent spending

21
Q

New industries

A

electricity and cars!
sustained recovery
1934 7% employment accounted by new industry

22
Q

Housing Boom

A

1935 peak time of housing
750k employed by building
low rates allowed
started spin off trades (plumbing etc)

23
Q

affluent spending

A
1938 average family had double real income then 1914
deflation made good cheaper
1930s real wage increased 15%
imports cheaper
1939 - 20m cinema tickets weekly
1939- 20m went seaside yearly
jobs in entertainment and sport 
1937 - 116k
24
Q

Miners and Black Friday

A

Miners wanted full nationalisation
called for wage rise
govnt set up sankey commision called for high wages low hours but no nationalisation

25
Q

Causes for strike

A

gold standard

Baldwin kept things the same while commission investigated

26
Q

Samuel report

A

march 1926
better working hours but slight wage cuts
both sides didnt like

27
Q

General strike

A
4th may - 12 may 1926
Trade disputes act made strike illegal
govnt planned well, unions didnt
members of public took over key roles
govnt spent 433 million over 9 days, greater financial ability
28
Q

effects of depression

A

union membership fell 8 million in 1921, 4 million 1934

unions became more political pushing Keynesian ideas

29
Q

Keynes view v Orthodox view

A

Keynes - gold standard was disaster, savings not properly used
Orthodox - gold standard brought stability

30
Q

Labour Policies in Depression

A

many believed no solution, just resolve itself
disagreement in party meant not alot done
treasury hard to balance with benefit spending

31
Q

suspension of gold standard

A

Nat Govnt Aug 1931
£70 million cuts in Govnt spending
increased income tax 25%
Gold depleted so gold standard abandoned
pound devalued 30% from $4.86 to $3.40
positive as balanced exchange and export rates

32
Q

Low interest rates

A

6% in 1931
2% 1932 - 39
encouraged business growth as people more willing to borrow with low rates
less saving for spending and borrowing while cheap

33
Q

Britain pulling out of depression

A

slow recovery
cyclical unemployment disappeared and structural remained
NG made token effort to help depressed areas

34
Q

Special Areas Act 1934

A

2 million available to depressed areas, nothing substantial achieved
44k encouraged to move
30k on retraining courses
1937 amendment tried to encourage firms to set up in depressed areas
rearmament only real solution to unemployment

35
Q

NG influence

A

didn’t directly tackle depression

Chamberlain didn’t agree with Keynesian rather stimulating private enterprise

36
Q

Factors outside Britain control

A

recovery in world
natural recovery
unemployment act 1934 - 26 weeks claim benefits
unemployment assistant board controlled benefits and people on dole