1929-1939 (The Hungry 30s)- Economic (Economic Issues)

Question 1

why did the 30% devaluation of the £ in 1931 turn out to be good?

Answer 1

cheaper to export goods

Question 2

what were interest rates reduced by?

Answer 2

6% to 2%- lead to cheap money

Question 3

why was the construction industry revived?

Answer 3

housing boom

Question 4

what was the 1932 Neville Chamberlain Import Duties bill, and what did it aim to achieve?

Answer 4

10% tax on all goods entering GB

empire becomes self supporting

Question 5

why did the Libs resign from Nat Gov?

Answer 5

preferred free trade to Tories protectionism

Question 6

what did the gov do that caused 70% unemployment in Jarrow?

Answer 6

closed unprofitable shipyards, mines etc

Question 7

in 1939 how many people were employed in the car industry?

Answer 7

400k

Question 8

what was the coal production in in 1938?

Answer 8

227m tonnes (1928 levels)

Question 9

by what did the price of wheat fall?

Answer 9

50%

Question 10

when did the gold standard end?

Answer 10

1931

Question 11

give a positive of new industries in the 1930s?

Answer 11

electricity/car production quadrupled

Question 12

give 5 reasons as to the economic recovery of industry?

Answer 12

• lower prices meant those with wages stretched further
• high unemployment but still more people in work than out of it
• cheap money=borrowing for things like houses
• social trends like smaller families meant families had more to spend
• industries supplying home market grew increasing jobs in service industries

Question 13

how much did the price of wheat fall by?

Answer 13

50%