Economic problems in the interwar years Flashcards
How many men died during WW1 and what did it do to the economy
(Legacy of WW1)
900,000 men died and the death of the workforce caused many companies to lose workers which helped damage the economy
How did the war have an effect on trade
Legacy of WW1
1) During the war 20% of british ships were sunk which slowed Britain down on exports.
2) Britain couldn’t trade with countries they were at war with causing them to become more self sufficient
How much did the war cost
Legacy of WW1
£3.25 billion
How much debt was Britain in after the war
Legacy of WW1
They had debts of £8 billion. Wartime debts rose by 160% by 1924
What was the result of breaking from the golden standard
Bad Economic Management
The value of the pound fell because of inflation (Which rose by 25%) resulting in £1 = $3.19 in 1919
How did increased interest rates affect the economy
Bad Economic Management
It stunted economic growth, as companies spent more money on debt and people spent less money overall
How did returning to the gold standard affect the economy in 1925
(Bad Economic Management)
it made British exports more expensive for other countries so now other countries did not want to trade with Britain making trade even worse.
How did Geddes Axe 1922 affect the economy
Bad Economic Management
Geddes Axe led to £24 million of spending cuts, these cuts led to increased unemployment
How did Protectionism make the economy worse
Bad Economic Management
The introduction to protectionism and tariffs caused other countries to set up their own tariffs which limited further world trade. The damage to the trade market resulted in a increase in unemployment.
Between 1915-1918 how much did trade union membership grow
Rise of Trade Unions
1915 = 4.3 million 1918 = 8.3 million
How did (1926) The year of the General Strike affect the economy (Rise of Trade Unions)
323 strikes were launched which had an overall result of 162.23 million work days lost. The Trade Unions disrupted many industries
How did the depression affect different parts of britain
The Depression
The North of England was hit hard alongside the South of wales and textiles industries in Yorkshire and Shipbuilding in scotland.
What did the depression do to the town of Jarrow
The Depression
Every man was made redundant after the coal mines, steel works and Palmer’s shipyard closed.
How much did unemployment rise by in 1933
The Depression
2.5million (25% of the workforce)
How did the depression affect the demand for products
The Depression
The demand for products such as coal and steel fell dropping from 180 million tonnes in 1929 to 155 million in 1935
