A changing political landscape 1929-1931 (T1) Flashcards
What happened in the 1929 election?
MacDonald returned to power.
What were the social reforms MacDonald put in?
- The 1930 Housing Act
- The Coal Mines Act of 1930
- Unemployment Insurance Act
What was the 1930 Housing Act?
Cleared three-quarters of a million slum houses and replaced them with modern homes by 1939.
What was the Coal Mines Act 1930?
Attempted to ensure better pay for workers and more efficient pits.
What was the downside to the Coal Mines Act 1930?
The weakness of the legislation ensured that the mine owners could ignore it.
What was the Unemployment Insurance Act?
Gave the government powers to create public works schemes to alleviate unemployment.
How much was funded to the Unemployment Insurance Act?
£25 million of government money
What happened in Summer 1931?
In summer 1931 there were rumours that the forthcoming budget would be unbalanced.
What did this unbalanced budget mean?
Meaning that the government had plans to spend more than it could afford.
What would this increased spending mean?
Led to an increase in borrowing.
What did banks in America do?
Engaged in panic selling of the pound, exchanging it for other currencies.
What did this panic selling do to the pound?
Led to the pound slumping in value.
What did the government do to fix this economic problem?
Proposed spending cuts and tax hikes, introduction to a 10% cut in unemployment assistance.
What would these measures do?
Would keep the value of the pound stable, but caused hardship for Britain’s poorest.
What did this threat do?
Split the Labour Party and MacDonald’s cabinet, leading the government to resign on 24 August 1931.
