Britain Economic

Question 1

Gold standard

Answer 1

monetary system based on mass of gold

Question 2

keynesian economics

Answer 2

advocate of a mixed economy

Question 3

Staple industries

Answer 3

iron steel coal shipbuilding

Question 4

agriculture

Answer 4

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

Question 5

productivity

Answer 5

measure of efficiency of production

Question 6

service industries

Answer 6

transport, retail, entertainment

Question 7

British economic timeline

Answer 7

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

Question 8

Early 1920s Boom

Answer 8

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

Question 9

1921 bust

Answer 9

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

Question 10

Unemployment 1921

Answer 10

over 2 million

Question 11

Wall street crash

Answer 11

October 1929

collapse of wall street in USA started depression

Question 12

Effects of Depression on UK

Answer 12

Value of exports halved
1932 3 million unemployed
world trade halted

Question 13

Levels of unemployment

Answer 13

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

Question 14

Depressed v Affluent areas

Answer 14

depressed - Jarrow, Newcastle, Merthyr Tydfil

Affluent - Bristol London Essex

Question 15

Depressed Areas

Answer 15

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

Question 16

Economic Revival - electricity

Answer 16

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

Question 17

Economic revival - Motor, Chemicals, Aircraft and service industries

Answer 17

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

Question 18

Housing

Answer 18

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

Question 19

Temporary Break

Answer 19

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

Question 20

Causes of recovery

Answer 20

trade cycle
new industries
housing boom
affluent spending

Question 21

New industries

Answer 21

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

Question 22

Housing Boom

Answer 22

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

Question 23

affluent spending

Answer 23

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

Question 24

Miners and Black Friday

Answer 24

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

Question 25

Causes for strike

Answer 25

gold standard | Baldwin kept things the same while commission investigated

Question 26

Samuel report

Answer 26

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

Question 27

General strike

Answer 27

``` 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 ```

Question 28

effects of depression

Answer 28

union membership fell 8 million in 1921, 4 million 1934 | unions became more political pushing Keynesian ideas

Question 29

Keynes view v Orthodox view

Answer 29

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

Question 30

Labour Policies in Depression

Answer 30

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

Question 31

suspension of gold standard

Answer 31

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

Question 32

Low interest rates

Answer 32

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

Question 33

Britain pulling out of depression

Answer 33

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

Question 34

Special Areas Act 1934

Answer 34

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

Question 35

NG influence

Answer 35

didn't directly tackle depression | Chamberlain didn't agree with Keynesian rather stimulating private enterprise

Question 36

Factors outside Britain control

Answer 36

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