Britain- Recession Flashcards
1
Q
Recession 1920-21
A
- unemployment levels increased to 12% between 1920-21
- by 1921, 2 million were unemployed. Industrial areas like South Wales became depressed
- cost of living had increased by 25% between 1918 and 1920
2
Q
Factors causing the recession
A
Debt- war expense meant Brit had to borrow 850 mill after it had spend gold reserves
Deflation- gov cut 75% of spending between 1918-20 in response Bank of England increased interest rates to 7% and debt rises to 160% by 1929
Loss of ex- Brit ind lose ex mark due to 1st war and foreign companies take advantage
Indust. Rel- prevent gen strike. DLG brought of Brit work with increase pay+ and less hours
Underinvest- comp force look overseas for goods I.e Brit began import American steel so Brit only produce 83000 tonnes of steel
3
Q
Attempts to solve the recession 1921-29
A
- both conserv+ lab gov attempt improve econ
- DLG argued econ improve on its own
- many mid-class core wanted to see tax cuts and less spending
