Britain Transformed: The Economy- Post War Boom, Crisis And Recovery 1918-39 Flashcards
(13 cards)
Why was Britain’s economy weakened by 1918?
-WWI lasted longer than expected and consumed vast national resources.
-Britain borrowed heavily from U.S. banks.
-German U-boats sank 40% of British merchant shipping, cutting off exports.
-Industry shifted to war production, reducing export output.
-Over 750,000 British men died, damaging labour force.
-Total war cost: £3.25 billion.
What happened to Britain’s exports between 1914 and 1918?
In 1914, exports were 1/3 of Britain’s wealth; by 1918, only 1/5.
How did Britain’s debt and public finances look in 1919–1920?
-Total national debt in 1920: £8 billion.
-In 1919, debt was 136% of Britain’s GDP.
-1920 government budget: £800 million; £300 million went to debt payments.
How did income tax change between 1908 and 1924?
-1908: 5% (9 pence in the pound).
-1924: 25% (5 shillings in the pound).
-Raised to help repay war debts.
What caused Britain’s balance of payments problem in the 1920s?
-Imports stayed at pre-war levels.
-Exports declined significantly due to war damage and shipping losses.
-Result: persistent negative balance of payments.
What caused the brief post-war boom of 1919–1920?
-Consumer demand surged for rationed goods.
-Businesses and individuals spent accumulated wartime savings.
What were the two major recessions of the interwar period?
-1920–1921 and 1929–1934.
-Both severely impacted heavy industries and regions reliant on them.
What was the scale of unemployment 1918–1938?
-Around 70% of industrial workers experienced unemployment at some point.
-Unemployment remained persistently high across the period.
What characterised the recovery of 1921–1929?
-Focused on southern England, south Wales, and Tyneside.
-Growth in new industries: electronics, chemicals, finance.
-Marked a structural reorganisation of the economy.
What characterised the recovery of 1934–1939?
-Driven by growing consumer demand.
-Recovery centred in the Midlands.
-Heavy-industry regions continued to decline due to unresolved structural issues.
What characterised the recovery of 1921–1929?
-Focused on southern England, south Wales, and Tyneside.
-Growth in new industries: electronics, chemicals, finance.
-Marked a structural reorganisation of the economy.
How did regional differences affect economic recovery?
-Southern and Midlands areas grew due to new industries.
-Northern and heavy-industrial areas (e.g. coal, steel) suffered long-term decline.
How diverse had the British economy become by 1929?
-Shift from reliance on traditional heavy industry to newer sectors like services, chemicals, and consumer goods.
-Economically diverse by region: prosperous south/Midlands vs. struggling north/industrial areas.
