economic developments 1873-1914 Flashcards
(11 cards)
what word categorised this time?
incipient decline
what was growth like?
GDP increased by 50% between 1870-1890
But the growth of Germany and the USA was 2x that of GB for 1873-1914
what was the export industry like?
Brit manufactured goods declined from 75% of global exports to 50%
25% of all imports into GB were manufactured goods
BUT 30% of all global exported manufactured goods were made in GB. GB was top 3 economies of the world 1914
how was steam and technology changing?
Steam remained important but GB was slow with electricity supply relative to germany
Germany used the new and more effective Gilchrist Thomas process of 1893 much more than GB, overtaking GB steel production
how did the staples changes?
1914: Brit steel output steel output was 7m tons but Germany=15m tons and USA= 27m tons
GB imported basic steel from Germany from 1913
60% of the world’s steel ships were built in GB in 1911 from 80% in 1892
Brit coal exports 2x. employed more 1m men BUT seams exhausted and poor industrial relations
how did the creation of new industries impact economics?
Bit established electricity, chemical and car industry BUT USA and Germany produced 60% of worlds chemical compared to 11% Brit
US produced 4x as many cars as the whole of Europe
Lever Bros’- mass produced soap BUT new Brit industries focused on domestic not international markets
between 1883 to 1914, Germany overtook Brit in patents
what was the nature of Great Depession?
stock market crisis in NY and Austria in 1873
prices decline by 40%
inflation in 1900 GB following the Boer War
what was unemployment like?
in 1892- 10%, 1908-7.7%
the phrase unemployment was first used in this period
how did foreign competition impact the depression?
advances in communication and transport led to ‘annihilation of distance’
USA wheat imports to GB grew from 0 to 1.8m ton by 1900
GB participated in unilateral free trade so it was not constitently mirrored by competitors
Germany and USA used tariffs to protect emerging industries
how did the City of London (financial capitalism) impact the depression?
GB foreign investment increased from 1200m to 4000m by 1914
40% went to Empire, 60% went to foreign countries
foreign investment did not automatically benefit the foreign competitors of the Brit industry but it did incentivise foreign economics to export Brit to obtain the pounds to pay their debts
GB invested 5-7% of GNP at home, industry was slow to invest, Brit banks gave short-term credit compared to German banks extended long term credit
how did agriculture impact the incipient decline?
1914, 1/2 of all fruit, bread, butter and cheese was imported
40% of meat and 30% of eggs were imported
agric output fell by 20% between 1851-95 as farmers successfully moved to livestock and dairy farming
