Economic Impacts of WW1 on Britain Flashcards
(179 cards)
1
Q
what did the size of the war require?
A
state intervention on a huge scale
2
Q
what policy were the gov steering away from during B’s wartime economy?
A
laissez-faire
3
Q
define laissez faire
A
limited state intervention in its economy and/or society
4
Q
what did Britain have to support a massive increase in?
A
production of weapons of war
5
Q
how many shells had been produced by early 1915?
A
2 mil
6
Q
by 1918, what was the overall shell production?
A
187 mil
7
Q
what did the supply of machine guns increase to from 1914 to 1918?
A
1914: 270
1918: 120,870
8
Q
what was the supply of machine guns in 1914?
A
270
9
Q
what was the supply of machine guns in 1918?
A
120,870
10
Q
what did B have to supply to its allies?
A
vast quantities of war materials
11
Q
List 3 huge demands
use FFT
A
- provide transport
- increase and protect provision of food
- ensure adequate supplies of fuel (especially coal)
12
Q
what did the huge demand posed by the war do to prices in 1914?
A
pushed up prices
13
Q
what was in shortage due to the huge demand posed by the war in 1914?
A
materials and workers
14
Q
Why did the state control of stocks of vital war materials and fixing prices? (3)
A
- Private industry couldn’t cope with on its own
- protection purposes due to U-boat campaign Germans
- failure of Nueve Chapelle offensive 1915; shortage of shells
15
Q
What was the first major assault by British forces vs German defences in the West?
A
Nueve Chapelle
16
Q
What did DLG persuade parliament in 1915 to grant?
A
- Greater state powers over industry by extending DORA
- set up MOM
17
Q
what was the purpose of MOM? (Peppa Pig Sings)
A
oversee: -production -purchase -supply of all war material
18
Q
what did MOM set up?
A
central purchasing system for buying essential war materials
19
Q
what did MOM organise?
A
British science to help war effort
20
Q
what did MOM encourage?
A
development and production of new weapons
21
Q
list two new developments of war weapons that MOM encouraged?
A
- tank
- mortars
22
Q
what did MOM encourage factories to do?
A
-convert from peacetime to war production
23
Q
what did MOM build?
A
its own national factories - some of which became huge enterprises
24
Q
how many people were employed in the Leed’s MOM national factory?
A
16,000 workers
25
how many shells were produced in the Leed's MOM national factory a year by end of the war?
25 mil shells p.a
26
list 3 key industries that came into state control
- railways
- docks
- coal mines
27
by 1918, how many state factories did MOM directly manage?
250
28
by 1918, how many state factories did MOM supervise?
20,000
29
by 1918, how many workers did MOM control?
4 mil
30
what were women encouraged to do during the war time eonomy?
take up jobs usually only done by men
31
what else did MOM control? (WPP)
- wages
- profits
- prices
32
what did MOM ration?
essential foods
33
what % of all imports did MOM buy?
90%
34
what were MOM in charge of? (2)
- transport
| - fuel
35
what did the state do to the clocks?
altered them by introducing British Summer Time
36
what did the state do to the strength of alcoholic drinks?
reduced
37
what did the state limit?
opening hrs for public houses
38
why was it hard to feed the huge armies? (2)
- shortage of labour on land
| - German U-boat campgain sinking merchant ships bringing food from overseas
39
what was set up to increase the amount of home grown foodstuffs?
Department of Food Production
40
why was Department of Food Production set up?
to increase the amount of home grown foodstuffs
41
why did the gov subsidise farmers?
-to plough wasteland
42
what was done in order to plough wasteland?
government gave farmers subsidies
43
what did the gov allocate farmers with?
scarce fertlisers
44
what/who was supplied to work on the land?
prisoners of war
45
what were females encouraged to volunteer for?
helping with farm work
46
T/F in 1913, gov expenditure and revenue was balanced
TRUE
47
what happened to gov expenditure and revenue from 1913-1918?
gov expenditure was far greater than gov revenue
48
what did gov spending go from in 1913-1918?
1913: £200 mil
1918: £2600 mil
49
define balance the budget
ensure that gov only spends as much money as it receives so it avoids going into debt
50
how was B able to spend so much?
loans - especially from USA
51
what policy was abandoned during war?
balancing the budget
52
who did B borrow money from? (2)
- borrowed money from its own people
| - and from neutral countries
53
what was increased in order for gov to spend money?
taxation
54
who was taxation increased for? (20=)
- middle class
| - workers
55
what sort of tax was greatly extended in 1915?
income
56
what year was income tax greatly extended?
1915
57
what bank mainly financed the huge amounts of war materials B bought from USA?
NY banking firm J.P. Morgan
58
what was happening in late 1915 to B's financial reserves?
running out
59
how much was the loan that the USA agreed to give to B?
$5000 mil
60
what became more crucial to B's war effort?
financial dependence on USA
61
what did B face when war ended?
huge debt and severe economic harships
62
what were workers hit by an increase in?
cost of living
63
what happened to the cost of living and who did this effect?
workers + it increased
64
what is the % of increase in food prices in the first month of war?
10%
65
what happened to food prices following the start of the war?
continued to increase
66
by 1918, what had doubled?
food prices
67
what happened to food prices in 1918?
doubled
68
in what year did food prices double?
1918
69
in 1914, how were prices and wages levels?
balanced, 100
70
in 1918, how were price and wage levels?
unbalanced - 203 (prices), 195 (wages)
71
what did workers benefit from?
more work
72
list 2 benefits for workers
- full time work
| - many unskilled workers had bargaining power due to labour shortages so they earned more
73
what could those already in work do to increase earnings?
work overtime
74
list 2 pieces of evidence to show better living conditions for the poorest in working class
- lower levels of working class mortality
| - low poor relief applications
75
what classes were disadvantaged by the war?
- middle class
| - upper class
76
why were the middle/upper classes disadvantaged by the war? (2)
- higher income tax rates
| - taxes on land
77
what happened to many landed estates?
sold off
78
what was the % of land holdings in England being sold between 1917-1921?
25%
79
how were conditions for many working class houses?
poor
- lacked basic facilities
- over crowded
80
what did war do to housing situation?
worsened it
81
what were the two major factors that worsened housing situation during war?
- new house building and even major repairs were generally halted
- demand for munition workers meant even more people coming into already overcrowded industrial towns
82
why did landlords increase rents?
increase demand combined with no increase in supply of houses
83
what was a place where the housing situation was especially bad?
Glasgow
84
who led unrest to gov which meant they introduced a Rent Restriction Act in 1915?
Mary Barbour
85
what was introduced as a result of unrest in Glasgow led by Mary Barbour?
Rent Restriction Act 1915
86
when was the Rent Restriction Act introduced?
1915
87
what did DLG promise houses would be fit for?
"fit for heroes"
88
who introduced the first Housing and Town Planning Act in 1919?
Christopher Addison
89
when was the first Housing and Town Planning Act introduced?
1919
90
what did the first Housing and Town Planning Act encourage local gov to do? (2)
- clear slums
| - construct low rent homes for working class
91
how many houses had been built by 1922?
200,000 houses
92
200,000 houses were built by what year?
1922
93
what was the true building of houses cost but what did Addison end up paying?
true cost: £385
| payed: £910
94
why was Addison sacked?
following outcry vs us of public money to subsidise building industry
95
what did DLG have to do in HOC?
apologise for house building issue
96
by 1922, what had been withdrawn?
grants for housing
97
because grants for housing had been withdrawn, what was the result of this?
shortage of over 800,000 homes for lower classes
98
what did Addison's act establish?
principle that housing was now considered necessary public service that local gov were responsible for providing
99
define recession
a slowdown in economic activity which can lead to businesses closing down and thus more unemployment
100
what occurred after 1921?
economic recession
101
what did the economic recession that occurred after 1921 mean?
rather than expanding social provision, gov had to consider a policy of retrenchment
102
define retrenchment
cutting back on gov spending
103
why did gov appoint a committee under Sir Eric Geddes?
- struggling with debt interest
- falling tax revenues in trade slump
- rising spending
104
what did the committee under Sir Eric Geddes recommend?
cuts of £86 mil reduced to £64 mil - became known was the "Geddes Axe"
105
what are the impacts of the Geddes Axe? (4)
- housing subsidies withdrawn
- £46.5 mil cut from armed forces and £18.2 mil from education
- Agr Act 1920 was repealed
- Unemployment Act altered to make it more hard for unemployed to claim benefits
106
how much money was cut from armed forces under the Geddes Axe?
£46.5 mil
107
how much money was cut from education under the Geddes Axe?
£18.2 mil
108
what did the Agr Act of 1920 do? (2)
- gave price guarantees for farmers
| - maintained min wages for farm laborours
109
when was the Agr Act?
1920
110
under the Geddes Axe, what was the impact on Unemployment Act?
it was altered to make it more hard for unemployed to claim benefits
111
what stance did TU adopt during war?
patriotic
112
what did DLG negotiate with TU movement?
keep strikes at min
113
what did the Treasury Agreement in 1914 specify?
unions involved in vital war work not allowed to strike
114
what act banned strikes for munition workers?
Munitions of War Act 1915
115
what also became illegal for workers in key production posts?
to switch jobs w/o permisson
116
reaction of some workers to bans/acts
some objected and believed that TU no longer fulfilling role of fighting for better wages and conditions
117
what were there complaints about in particular by TUs?
acceptance of dilution agreements
118
define dilution agreements
agreement between gov and TU in various industries to allow semi'skilled, unskilled, and female workers to be trained to do jobs previously reserved for skilled craftsmen
119
what continued despite bans?
strike activity
120
in 1917, how many strikes were there across B?
48
121
by 1918, what was clear about relationship between gov and TU?
good relationship coming to an end
122
what was stronger by 1918?
TU movement
123
what happened to membership in 1921 (TU)?
doubled to 8 mil
124
what was the mood amongst TU?
militancy
125
what happened in early 1920s?
creation of v large unions through amalgamation eg Transport and General Workers Union (TGWU)
126
what does TGWU stand for?
Transport and General Workers Union
127
who led TGWU?
Ernest Bevin
128
when was there a police strike in Liverpool?
1919
129
when were there serious riots in Glasgow?
May 1920
130
what R campaign did unions support?
"Hands off Russia"
131
what did dockers refuse to load?
a ship w/ weapons to be used vs R communist
132
who continued to try and improve industrial relations?
DLG
133
in 1919, what did DLG manage to put a stop to?
rail strike
134
what did DLG avert the threat of in Feb 1919 and how?
coal strikes by appointing Sankey Committee to investigate pay and conditions in coal industry
135
what did DLG set up to negotiate wages rates and look at production methods?
industrial councils
136
why were industrial councils set up?
to negotiate wages rates and look at production methods
137
why did wages get slumped and why did no. of strikes grow?
industrial recession that started in 1921
138
how many days were lost in strike activity in 1921?
almost 86 mil days
139
define nationalising
taking an industry into state ownership, organisation and control
140
what did Cons-dominated cabinet refuse to accept?
recommendations of majority of Sankey Commission to nationalise coal mines
141
why was Sankey Commission set up in 1919?
investigate wages and conditions in mines
142
what did the Sankey Commission's reveal about conditions in mines?
poor living conditions; chaotic structure of industry
143
what Sankey Commission recommendations were agreed by gov?
- higher wages
| - shorter working day
144
why did Cons want to avoid nationalising coal mines?
too radical and sounded too much like socialism
145
why did miners who wanted coal mines to be nationalised feel betrayed by gov?
they suffered from harsh conditions and this would help to alleviate exploitation from mine owners
146
what were used to end strikes regarding nationalising coal mines?
troops and tanks
147
what did post-war strike activity lead many to fear?
B workers may follow eg of R communists who had taken control of gov under Lenin in 1917
148
what was DLG told there would be?
"some sort of revolution" w/i next 12 months
149
what was established in 1920?
Communist Party of Great Britain
150
what was centre of radical unionism?
Clydeside in Glasgow
151
how many demonstrators filled up George Square in 1919, demanding the 40-hr week and raised socialist red flag?
90,000
152
how did gov react to demonstration at George Square?
sent in troops and tanks
153
what were most workers in B more concerned with?
- low wages
- rising prices
- food shortages
as opposed to political change
154
what occurred in 1919 and 1920?
economic boom
155
how were domestic and export industries doing 1919?
well
156
what was rising? (4)
- industrial production (grew about 20%)
- employment levels
- profits
- wages
157
what stopped in winter of 1920-21?
economic progress
158
what happened to unemployment in 1920-21?
more than doubled
159
what was there an urgent need for during war?
B's staple industries products
160
demand for what declined dramatically towards end of war?
products from staples
161
what expanded by 50% during war?
B's capacity to produce steel
162
by 1921, what was clear had been done in steel indsutry?
substantial over-investment
163
B had how many tons of shipping during war to cope with demands of continual losses to G u-boats?
2 mil
164
after 1918, how many tons needed to be produced a year?
0.5 mil tons
165
by 1918, what countries had producing more and were supplying wolrd markets?
Poland and Germany
166
2 rival energy sources that affected coal industry
- oil
| - electricity
167
what had been lost during war to Japanese, India and US?
overseas markets
168
what lowered demand?
restrictions on trade
169
what affected staples the most?
- tougher foreign competition
| - restrictions on trade
170
what impact did decline of staples have on workers?
massive lay-offs of workers
171
define structural unemployment
unemployment resulting from changes in make up of economy
172
T/F before war, B already imported greater value of goods than it exported
TRUE
173
how did B make up for greater levels of value of goods than it exported?
- selling services
| - income from overseas investment
174
T/F B had an unfavourable trade balance before war
FALSE
175
define trade balance
balance between imports and exports
176
during war, what did B gov and other investors do to many overseas investments?
sold them off
177
what did B have to pay from loans?
interest
178
after war 1919-20, what was there a ST increase in?
exports to countries that couldn't get B goods while war was fought but this didn't last
179
by 1921-22, what did B have an unfavourable...?
trade balance
