Economics 3 Flashcards
(33 cards)
Liberals: How was the laissez faire ideology undermined by WW1?
Liberals had to be involved in the war -
The government extended their controls over the economy and took over industries like mines, munitions and railways. Food rationing and alcohol + tobacco were heavily taxed
Liberals: How was Free Trade undermined by WW1?
The government extended their control over the economy. Trade with other nations had to be carefully restricted and regulated.
War exposed how vulnerable Britain’s economy was because of the reliance on foreign trade
Liberals: How was Internationalism undermined by WW1?
Liberals had previously been against foreign intervention, but due to the nature of WW1, they had to go to war against other nations.
They had to stoke nationalism and patriotism to gain support for the war
Liberals: How was Internationalism undermined by WW1?
Liberals had previously been against foreign intervention, but due to the nature of WW1, they had to go to war against other nations.
They had to stoke nationalism and patriotism to gain support for the war
Liberals: How was Balanced Budgets undermined by WW1?
Britain was in huge debts, which meant they had to adapt the budget to remove some.
National debt had increased by 1200% and was over £7 billion by 1918
Liberals: How was Limited State Intervention undermined by WW1?
• had to introduce DORA in 1915, increasing taxation and introducing censorship for soldiers newspapers
•had to introduce conscription in 1916
This meant that the liberals were having to become very involved
Liberals: How was Freedom of the Individual undermined by WW1?
• introduction of censorship 1915
• introduction of conscription 1916
• strikes were banned
What powers did DORA ( Defense of the Realm Act 1915) give the government?
• far reaching powers to suppress anti-war dissent (made publishing anything that might indirectly/directly aid the enemy a criminal offence. Wording had to be very ambiguous as almost anything could be banned including army reports or anti war literature)
• War Office Press Bureau - reports from the army were censored
• powers to requisition any land or property deemed necessary for the war effort
• binoculars usage and kite flying banned
• alcohol purchase was heavily limited ( no drunk or hungover workers in munitions factories)
• 1915 amendment - beer/alcohol was diluted and pub hours were restricted to 12-3pm and 6:30-9:30pm
What powers did DORA ( Defense of the Realm Act 1915) give the government?
• far reaching powers to suppress anti-war dissent (made publishing anything that might indirectly/directly aid the enemy a criminal offence. Wording had to be very ambiguous as almost anything could be banned including army reports or anti war literature)
• War Office Press Bureau - reports from the army were censored
• powers to requisition any land or property deemed necessary for the war effort
• binoculars usage and kite flying banned
• alcohol purchase was heavily limited ( no drunk or hungover workers in munitions factories)
• 1915 amendment - beer/alcohol was diluted and pub hours were restricted to 12-3pm and 6:30-9:30pm
By how much did government spending increase between 1913 and 1917?
From £200 million to £2700 million
Around 1200%
What affect did WW1 have on exports?
Exports remained mostly the same, fluctuating around £600 million per year
Whereas imports were increasing steadily, demonstrating that key British industries remained stable
What effect did WW1 have on the state control of the economy?
WW1 meant the government had to increase their control over the key British industries
What were the new government departments set up to manage the economic war effort?
- 1916 Ministry of Food - introduced voluntary rationing in 1917, and the compulsory 1918-1920
- 1916 Ministry of Shipping - there was a crisis in 1917, when German U-Boats were sinking supplies, nearly sending Britain towards starvation
- 1915 Ministry of Munitions - formed after the Shell Crisis and became a massive success
What industries were nationalised?
- coal (supplies not mines)
- munitions (and munitions pubs)
How were peoples’ day to day lives impacted by the governments new economic changes during WW1?
- couldn’t go to the pub as often due to the specific open times
- widened womens’ role in society, increasing the amount of women in the workforce
- rationing of flour, butter, margarine, sugar, jam, meat
- created lots of extra jobs
- started the process of improving workplace conditions
Were there any positive aspects of the increased government control over the economy in WW1?
- mass production techniques had improved
- changed the structure of major industries
- improving some working conditions
What economic problems did the government face at the end of WW1?
- shipping industry never recovered fully
- had to pay back £millions in debt
- increased unemployment: war industries declined after the end of WW1
- increase in strikes
- increased competition from abroad
- increased public hardship
How was peoples expectations of government changed after WW1? (economy)
people would expect the government to remain more involved in cutting unemployment and industries, and when the government became less invested, people would get upset
1920s: How serious were the problems in the coal industry?
- lots of strikes decreased the rate of production
- other countries (Poland and Spain) were starting to mine their own coal
- mines were poorly equipped
1920s: How serious were the problems in the shipbuilding industry?
- used to be 45% of world shipping tonnage, and were only 30% in the 1920s
- naval orders fell after the war
- British designs were outdated compared to their competition
POSITIVES
- demand rose again in the build up to WW2
1920s: How serious were problems in the iron and steel industry?
- after 1920, demand fell significantly
- export markets were lost during and after the war
POSITIVES
- demand rose again in the 1930s after the depression, and in the build up to WW2 as demand for ships increased
1920s: How serious were the problems in the invisible industries?
- returns from invisibles were now reduced
- WW1 forced Britain off the Gold Standard - weakening the pound
1920s: How serious were the problems in demand side factors?
- foreign competition increased so Britain was getting less trade
- oil was increasingly replacing coal - in excess for the 1920s
- trade restrictions (e.g. in the USA) reduced overseas demand
1920s: How serious were the problems in supply side factors?
- age and backwardness of staple industries increased prices
- outdated machinery
- bad industrial relations (e.g. strikes increasing in coal) hit the staples hard
- trade cycle produced slumps
