Interwar Period- Econ

Question 1

End of war -coal

Answer 1

Mine oworkers believed that demand for coal would cont post war and profits would be good
Miners had hoped that gov would cont to help cont to help control and hoped for complete nationalisation
Sankey commission

Question 2

No coal boom

Answer 2

Lack investment new tech- private businesses- old 18th and 19th out by axe- nationalisation may increase- high production costs
Former prewar british markets had started to choose other power sources such as electric and oil
Former customers had gone elsewhere during war for imports
Coal mine owners threatened to decreae min wages

Question 3

Sankey commission

Answer 3

Industry should be natioonalisised
Lg ignored- look not for workers, for mine owners
Mine owners influential and powerful and wanted to avoid taking control of industry facing serious conflict
Looked siding with tories- esp in coalition

Question 4

Samuel commission

Answer 4

1926
Royal commission headed by sir samuel recommended small wage cuts, not longer hours
Reccommendations not accpeted by miners or employers
Ty congress threatened a strike of key industry 4 may

Question 5

Miners strike

Answer 5

1919
2.4 mill on strike
Lancashire
5,000 against price cut
S wales- 7000 men against increased hours

Question 6

Black friday

Answer 6

1921
Threat of mine owners to impose pay cuts that increase working hours when coal miners were returned to private ownership 1921 mar- miners had to accept new conditions or lose jobs
Called on railwaymen and transport workers to join strike apr 1921- formed triple alliance
But railwaymen and transport workers felt not tried hard enough to negotiate, balck friday although miners cont with a bitter strike they were evnetially forced back after accept wag ecut
Destroyed triple alliance- created in 1914

Question 7

Econ changes ww1

Answer 7

Need for state intervention
Free market would not be rleied upon to manage econ
Army needed men and munitions
New lkib started to change attitudes prior to war

Question 8

Munitions ww1

Answer 8

1915 shell scandal- inefficiency- minister of munitions- lg controleld 20,000 munitions factory
250 shel factories built by state
Profits limited and prices kept down
New tech- electricity
Better standards health and safety
Led to nationalisation in other areas- such as pubs in munition producing areas closing early
Fund 2,000 mill to fund expansion production

Question 9

Railways ww1

Answer 9

Quickly under state control
Highlighted inefficiencies
Not nationalised after war but did lead to structural changes
By 1921, only 4 railway comanies as opposed to 130 at start of war- inefficient to have lots

Question 10

Shipping in ww1

Answer 10

Gb world leader- producing 60% of worlds ships 1909-13
1917- crisis, 4 mill tonnes of ship was struck by u boats- overcome by convoy system- battleships with emrchant ships, food shortage 1917- 6w still london starved
Lr- britain never recovered to pre waar dominance

Question 11

Mining in war

Answer 11

Bought under gov control agfter stike in 1915
Price controlls introduced 1917 to ease supply
Coal mines remianed in private hands
Industrial relations remained poor- managers focused on profit
Hand out- no technical innovation

Question 12

Rations- in ww1

Answer 12

Due to dependancy on imported food, shipping of fod by 1916
Ministery of food set up in 1916, subsidies were given to decrease bread prices, some voluntary practises- propaganda posters
Full rations 1918- can sugar, meat, butter, jam, margernine

Question 13

Agriculture in ww1

Answer 13

Gov knew had to increase production duet to reliance on imported food
Cultuvation production act 1917 meant farms coul dbe forced to change land use, though rarely used- pasture to araable
Corn production act 1917 gave min price for grain and min wage agricultural labourers
Women land army provided extra labour
Due to tensions in con party, gov aaimed to persuade rather than fofrce
Daylight savings introduced

Question 14

Gold standard

Answer 14

A monetary system by which paper money is backed by gold in the bank
Sets fixed price gold, buys and sells gold at that price

Question 15

Why goldstandard introduced

Answer 15

Churchill as chancellor saw that return to gold standard would help econ to its pre war standards- as strong econ in 19th c

Question 16

How gold standard introduced

Answer 16

Opted pre-war valuation, seen as 10% too high

Question 17

problems with gold standard

Answer 17

Exports v expensive comp competition
Less borrowing for investment- high interest rates
Hit coal shipping, iron and steel- staple industres

Question 18

Interest rates-gold standard

Answer 18

Had to be kept high to maintain gold standard
Without foreign money/gold deflation- increased incentive foriegn investment with high interest rates
Discouraged borrowing and preventing innovation in industry

Question 19

Gold standard- avoid budget deficit

Answer 19

Which would destory confidence of foriegn investors
Gov limit on spending- old age pension and spending cut
1929- wall st crash and depression, unemployment increased benefits

Question 20

Labour gold standard

Answer 20

1931- left
Banking crissi over
Macdonald abandon gold standard as had ruined econ
Recommended cut unemp by 10%, deficit threeaten another banking crisis
But lab wouldnt- work or maintenance
1931- lab split cabinet 11v9

Question 21

General strikes date§

Answer 21

4-12 may

Question 22

general strikes- gov sucess

Answer 22

Seemed to win- tuc called of the strike without achieving their objectives
Baldwin prepared for 9 months- subsidy
Oms- organisation for management of supplies- trained middle class volunteer strike breakers eg uni boys police, set up stores of food and fuel, women cooking
1927- trade disputes act, baned sympathy strike actions- so no repeat

Question 23

General strike - gov failure

Answer 23

Return to gold standard 1925 major cause- depressed econ, made exports nmore expoensibe, increased unemp of 1920s worse
Tension increase samuel comm- siding with mine owners
State ignited when gov alled off talks with tuc 4 may
Gov striking armed repsonse unpop
Glasgow- fights w police
Army
Lab victory in 1929

Question 24

General strikes- strikers won

Answer 24

Capable of organising
4 may 1.75 mill out on strike, transport on knees, cars flooded roads to make up for it, chaoes for 9 days
Labourers across british industry in tuc called to arms
King george v- sympathise dwith strikers- ‘try living on their wages before you judge them’
Coal sector boomed- as return to work, increaed later 30s reamamrment- production increased to 3000tonnes/month/man by 1939- cost high- unemp fell by third
Employwers reluctant to cut wages
Unions spring up new industries such as automative and electricity in late 1920s
Strikes discourage employment from cutting wages in future

Question 25

General strike- strikers failed

Answer 25

Didnt achieve aim Baldwin pm- ‘general strike is a challenge for parliament and a road to anarhcy and ruin’ Roman catholic church = striking a sin- 9 may 12 may- tuc stike deal with mine owners and strike called off- admission had been beaten by gov, superior organisation and financial resources Miners continued to strike for 6 months, eventually hunger drove back to work- accept longer hours, lower pay, decreased power of miners Membership tuc fel 5.5mill 1920- 3.75mill 1925 Av no days lost to strikes fell- 1919-21- 2.1 mill, 1926-2.75mill, 1927-39- 300,000

Question 26

Wall st crash

Answer 26

Impact international trade decreased ipmorts Loans recalled and trade with usa slumped President hoover used high tarrifs- stop amecian consumers buying goods other nations- made non us goods expensive,d ecline in demand and profit When america sneezes- the whole world catches a cold Sped yp econ downturn

Question 27

Unemployment wall street crash

Answer 27

Rapid growth 6-15% 1929-32 Meant over 3 mill people couldnt buy consumer goods- less demand british goods, more businesses go bankrupt

Question 28

Import duties- depression

Answer 28

Usa after wall st crash 1929-32 exports halved Decreased demand ships to transport goods, decreased steel and coal

Question 29

savings in depression

Answer 29

Even those in employment may be more careful with spending and investment due to econ uncertainty More business struggle

Question 30

Staple industries in depreession

Answer 30

Us overtok on steel, ger on coal (saarlands), india cotton Britain still using outdated labour intensive techniques- hand cut coal Mid 1920s- us over half price uk coal per tonne Steel making to an end in ebbw vale 1929- steelworks in dawlais closed 1930- resulting in 3000 unemployed

Question 31

How gov dealt with depression

Answer 31

Decrease interest rates Means test 1931 Unemp at 1934 Left gold standard 1931 Import duties 1932 Special areas act 1935

Question 32

Decrease interest rates- details

Answer 32

Attempt and encourage to spend and invest Decrease rates from 6.25 to 2% 1929-31

Question 33

Decrease interest rates- sucess

Answer 33

Investment incrase- fund construction boom in south Increase spending- hire purchase cars and vaccum cleaner

Question 34

Decrease interest rates- failure

Answer 34

May not increase unemployment

Question 35

Means test 1931- details

Answer 35

Assess what you need

Question 36

means test sucess

Answer 36

Limited gov spending- balance budget gov not in deficit

Question 37

Means test 1931- failure

Answer 37

Waste of resources0 number of unemployed Decrease consumer spending, made depression worse Cut in consumer spending Dole act 1931

Question 38

unemployment act 1934- details

Answer 38

Set up unemployment assistance boards- uab Unemp benefit rate set national not local Seperate doke from insurance payment

Question 39

Unemp act 1934- sucess

Answer 39

Reverse 10% cut Uab less harsh and severe than officials ran public assessment comm Uab set up training schemes programmes to help to move to another area to another area for work More fair rates- national not local

Question 40

Unemp act 1934- failure

Answer 40

Many didnt want to move Doesnt reflect cost living in area- politicians lack perspectie Many didnt want to move

Question 41

Left gold standard details and sucess

Answer 41

Britian no longer backed by gold Prices exports fall- esp in s and home counties

Question 42

Left gold standard failures

Answer 42

Did so too late Shouldnt have gone in first place Impact minimal as other countries left too

Question 43

Import duties details

Answer 43

1932 Aim protect heavy industry Non-british goods more expensive 20% tarrifs but 33% for cars

Question 44

Import duties sucess

Answer 44

Protect new industry in s and home counties

Question 45

Import duties- failure

Answer 45

Decrease impact, decrease international market and made deppression worse Exports hampered but empire xports increased didnt make much diff Affected cargo shipping

Question 46

Special areas act- details

Answer 46

1935 Aimed to provide help to the worst hit areas

Question 47

Special areas act- sucess

Answer 47

Growth of 2mill£ to encourage companies to invest more in special areas

Question 48

Special areas act failures

Answer 48

By 1938 over £8mill spent- only 14900 jobs created Many industrial areas did not qalify

Question 49

Did british suffer decade depression in 30s- regional- yes

Answer 49

Beveridge- found long term unemployment was found in areas of traditional industry- motor vehicle industry 20% 1932 whilst shipbuilding over x3 Jb priestly- 3 englands with depressed heavy industry- midlands and north- not being added to and has no new life paired into it Merthyr tydfil removes 62% male pop unemployment in 1934 440,000 left wales 1921-38 Galiger 1903 cont epidemic of scarlet fever Special areas act 1934- s wales, tyneside, scotland as areas of special employment requirmenet- sir stewart commisar- ‘generously speaking we have failed’ O’callaghan- two britains- one depressed old industry O’morgan- in wales dpression, trad view, whole society crucified to mass unemployment

Question 50

Britain suffer decade depression in 1930s- unemployment-yes

Answer 50

Labour historian laybawm looks at human traditions of larger scale unemployment and waste of resources that lt seen- didnt need to be as bad as it was Trad historians- ‘devils decade’, tune social deprication and mass unemployment Wall st crash increased unemp 1-3mill 1929-32 Diff to determine extent of unemp in period as lots workers self employed, domestic servants outside of national insurance scheme until 1936- so not counted- may be worese Contantine- lt unemployment rose- 1929 less than 5% out of work for more than a year, by 1933 risen to 16.4% before 1939 halved Means test- lack of generosity and intrusiveness

Question 51

Britain suffer a decade of depression in 1930s- yes jarrow march

Answer 51

200 unemp men walked jarrow to hoc Closure of palemers hsipyward left 72% unemp (compared to high wycome 3% in buckinghamshire) 10,000 unemp Failed but raised national consciousness- led 1945 lab landslide Gained weight on march as being fed- showed how deprived

Question 52

Britain did not suffer decade of depression in 1930s- regional

Answer 52

Se eng new light industries- chemicals, electrical, automobiles had been developed- home counties hampshire eg, 80% new factories set up here and 65% new jobs S vibrant suburban and consumer culture Miles of detached bungalos’ little garages (car ownership), periodicles about film stars, tennis raquets New industry could recover faster eg motor vehicle unemp 20 to 4.8% 1932-1937, whilst shipbuidling 62.2-23.8 Orwell exaggerated in road to wigan pear of level of deprivation in nw england - pearce compared diaries to works and found stories didnt match Glasgow went to pictures at least 1 per week- 80% unemp, or 40% in liverpool Ajp taylor- new industry- ‘was the outstanding course of recovery in the thirties’ Neville chamberlian- recovered to 80% of prosperity

Question 53

Britain not suffer decade of depression- leisure activities

Answer 53

Classless open air activities such as cyling, hiking and rambling in 1930s, relatively prosperous for manyu- gov invested national parks Holiday with pay act 1938 entitled workers to take an annual laid holiday common plae to do so- butlins in 1937 skegness for working class 1938 44% wages on food from 76% in 1914- som more spend on consumer durables 1 bill cinema tickets sold in 1938 20 mill people enjjoy seaside holiday Gambling popular Prestatin for middle class holiday camp 1930s golden age of cinema Houses nicer so spend more time inside with familyu

Question 54

Britian did not suffer depression- lifestyles

Answer 54

Family size fell, more money- married women 1880s 4.8 now 2.14 in 1920s Knwolegde contraception, children no longer financial assets, 3 bed houses, teddy bears, less children dying Hire purchase scheme- boost car ownership Prices down in depression- meant more money for workers- vaccum cleaners conmmonpace, 1200% increase homes with electricity Stevenson and cook increased living standards shown as limited extremism polictially Middle class prosperity with increase bbc licenced 36,000 to 8.97 mill 1922-1939- national consciousness Mass production of cars made more affordable National diet imporved- free school milk in 1934, high propertion of army volunteers judged fit to fight in 1939 than in 1914

Question 55

During war changes made to regulations

Answer 55

Waiving tu regulations for which many unions esp engineers hd struggled so long and so hard Strikes forbidden by law

Question 56

Preparedness general sytrike coal

Answer 56

1926 had enough coal above ground last year

Question 57

Keynes opinion on churchil

Answer 57

The economic consequences of mr churchill - attack on him Ignorant of econ in technical sense Patriotism superceded good negotirations and decision making

Question 58

Twe did econ policy of british gov change in years 1914-39

Answer 58

Unemp Nationalisation/gov intervention in war Land fit for heroes