PS2 part 2 Economic issues 1929-1939

Question 1

how many were unemployed in britain by 1931?

Answer 1

2.64m

Question 2

key elements of the depression

Answer 2

• a decline in world trade
• an increase in protective tariffs
• rise in unemployment
• low prices for goods as demand dropped
• poverty for many primary producers throughout the world

Question 3

impacts of depression on britain

Answer 3

• manufacturing profits reduced 30%
• britains economy became more dependent on the empire and internal markets
• worsened the existing unemployment problem

Question 4

what factors mitigated the impact of the depression on britain

Answer 4

• a rise in imports from the empire and continued fall in prices - prices dropped more than wages
• housing boom especiallt in south east around london
• low interest rates encouraged borrowing
• rise of new industries provided work

Question 5

unemployment figures

Answer 5

peaked at 2.8 million in 1932
went down to 1.4 in 1937

Question 6

unemployment act

Answer 6

1934- reorganised unemployment payments and made them easier to claim and collect and abolished workhouses

Question 7

the national governments financial measures

Answer 7

• 1931- economy act made 10% cut in unemployment beneift and salaries
• by 1935 the reduction in welfare spending had been restored to former levels
• 1931- came off gold die to invergordon mutiny
• lowered interest rates from 6 to 2%
• this encouraged private enterprise

Question 8

national governments protection

Answer 8

• neville chamberlains idea copied from his father of imperial preference
• put tariffs on all goods entering britain apart from food
• ottawa conference to decide how imperial preference shoudl wrok
• did increase trade with the empire

Question 9

direct aid to depressed regions

Answer 9

• 1934 special areas act- gave £2m in aid to depressed regions
• 40000 workers encouraged to move into new areas of employment
• subsidies given to farmers and london transport