1
Q
increase in employment between 1918 and 1920
A
- 9 million extra workers found jobs although 500,000 women left the work they had taken before the war
- post war boomed was short lived, collapsing in 1921
2
Q
which areas experienced high levels of unemployment in the 1920s and the depression in the 1930s?
A
- South Wales
- NE and NW of England
- Northern Ireland
- clydeside
- they had the old staple industries (iron, steel, textiles especially cotton and ship building)
- the impact was heightened due to the geographical concentration of these industries/ there were simply no other jobs because the traditional industries had been so dominant
3
Q
which areas didn’t go into decline during the 1920s?
A
- unemployment wasn’t seen throughout Britain
- the Midlands and south of England that specialised in electrical goods, cars and chemicals
- they experienced a rise in real wages (the purchasing power of earnings when set against prices- If prices are high money will be less) , employment in new industries, improvements in healthcare, education and housing.
- this was fuelled by the McKenna duties and the safeguarding industries Act
- the skills of workers had been adapted to this and could meet demand for convenience and leisure goods
4
Q
why was there a decline in heavy industries?
A
- international disarmament meant reduced size of navies. this affected the ship building industry (had managed to maintain 40% of its work output in the 1920s but only 7% in 1933)
- growth in international competition of the 1920s meaning Japan and the USA were producing goods at for lower rates (e.g. coal) undercutting the price of home produced goods.
- onset of the depression caused steel to fall by 45% in 1929
- refused tariff protection
- differential pricing meaning produces could sell the same good to different customers at different prices
- immediate investment post war to resort staple industries meant many become overcapitalised meaning more shares had been issued than its assets worth.
5
Q
safeguarding industries Act 1921
A
an act intended to protect strategic industries against foreign competition (e.g. optic glass and synthetic chemicals)
- these had been vital during WW1
- in these cases a tariff of 33.3% was levied on foreign imports, the tariff to last for five years
6
Q
McKenna Duties
A
- intended to be temporary snd impressed during the war
- put 33.33% tariff on importing commercial vehicles
- remained in place until 1956 giving help to British Moto industry.
- Reginald McKenna was home secretary in 1915 and introduced a series of tariffs. originally this excluded commercial vehicles because they were needed in wartime but in 1936 was extended to include them.
7
Q
what did the war do to trade?
A
changed the structure of it
-Britain’s role at the centre of the financial word had been challenged by the USA
-the gold standard which had been the basis of trade prior to 1914 collapsed
in April 1925, Britain went back on the gold standard but this was done at a time when the price of gold was high making British exports more expensive
8
Q
gold standard
A
the value of a current defined in terms of the price of gold, for notes and coins could be exchanged
-currencies therefore fixed against eachother
9
Q
why was Britain so affected by the depression?
A
- USA was Britain’s biggest trading partner limiting their market
- the income made from US trade was the may way Britain raised funds to repay FWW debts meaning the government could no longer meet their repayments
- britain was owed money by most of the FWW allies but this wasn’t being paid
- return to cold standard exacerbated this
10
Q
DID the depression cause a country of two nations?
A
- unemployment 3 million especially in the north
- USA stopped trading
- perception of the north differed to the south, mutual lack of understanding
- London based parliament that was struggling to manage the economy and a turbulent nation
11
Q
DIDN’T cause a country of two nations
A
- old industries were delving anyway due to disarmament and technological advancements
- gov failed to prose t the north, tariffs tailored towards the south
- cyclical unemployment die to nature of northern industries
12
Q
consequences of a country of two nations
A
- massive regional disparities
- overpopulation
- increased come and so poor perception and less more obligation for those wanting to help
- drain state welfare funds
- protests/marches
13
Q
Rowntree’s second study
A
- in the years 1935-36 carried outa second study of poverty in York using a glitchy more generous poverty line
- 31% were shown to be living in poverty
- in 1899 the main cause was low wages yet in the 1930s it was unemployment
- Tout came to similar conclusions in Bristol
- unemployment benefit was usually between 45 and 66% of a man’s previous wage
14
Q
unemployment benefit
A
-paid out of the national insurance and was intended to help working people get through a few weeks, originally 15, while they looked for a new job
15
Q
what was the jarrow march?
A
- October 1936
- mass unemployment and poverty drove 200 men to march 300 miles form the Tyneside Town of Jarrow to London
- 27 days
- they carried a petition signed by 11,000 people and intended to present it to parliament requesting the establishment of industry in Jarrow
- important secondary objective was to generate sympathy by showing that they were law abiding responsible citizens through the way they march. medical fit men were selected for over 1200 volunteers, women not invited. blessed by the bishop
- just a local affair and wasn’t representative of a particular political persuasion
- from each town they visited they collected financial statement to compare to Jarrow’s human development and poor law rate
16
Q
what triggered the jarrow March?
A
- the closure of Palmer’s shipyard the moan employer of labour in the area
- acquired by NSS in summer 1934
- 75% of people left unemployed
- in the background was the NSS (National Shipbuilders Security) a company created by the government to buy up failing yards and dismantle them so that production could be focused on smaller more profitable ones
17
Q
what was T Vosper Salt’s reaction to Jarrow
A
an American investor
- convinced that with its existing rail networks, docks and labour force it was the ideal place for steelworks
- the feasibility study he financed supported this
- Yet the British Iron and Steel federation was less enthusiastic saying steel production could be increase through the existing works and this put pressure on London’s financial institutions to not back the scheme
18
Q
support for the jarrow March
A
- at some stopovers in the south the marchers were greeted warmly and provided with accommodation, spare clothes and food, at others bed in workhouses were all that was offered
- the general public turned out line the route of the marshy in their thousands
- the October Labour Party conference held in Edinburgh wasn’t supported. Wilkinson was criticised for doing hungry and poorly clothed men that would tax their strength without any appreciable outcome
19
Q
Trade Unions Congress
A
an umbrella group for the trade unions in Britain. individual unions weren’t obliged to follow their advice yet they usually did
- represented a powerful voice for organised labour
- TUC and the Labour Party Branches not to offer ant assistance or support to the marchers although they often ignored this advice.
20
Q
Bishop of Durham for Jarrow March
A
Hensley Henson
criticised Bishop of Jarrow for blessing the march saying it was nothing more than a mob pressure designed to support the about party
21
Q
why was the Jarrow March unsuccessful
A
- the petition was only discussed by parliament for a few minutes, nothing came of it
- the Jarrow marches retuned home empty handed nothing in the short term. there Idle had been cut because they weren’t available for work even though that hadn’t been any available as to claim unemployment benefits you had to be available in the town
- TUC and LP advised people not to help them
- poor time to negotiate with government due to abdication of the kind happening at the same time which distracted Westminster
22
Q
why was jarrow march successful
A
- generate sympathy (law-abiding citizens)
- encouraged people from towns along their route to take action, more widespread
- good publicity as between 3000-50,000 journalists were estimated throughout the march
- helped to form positive perceptions of northern areas paving the way for post 1945 social reforms
23
Q
what was the NUWM?
A
national unemployment workers movement
-set up by Walter Hannington in 1921 who was an effective arm of the British communist party.
aims:
-destroy capitalism
-solidify the rights of the unemployed
-draw sympathy to cause change in people’s attitudes.
24
Q
successes of the hunger marches
A
- fact that spies were used in 1936 shows government saw them as a substantial oppositional force
- media attention due to the violence bestowed helped to achieve sympathy as government was presented as the aggressor.
- marches increased significantly in their size and the way in which they acted showing they created a substantial force and felt compelled to act
- marches came from varying areas united in their cases - uniform consensus to change
25
failures of hunger marches
- no legislation or action was taken and so they were fundamentally unsuccessful
- reinforced negative stereotypes of workers, barbarian snd having Communist sympathies
- government response but negative so attitudes didn't change positively
26
why was the response to hunger marches different to jarrow?
- link to political ideology in the hunger marches
- threat of the abdication of the king which was seen as immoral compared to the righteous family actions of -Jarrow-first two marches not backed by an MP perhaps to acting as to avoid government discontent. whereas jarrow was backed
27
Welsh hunger march
- 1927
- example of divided leadership
- started as a protest against the limitations on unemployment and the impact this was having on families
- marches selected to march to London on 8th November to coincide with the opening of parliament
- yet by the time November came the executive of the miner's federation had changed their mind partly because of opposition from the TUC
- the NUWM remained steadfast unsurprisingly in their support and 270 miners marched to London
- local trade councils supported along the way but TUC and government remained hostile
28
1932 Hunger march (ended October 27)
- angered by the imposition of the Means Test, the NUWM organised a national hunger march
- involved coordinating about 3000 people marching to Hyde park in London from 18 starting points mainly depressed areas in Scotland, SWales and NEngland
- aimed to present a petition to gov containing over 1 million signatures
- gov drafted in 2000 extra police concerned about law and order, led to violence breaking out
- Hannington arrested and the police confiscated the petition
- although the marches received little publicity on their way to London, the rioting that continued for serval days did hit the national press and generated questions in parliament
29
means test
introduced s an emergency measure by government in 1931
| -this was a household test whereby all income coming in to a household was taken into account before benefits were given
30
the use of spies in the hunger marches
- spies were trained and infiltrated the NUWM, regularly reporting back to their handlers
- in 1934 parliament passed an Incitement to Disaffection Act making it a criminal offence to seduce any member of his majesty's forces (inc police) from his duty of allegiance as well as giving the police greater powers of search
- many arrested during and after the hunger marches were done so on these charges
31
1936 Hunger march
- demonstrations led by the labour party and clement Attlee addressed the crowd of some 12,000
- whilst this was good backing it was only self to some extent as the conservatives were the dominating political party of the time and therefore the ones who could make change so little legislation was passed
- this was joined for a short time by the jarrow marches
- last demonstration for NUWM as after 1936 focused on helping thousands of individuals and their families find their way through a maze of benefit regulations
32
who was Ellen Wilkinson and what did she do in earlier years?
- known as red Ellen due to her red hair and left wing politics.
- selected as general labour candidate for Jarrow inspiring her to lead a deputation in 1934 of Jarrow's unemployed to meet with PM.
- They received sympathy but no promise of help any different to what was available nationally and no assurance of reviving heavy industry
- had been a district organiser for the National Union of Women's suffrage societies and the first female organiser of the amalgamated Union of Cooperative employees (AUCE)
- in 1929 was appointed parliamentary private secretary to the minister of health but lost her seat in 1931
33
what did Wilkinson do in the commons?
- fought hard to alleviate poverty
- presented the petition in the Jarrow March. Wilkinson was assured by Runciman that the employment position in Jarrow had improved and the marchers were sent home by train. Both gestures were regard by many MPs as act of supreme complacency.
34
what did Wilkinson do after the war and for education?
- in October 1945 she visited Germany to report of reactivating their education system and chaired the international conference that fomented UNESCO
- her time in office was marked by persuading parliament to pass the school milk act 1946 which gave free milk to school children, improving the school meal service, and initiating the raising of School leaving age to 15
35
PM for this period
Ramsay MacDonald
| 1929-1935
36
why was it difficult to act against poverty in the 1930s
- WW2 brewing creating more pressing issues, rise of Hitler and other fascists
- Depression
- scale of poverty
- foreign investors had started to withdraw money from London banks (between 15th July and 7th August 1931 £33 million in gold withdrawn) they were worried about the collapse of giant Viennese banks
- balancing the annual budget was providing difficult if not impossible (most people unemployed, greatest need for relief yet lowest funding available due to less tax)
- rearmament of nations
- constitutional crisis
37
what did the second labour government do 1929-31
- chancellor of the exchequer, Philip Snowden set up a committee to advise on what could be done to reduce national spending. This was headed by Sir George May
- July 1931 the May report was produced
- the report calculated that £120 million was needed ti balance the budget, £23 million could be found from increased taxation and £97 million from cuts to gov spending
38
first labour government of 1924
- lasted for nine months and was brought down by a potential political scandal
- the second about government lasted for longer but was brought down because of cabinet divisions over cuts on government spending
- like the first the second was dependent on its survival form the support of the liberal party
39
May Report recommendations
- reduction in teacher's salary by £14 million
- reduction in police pay by £1million
- post posing road schemes by £8 million
- cut unemployment Benedict by 10%
- reduction in armed services' pay by £2million
- Britain should come off the gold standard causing the pound to drop in value. this would make Britain's exports cheaper and therefor emote commotion in the world's markets
40
controversy about the may report
- cutting unemployment benefit was extremity controversial
- Snowden suggested that this particular benefit should not be protected when there were cuts elsewhere
- however over half the cabinet could not cut this benefit they argued the unemployed had suffered enough
- a delegation from the TUC lent considerable support to Henderson's plea who acted as a spokesman for those who didn't want employment benefits cut
41
what did Maynard Keynes say to the May report
- come off the gold standard for given reason
- this would lower the balance of payments (difference between a country's earning through exports minus payments for imports) deficits and ease the financial crisis
- this would also mean the bank of England wouldn't need to deplete its gold reserves supporting the pound. Ernest Bevin was the only cabinet minister to support this theory despite it being the only correct one in hindsight.
42
influence of Keynesian theory of economics
- 1920s believed in the quantity theory of money (if money circulating increased prices would rise proportionally) this meant he proposed state intervention to stabilise prices
- after 1929 supported theory of liquidity. firms fearing for the futures would hoard money leading to less investment and a rise in unemployment
- gold standard 1931
- published Keynes theory of employment, interest and money in 1936
- ironically it was rearmament that provided the greatest catalyst for the regeneration of heavy industry along the lines suggested by Keynes.
43
outcome of labour government
- only cut back spending by 56 million which wasn't enough
- he resigned his government as it was divided and couldn't function
- he was accused of betrayal to the labour party and plotting to retain personal powers
- expelled from the party
- intention to help wasn't necessarily even there
44
national government
- coalition government made of labour, liberal and conservative members
- set up in 1931 after Ramsay Macdonald had resigned his about government
- conservative majority but led by a Labour representative
45
first action of the national government
cut spending
-teachers pay by 15%
-armed forced judges and MPs by 10%
-police pay by 5%
unemployment benefits by 10%, a reaction in the time these benefits would be paid and a reduction in the dole by 10%
-increased taxation
-yet this caused upset as different workers were facing different curs (e.g. sailors incident creating an Invergordon mutiny) that was telegraphed around the world causing the value of the pound to plummet
-this left the government unable to negotiate any more loans and forced them off the gold standard
-however this did allow for more exports as they were cheaper and therefore the budget easier to balance
46
the 1931 election
- national gov was unelected and so called fro an election in October 1931
- the campaign was bitter and personal but demonstrated nationwide support for the national government
- conservative had 556 seats, labour just 56
47
other factors that helped the national government
- mid 1930s there was a general recovery in world trade, with the weak pound this made British goods cheap to buy abroad
- liberal party had been split between Asquith and Lloyd George in the early 1920s limiting opposition and the about party was still suffering from summer 1931
- rearmament production boomed
- chamberlain utilised these introducing a general tariff barrier by 10%
- between 1931 and 1935 the British agricultural industry increased in productivity by 15%
- public salaries were rested to their pre 1931 levels
- low interest crates led to a housing boom creating jobs and a feel good factor
48
unemployment act
1934
- set up a national unemployment assistance board
- this standardised dole payments made when a persons 26 weeks entitlement to unemployment benefits ran out
- was paid through a mean test
- this was fiercely enforced by district officers and was deeply unipolar amongst the unemployed
- rates were set nationally so couldn't vary according to local circumstance
- protests started as some found new scales being applied to regions were sometimes less generous than those being applied by their own local government
- forced government to agree that the new scales wouldn't be introduced until July 1936
49
Iron and steel federation
- 1932
- backed by government
- supervised the demolition of old, unprofitable works and build new ones to create jobs
50
special areas act
- 1934
- applied to regions of high unemployment
- gov financed projects (e.g. Steelworks at Ebbw Vale)
- this went some way towards creating new jobs however by may 1939, only 273 factories had been established under this scheme employing 8500 people
- the total number of people employed in 1939 was over 225,000
51
1935 scheme
- shipowners could apply for government loans which would allow them to scrap old ships and build new ones
- e,g, allowed Cunard white star line to order two new liners the Queen Mary and Queen Elizabeth from John Brown's shipyard on the river Clyde
- this created work for unemployed
52
which schemes were the best
- shipowners and iron and steel
- then special areas act
- unemployment act last
53
why was national government more successful than the labour
- targeted old industries
- provided a framework and reforming rather than just making cuts
- recovery was helped by other factors that had little to do with the gov itself
- see other reasons
54
conclusion
the significance of the slump and depression for Britain was far reaching
- impacted the economy, caused a north south divide, caused the collapse of staple industries and a resultant mass of unemployment
- after 1937 chamberlain's skills and interests lay in the fields of administrative and social reform yet his main fest of Hitler was ironically what meant Britain's unemployed returned to work.
A level History
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