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economic crisis in Britain, 1930

2020

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Transcript

BRITAIN DURING THE 1930s

The Great Depression

Maëlle Diot

Index

1.

Introduction

2.

the economic and social impacts of the crisis

3.

The political response to the crisis brought by the British government

4.

the rise of extremist political parties in Britain during the 1930s and their limited influence

5.

the Jarrow hunger march or the Jarrow Crusade

6.

the effectiveness of the measures taken by the British government to end the economic crisis

7.

Conclusion

Introduction

Wall Street Crash in 1929 because of the collapse of the US Stock Market

How did Britain deal with the crisis during the 1930s ?

Beginning of the Great Depression in the USA with a downward spiral

Economic crisis spread in the world because of rising tariffs and debts

Economic and social impacts

Economic

Social

  • long-term problems in old industries (producing raw materials & heavy industries : ship building, coal, steel & iron industries...)
  • loans to pay back to the USA (high debts)
  • unemployment => less workers & ↙ production
  • ↗ poverty => people bought less and saved money
  • High & long-term unemployment : 1 worker in 4 out of job

1933 : 3 M (23% of the pop)

1929 : 1.4 M unemployed

  • ↙ wages => ↗ poverty

"Depressed areas" in Britain

The political response brought by the British government

1931 : a National gvt was set up (PM Ramsay Macdonald) => objective : ↙unemployment + end the crisis

John Maynard Keynes's ideas

VS

traditional view : little state committment, the economy will revive itself

Later followed by Psdt Roosevelt in his New Deal policies

Info

Info

Measures implemented by the gvt

  • ensuring a balanced budget => ↙ public spending
  • ↗tariffs to protect & encourage Britain's industries : The Import Duties Act (10-20% duty), 1932 => AUTARKY & ECONOMIC NATIONALISM
  • The Means Test (amount of assistance based on the household income) + ↗income tax
  • ↙ by 10% the pay of people working for the gvt
  • Ottawa Agreements (trade co-operation with the Commonwealth)
  • Special Areas Act, 1934 (2M$ to companies moving in affected areas)

Back

1931 National Government Poster

Keynesian theory

creation of jobs for unemployed people

↗ public spendings in infrastructures, roads, highways...

↗ consumption & investments

repayment of the public deficit

↗ GDP & ↙ unemployment

The rise of extremist political parties in Britain during the 1930s and their limited influence

some support in the depressed areas but

Communist Party created in 1920

1929-1935 => no communist MPs

Organized demonstrations, hunger marches + provided some food

=> too weak to have an impact & influence

British Union of Fascists (BUF)created in 1932 by Sir Oswald Mosley, inspired by Mussolini

Strong membership (50,000 in 1934) but it dropped (5,000 in 1936) bec. people were against violence

anti-communist & anti-jewish

strong leadership, violence, cult of the heroic leader, parades ... aspects of a dictatorship

the Jarrow hunger march or the Jarrow Crusade : 5-31 Oct. 1936

Hunger marches => publicise the conditions of the unemployed + speed up gvt's measures

But with no huge results...

The effectiveness of the governmental measures

other countries ↗ tariffs => difficult for Britain to export

↙unemployment : 1M at the end of the 1930s

But mainly thanks to the revival of international trade (more exports & policy of rearamament)

some industries took advantage of these measures (motor vehicles & electrical goods) but little effect on old industries

Conclusion

Britain was highly affected by the Great depression in the 1930s on economic as well as social levels

The British government implemented new measures to end this crisis, but John Keynes had his own economic theory

These governmental measures helped a little, but with no substantial improvement

In a weakened world, extremist movements began rising but they didn't succeed in Britain

Thanks

Any questions?