Britain's Economy 1906-14
- Created by: asho gleno
- Created on: 28-12-16 13:02
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- Britain Economy 1906-1914
- What was it like at the start?
- Greatest trading nation - empire covered 1/4 of the globe
- 1906 - GB + I had 43 million pop
- Employment increasing for m/w in retailing, transport, banking and edu
- Industrial and commercial supremacy being challenged
- Not adapting fast enough to changing eco climate
- Staples
- 1913- eco focused on sraple industries that was basis of the 1st IR
- Textiles (Leeds,Bradford, Lancashire)
- Coal Mining (S-Wales, Yorkshire,NE
- Shipbuilding (Liverpool, Glasgow, Belfast)
- Coal Mining (S-Wales, Yorkshire,NE
- 60% of exports came from textiles, steel, coal + shipbuilding
- B first country to have an IR= lead way in ind in 19th C
- Didn't allow for more room to grow and deal with foreign competition
- 1913- G and A eroding position
- Allowed B to be at the front of industry and dhow dominance
- Didn't allow for more room to grow and deal with foreign competition
- POSITIVE EVIDENCE
- B emerged as key SB nation 1870+ and retained it till WW2
- Cotton trade maintained strong export trade (cotton goods = 1/4 B's exports pre 1914)
- Coal Industry profitable up to 1914 (100 mill tonnes of coal 1870 - 287 mill 1913)
- New Industries
- New Ind was based on new technologies
- Most prominent were electronic engineering, chemicals + motor vehicle production
- They were expanding faster than the economy as a whole (3.8%) - annual growth rate (2%)
- Labour force involved in maj inds 1907:
- Textiles 25%
- Electrical engineering 1.3%
- Agriculture
- Most B land was in large estates, let out to tenant farmers
- These paid rent+gained profit by selling produce
- They in turn employ agr labourers
- These paid rent+gained profit by selling produce
- Estate owners were often in charge of one of several farms and made profit from the sales of its products
- When agr prices were lower with cheap food imports (1870s) landlords lowered rents asfarmers gained less from selling their products
- Agr depressions in late 19th C+foreign competition = wheat growing to other areas like dairy farming, beef cattle
- Seen to be more profitable than crops that ae vulnerable to foerign comp
- Most B land was in large estates, let out to tenant farmers
- Trade and Invisible Earnings
- 1914- 30% of goods and services produced in B were sold abroad
- Still had 25% of the world's trade+dominated the world's shipping
- Invisible exports (exports of services e.g banking, lending money etc) were vital to the economy
- earnings from invisible exports helped ensure that B maintained a healthy balance of payments even though the value of imports were rising eand exports declining
- B was world's leader in banking, investment+insurance (London commercial centre of the world)
- Reliabilityof the Bank of England encouraged countries to invest in B enterprises
- Foreign companies and businesses took out British insurance policies with Britain's merchant banks+insurance houses
- Reliabilityof the Bank of England encouraged countries to invest in B enterprises
- By 1913, 32% of B's total national wealth was in investments overseas
- 40% of investments went to the B empire, USA and South America
- 1914- 30% of goods and services produced in B were sold abroad
- What was it like at the start?
- Most B land was in large estates, let out to tenant farmers
- These paid rent+gained profit by selling produce
- They in turn employ agr labourers
- These paid rent+gained profit by selling produce
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