Economic changes before the 1920's
- Created by: lyd_kate
- Created on: 12-02-18 14:31
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- Economic changes before the 1920's
- WW1
- Post War Boom
- Ex-servicemen put a lot of money into economy
- Restricted British goods demanded briefly
- Soldiers back in economy, at expense of women
- Exports at £1585m 1920, only £637m 1913
- Benefited Germany = hyper-inflation
- Inflation, domestic d high. Easy credit gains. Also housing reforms
- Long term impact of war
- By 1921, demand fell
- Primary good prices fell output had risen 30%,
- World production too high to be profitable, less money for ROW to buy
- Less demand for ship building, little concern for productivity. Mines not cost effective
- Only 3% of exports protected by Safeguarding of Industries Act
- Less demand for ship building, little concern for productivity. Mines not cost effective
- Loss of world trade meant no financial sector boom
- Centre now USA
- World production too high to be profitable, less money for ROW to buy
- World trade decline = time lag.
- Over production
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