Economic Recovery in the 1930s AS History Mindmap

A mindmap on economic recovery in the 1930s under the National Government, and their financial, industrial and trade policies!

HideShow resource information
View mindmap
  • Economic Recovery in the 1930s
    • The government aimed to balance the budget and limit spending
      • Cuts helped maintain international confidence but lowered demand for goods and services, so unemployment rose. The Gold Standard was abandoned.
      • Wages and benefits were affected, the latter by a reduction of 10% and the introduction of a means test.
    • Interest rates were lowered to 2% in 1932, making "cheap money" available.
      • There was a house-building boom as people could afford mortgages, with over 2 million new homes built and work created in building and furnishing.
      • There were less council houses built- only about 700,000 during the whole decade.
    • Britain came off the Gold Standard in 1931 and so the pound fell in value
      • Britain sold more exports to the empire now they were cheaper, but this only party made up for a lack of demand from Germany and the US.
    • A "sterling area" was set up with members using the pound rather than gold
      • More exports were sold but it was limited as other countries introduced protective tariffs or also left the Gold Standard.
    • The Import Duties Act 1932 set up tariffs to protect British industry and agriculture, with exceptions for empire countries
      • An Imperial Tariff System was agreed in 1932 at the Ottawa Conference
    • Trade treaties were made with various countries, allowing a quota of their imports in exchange for a similar number of British exports.
    • Industrial policies aimed to combat unemployment
      • The Special Areas Act 1934 provided government aid to the most depressed areas but it only provided £2 million and many did not qualify
      • The Cotton Industry Act 1936 closed down unprofitable cotton mills to reduce surplus. This allowed the profitable mills to do better but closures had a huge effect on industrial areas and unemployment rose
    • The British Shipping Assistance Act 1935 provided loans to scrap old ships and build new ones
      • The North Atlantic Shipping Act 1934 provided loans to help restart the building of the huge liner the Queen Mary
    • Marketing boards were set up for milk, bacon and potatoes to set prices, and subsidies were provided for sugar beet growers and livestock farmers.
  • Britain sold more exports to the empire now they were cheaper, but this only party made up for a lack of demand from Germany and the US.

Comments

No comments have yet been made

Similar History resources:

See all History resources »See all Modern Britain - 19th century onwards resources »