Why were so many people unemployed?
- Created by: LBC0502
- Created on: 24-05-14 18:21
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- Why were so many people unemployed?
- Wall Street Crash
- Trigger of depression
- Share prices in USA and investors lost their money
- Affected USA economy and the world because USA was the richest country
- 29th October 1929
- Trigger of depression
- Savings
- People saved money so they wouldn't lose their jobs
- Companies went bankrupt because no on bought goods
- Led to unemployment
- Unemployed had no wages and people bought less from shops
- People saved money so they wouldn't lose their jobs
- Coal
- Other countries mine coal cheaper
- Brtish coal miners didn't want to invest into modernisation
- British coal: £1.56 per tonne. USA coal: 65p per tonne
- In 1929, 18% out of work (national average: 10%)
- In 1932, 41% out of work (national average: 23%)
- In 1936, 25% out of work (national average 12.5%)
- Other countries mine coal cheaper
- Textiles
- Industry in competition with Japan and USA
- 1929-39, British industries reduced in size by 40%
- Wool/cotton declined due to man-made fibres in the 1920s
- In 1929, 14.5% out of work (cotton)
- In 1932, 31% out of work (cotton)
- In 1936, 15% out of work (cotton)
- Industry in competition with Japan and USA
- Iron and Steel
- Less demand for iron/steel to make ships/armaments
- USA and Japan undercut British prices
- USA and Japan plants were more efficient and modernised
- In 1929, 20% out of work
- In 1932, 48.5% out of work
- In 1936, 29.5% out of work
- Less demand for iron/steel to make ships/armaments
- Shipbuilding
- Fall in world trade after WW1 (less ships)
- 1930-33: 1,400,000 tonnes of shipping decreased to 133,000 tonnes
- Internal disarmament (fall in demand for ships)
- Japan and USA produced ships at cheaper prices
- In 1929, 23% out of work
- In 1932, 59.5% out of work
- In 1936, 31% out of work
- Fall in world trade after WW1 (less ships)
- Government Policies
- Allow goods to come into Britain freely (free trade in the 1920s)
- Britain had to pay tax for exports (paid import duties)
- Paid imports to foreign governments
- Allow goods to come into Britain freely (free trade in the 1920s)
- Competition Abroad
- Other countries made goods cheaply and in larger quantities
- Britain used old fashioned methods and out of date industries
- People didn't buy British goods and British exports were declined
- By 1932, 3 million people were out of work in Britain
- British companies such as Palmers Shipyard in Jarrow closed down
- Other countries made goods cheaply and in larger quantities
- Wall Street Crash
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