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1924 1929-1931
· Moderate policies: By not making policies too · Foreign Affairs: Improved tensions between USA
extreme, MacDonald managed to win over & USSR, agreed on Young's Plan 1929 ­ new
support of public ­ proved Labour was fit to reparations to deal with Germany, Dawes Plan
govern. 1929 ­ reduced Germanys war debt, stabilized
· Domestic policies: Wheatley Housing Act ­ Germanys currency, brought increased
subsidy for houses built by local authorities investments & loans to German economic
increased from £6 to £9, this to be paid for 40 market.
years instead of 20, it enforced that the · Dealing with Naval rivalries: MacDonald
subsidised houses to be rented not sold ­ recognised the increased naval rivalry between
benefitting working class not middle class, Britain & USA badly damaged the relationship
Unemployment benefit increased ­ now no gap between the nations, 1929 - MacDonald
between the two periods of 19 weeks/1 year travelled to Washington to solves the problem,
benefit could be claimed, State scholarships to 1930 ­ conference held in London, relative
universities increases, old age pensions tonnages of each navy decided.
· Foreign affairs: MacDonald was foreign
secretary & Prime Minister.…read more

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1924 1929-1931
· Zinoviev letter: Conservatives published false · Wall Street Crash: Government failed to deal
letters in Daily Mail that showed correspondence with the economic failure of Wall Street Crash,
between Zinoviev and Labour, Claimed Labour October 1929, decisively, MacDonald created 15
had been in contact with & were working with man `think tank' ­ met everyday to think of
Communists, Badly damaged Labours reputation. ways to combat 1929 economic crisis ­
· Ideas of Socialism too utopian: Unrealistic aims of unsuccessful as the `think tank' achieved
how Socialism would be implemented in Britain ­ nothing & wasted time and money ­ should
too optimistic, couldn't be practically have either had tariffs (Conservative support) or
implemented as Labour Governments ideas of Public works (Liberal support), The Government
Socialism were too unrealistic. adopted a `wait and see' policy & just drifted ­
· The Campbell Case: Campbell ­ editor of left-wing when a decision was finally made it split the
newspaper published article urging troops not to cabinet.
fire on their fellow workers (Campbell had been
acting-editor when published and had excellent
war record), September 1924 ­ labour withdrew
prosecution against Campbell, Conservatives
complain Labour was interfering with court of
justice by withdrawing prosecution, Asquith
wanted appointment of a committee of enquiry to
investigate, Macdonald insisted he would resign
(political suicide) if MPs voted in favour of enquiry
­ the majority did, he was naïve, Highlighted
naivety of first Labour Government.…read more

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Successes 1924
Successes 1929-1931
Failures 1924
Failures 1929-1931…read more


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