1922-1929

• 1923 - Bonar Law ill and resigned, Baldwin succeed
• Dec 1923 - general election on tariff reform - fail
• Macdonald first ever Labour MP 1924
• Wheatleys housing made 500,000 houses
• only lasted 10 months Libs withdrew support

• macdonald resigned
• Labour extremism links dominated
• Cons won enough seats and Baldwin PM

Problems:

• staples - unemployment
• 1920s remained 15% unemployed
• Us become world money leader
• US dollar major currency

Positives:

• car production 3x higher by 1929
• service sector grew through road transport and entertainment
• 1920s created 1 million service sector jobs

Cons 1922:

• tariff reform - lost election

Labour 1923:

• trade treaty russia
• Dawes and Young - Germany trade
• Public works

Cons 1924:

• back on gold standard 1925
• broke off russian relation

Results of the policies:

• Labour signed trade treaty but cancelled by Baldwin in 1924
• Public works programme too small and short amount of time
• exchange rates set too high and made british exports uncompetitive in staple industries

economic difficulty and industrial unrest:

• unrest, in coal mines where high injury and death rates
• high costs and foreign competition - reduce wages
• disputed in the coalfields 1921, 1925, 1926 opposing wage cuts
• employers and the govt feared a socialist revolution

• coal iron and chemical
• docks, railways and bus service
• govt sent soldiers to intervene
• warships in clyde, tyne and mersey
• lasted 9 days
• controversial - lockout by employers
• 3 million workers
• TUC no challenge to constitution, Baldwin disagree

Reasons:

• demand for coal fell
• 1913 triple alliance of workers
• 1925 gold standard more expensive exports
• rejected nationalisation and wage cuts from samuel commission
• not a penny off the pay not a second on the day

baldwin failed to prevent:

• no compromise
• abrubtly ended TUC negotiations day before due to daily mail

Impact:

• TUC called off unconditionally - divided TUC
• 1927 Trade disputes - outlaw strikes
• Macdonald refused to involve Labour

• self-inflicted in 1923
• Gold standard 1931
• handling of strike
• however - BBC and housing reforms a positive
• Equal Franchise act in 1928

1929 election:

• Labour 288 seats
• Cons 266 seats
• Liberals 59 seats