Depression 1930's

Amercian Markets crash

Effects whole world

Owed US money from WW1

Dawes Plan

Reduction of European Trade

Exports fell by 50%

Run on the banks

Bank reserves threatened 

Macodnald no economist 

No idea how to deal with issue

Econmic Adviosory Council

Balanced budgets 

Huge sums of money on benefits

May Committee 1931 too late

Snowden, Chancellor, maintaing Gold Standard fundamental principles

Balanced budget cutting welfare

Oswald Mosley expansionary government spending 

Social reforms through loans

Radical measures undermine confidence

Create more unemployment

May committee to cyrb expanditure 

Budget defiit of 120m by 1932

Spending cuts amounting to £96.5m

Pay cuts public sector workers

20% cut unemployment benefit

Heavier tax

2 MP's didn't agree with report and created "minorit report" which was ignored

Made financial crisis worse

Emergency meetings to resolve crisis

Macdonald and Snowden implement May Comittie reconmendations

Labour remained divided