KQ4 - National Government Policies
Devaluation of the Gold Standard - 1931 :)
The pound fell in value by 20%. British Exports made cheaper and more competitive.
Low Interest Rates - 1931 :|
Rates lowered from 6% to 2%. Stayed like this for 7 years. Didn't create much business investment, but would have helped in some ways.
Expenditure Cuts To Balance Budget - :|
Government expenditure cut by £70 million. Unemployment benefit cut by 10%. Income tax raised 22.5% - 25%. Loan form abroad was negotiated. Didn't counter depression.
Transfers and Work Schemes :(
44,000 encouraged to move, 30,000 put on courses. Was not a large amount.
Protection - :(
Import duties were imposed, but these had no real effect of economic recovery
Special Areas - 1935-7 :(
Only 50,000 jobs created, and some areas of need were not designated.
Unemployment Act - 1934 :(
Unemployment benefits overhauled but the means test remained. Not on the scale of other countries.