Successes and Failures of the Labour Government, 1924 and 1929-31

Labour's key successes and failures in both 1924 and 1929-31 :-)

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Successes of 1924

  • Moderate Policies
    • By not making policies too extreme, MacDonald managed to win over public support - prooved Labour were fit to govern
  • Domestic Policies
    • Wheatley's housing Act
      • Subsidy for houses built by local authorites increased from £6 to £9, to be paid for 40 years rather than 20
        • Enforced that the subsidised houses to be rented not sold - benefitting working class
    • Old Age Pensions increased 
  • Foreign Affairs
    • MacDonald was foreign secetary & PM
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Failures of 1924

  • Zinoviev Letter
    • Conservatives publish false letters in Daily Mail that showed communist agitation in Britain and helped insure the fall of the Labour government of 1924
  • The Campbell Case: September, 1924. Campbell - editor of the left-wing newspaper published  article urging troops not to fire their workers
    • Labour withdrew prosectutions against Campbell
      • Conservatives complain that Labour were interferring with Court of Justice by withdrawing
        • Asquith wanted appointment of a committee of enquiry to investigate
          • MacDonald insisted he would resign (political suicide) if MPs voted in favour of the enquiry - majority did.
            • MacDonald was naive - highlighted the naivety of the first Labour Governemnt
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Successes of 1929-31

  • Foreign Affairs
    • Improved tensions between USA and USSR
      • Agreed on Youngs Plan, 1929
        • New reparations to deal with Germany
      • Dawes Plan, 1929
        • Reduced Germany's war debt, stabalized Germany's currency, brought increased investments & loans to German economic maket
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Failures of 1929-31

Wall Street Crash, 1929

  • Government failed to deal with the economic failure
    • Unsuccessful as the "think tank" did nothing and wasted time & money 
      • Should have either had Tariffs (Conservative support) or Public Works (Liberal Support
      • The government created a "wait and see" policy, and just drifted 
        • When a decision was finally made, it split the Cabinet
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