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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