Impact of WWI on Industry

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  • Created by: Pip Dan
  • Created on: 20-09-17 15:07

Reconstruction

In 1919 the economic system remained buoyant as the high demand and full employment of the war years were followed by a massive restocking boom which, combined with the rapid elimination of women from industrial employment, meant that full employment among men was maintained. The idea of building 'A Land Fit For Heroes' had been a major plank of the Coalition's appeal in 1918, and a number of steps were taken in the area of reconstruction. Already, in 1918, an Education Act had been passed, increasing the school-leaving age from 12 to 14, and making other innovations. The 1919 Housing Act obliged local authorities to survey housing needs in their areas and promised an Exchequer subsidy for council-house building. Rent controls were extended into peace time. The scope of national health insurance was also extended.

Fear of the Left-Wing

Part of the reason of this generosity towards the working class was the government's fear of the potential power of organised labour. The Labour party's formal adoption of socialism in its 1918 constitution, the memory of the recent revolutions in Russia and the massive increase in trade union membership (up from 2.5 million in 1910 to 6.5 million in 1919) all played a part here. Strikes had been frequent in both pre-war and wartime Britain, and there was no marked change in 1919 in this respect. The miners' threat of industrial action was enough to persuade the government to appoint a Royal Commission under Sir John Sankey to investigate reform of the industry, which had been taken under public control during the war. In September 1919, the railwaymen struck and won significant improvements in pay and conditions. And, in many other industries, workers struck for, and won, shorter working hours. The pre-war 'Triple Alliance' of miners, railwaymen and transport workers, by which each promised to support the others in industrial disputes when called upon to do so was revived.

Inflation

Middle-class discontent began to emerge. In particular, inflation soared. Yet this would have to be bought under control, not just to appease erstwhile government supporters, but also to enable Britain to start to move back towards the gold…

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