ECONOMY, 1918-39

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1920s 3 OF THE KEY DOWNFALLS
Loss of Trade: WWI failure to export and the rise of other countries // Debt: war cost £3.25 billion, debts of £8billion // Val of Pound: printing money to cover war = inflation
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KEY 1920s DATES
1920-21: Recession (trade and underinvest in trad industs) // 1922: Spending cuts, limited help, unemp at 10% // 1929: Great Depression, trade collapse & unemp
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INEFFECTIVE SOLUTION: INTEREST RATES AND VAL OF POUND (1925 Return to Gold Standard)
tried to curb inflation by high interest rates & raise val of pound = people likely to save and £ overvalued by 10% than $, + US low interest = them more appealing // RETURN TO GOLD STANDARD 1925
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TAX, SPENDING AND BALANCING THE BUDGET (1922 Geddes Axe)
to help with war debts = raise taxes each year (1919 £18 per capita to £24 in '22) // 1922 Geddes Axe, £24mill cuts = contribute to unemp, never fell below a mill
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PROTECTIONISM
to protect trad industs - only short term - failed to modernise, be competitive and by 1933 shipbuilding unemp 60% // newer industs neglected
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HUNGRY 30s KEY POINTS
1931: pound devalued = 50% fall in exports and unemp // Nat Gov removed from G.Standard: quicker recov, unempl fell, housing boom and cheap exports AND indust produc +46%// 1933: Unemp rose 2.5 mill, 25% w.force
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One of the biggest factors
1936 REARMAMENT
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Other cards in this set

Card 2

Front

KEY 1920s DATES

Back

1920-21: Recession (trade and underinvest in trad industs) // 1922: Spending cuts, limited help, unemp at 10% // 1929: Great Depression, trade collapse & unemp

Card 3

Front

INEFFECTIVE SOLUTION: INTEREST RATES AND VAL OF POUND (1925 Return to Gold Standard)

Back

Preview of the front of card 3

Card 4

Front

TAX, SPENDING AND BALANCING THE BUDGET (1922 Geddes Axe)

Back

Preview of the front of card 4

Card 5

Front

PROTECTIONISM

Back

Preview of the front of card 5
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