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
1 of 7
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
2 of 7
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
3 of 7
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
4 of 7
PROTECTIONISM
to protect trad industs - only short term - failed to modernise, be competitive and by 1933 shipbuilding unemp 60% // newer industs neglected
5 of 7
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
6 of 7
One of the biggest factors
1936 REARMAMENT
7 of 7
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
Card 4
Front
TAX, SPENDING AND BALANCING THE BUDGET (1922 Geddes Axe)
Comments
No comments have yet been made