Britain
1920s/1930s
Economic Problems
Effects of World War One – loss of trade –
debt
Lack of new technology in industry (1920s)
Rejection of large scale government
spending to solve economic problems
Over reliance on traditional industries e.g.
Textiles, Coalmining, shipbuilding
Unemployment – 14% (15% in traditional
industries)
Economic Problems
Economic depression – hit older
industries hard but newer industries
grew at the same time
Structural unemployment – caused by
failure of old industries to change
Cyclical unemployment – caused by
economic slumps e.g. Wall Street
Crash 1929
Results of Economic
Problems
Unemployment black spots e.g. west
central Scotland, north east England
Internal migration – south east
England
Need for government planning
rejected – governments believed that
economic problems would fix
themselves – no British ‘New Deal’
Results of Economic
Problems
Acceptance of large scale
unemployment –benefits were
increased slightly – Means Test
introduced
Protest – Hunger Marches
Government solutions – trade
agreements – effects limited
Economic Recovery
World recovery after Great Depression
from 1935 onwards
Government action – taxes (tariffs) on
foreign goods to protect British
companies
New industries set up – cars, electrical
goods
Economic Recovery
Growth in consumer demand – growth
of Hire Purchase
Private house building boom – growth
in suburbs
Rearmament – response to the threat
from Nazi Germany – stimulated the
economy
Summary
Inter war years – period of distress –
particularly the 1930s – Hungry
Thirties
Unemployment black spots – Dole,
Means Test, Hunger Marches
However South East England
prospered – new industries
Summary
Trade gradually increased
Overall standards of living improved
Gradual decline in poverty
Slow expansion in welfare – social
services