British economy - pre world war two

headings for socio economic difficulties in britain

• explain issues post ww1

• inflation (explain it)

• mass unemployment

• britain, and why it specifically had an issue

• samuel commission

• strikes

• national wages board, trade disputes act

• sudden revival and then wall street crash

• depression - explain

• protectionism, ramsay mcdonald

• how structural unenployment continued after depression

• jm keanes

• structural unemployment

• jarrow march

  • causes

  • course

  • attempts to save

  • the march

  • impact

  • why it failed (+ john jarvis)

  • its small successes

  • turnout

  • social changes

jarrow march essay headings

• causes

  • shipbuilding post ww2, inflation, structural unemployment

  • protectionism helping everything but those in jarrow

• course

• attempts to save

• the march

• impact

• why it failed (+ john jarvis)

• its small successes

• turnout

• social changes

european / british economy post ww1

• major economic and social instability

• inflation and unemployment led to people demanding that the governments must imrpove and increase social services

• economic terms, first world war was massively expensive for britain

what is inflation (specifically during ww2)

• rise in prices as a result of a fall in the value of money

• during ww1, vast sums of money had been borrowed by countries in europe to finance the war

• inflation swept away the previously healthy currencies, and prices were THREE TIMES HIGHER IN 1920 IN BRITAIN THAN BEFORE THE WAR, AND FIVE TIMES HIGHER IN GERMANY

  • workers began to resent gap between working class and wealthier classes

why did britain in particular have economic issues post ww1

• first country to industrialize, economic prime had ended, no longer had a monopoly over staple industries as other countries industrialized (eg industries like steel and shipbuilding)

• steady decline of these industries led to serious unemployment during the 1920s

What was the samuel commission, what did it do, what did it lead to

• 1925

• established to investigate industrial relation issues in coal mining industry (which coupled with the coal industries existing issue that the best coal had been mined, and that the market had dried up after the war)

• the british goverment had predicted that the workers would strike, and had made the samuel commission to delay it so as they could prepare for the strike

  • samuel commision subsidized employees wages when employers wanted to cut it

• recommendation that miners should work an extra, unpaid, half hour, aswell as take a pay cut led to general strike led by aj cook in 1926 that lasted 9 days

• the trade union council called over 2 million workers to take part in a national strike in may 2026

  • however strike had small impact, goverment preparation had soldiers, police, students and other volunteers ready to unload ships, distribute goods, keep transport systems moving, and even had its own paper - the british gazette, in the workers absence

• Strike ended on may 12th following creation of national wages board

• 1927, the trade disputes act was passed, banning sympathy strikes

  • this was supported by both sides as there was a reluctance from everyone to do such a strike again

how did the british goverment keep the british economy moving during the national strik

• goverment preparation had soldiers, police, students and other volunteers ready to unload ships, distribute goods, keep transport systems moving, and even had its own paper - the british gazette, in the workers absence

how many workers took part in the national strike? who told them to?

over two million, trade union council

when was the samuel commission formed

1925

when was the general strike, who led it

1926 - aj cook

who was aj cook

strong willed lad who led the general strike, quote “not a penny of the pay, not a minute on the day”

when was the national strike, how long did it last

may 1926, 9 days but coal miners kept going for 9 months (however not every coal miner went on for 9 months, most went back to work)

strike ended may 12

when and why did the national strike end

• may 12th 1926

• national wages board created

what law was passed fter the national strike? why? what did it do? when?

1927, trade disputes act banned sympathy strikes

wall street crash

1929

• late 20s brought some economic recovery to britain

• UNEMPLOYMENT FELL TO ABOUT ONE MILLION AS NEW INVESTMENTS AND TRADE REVIVED

  • sudden end with collapse of wall street stock exchange in 1929, onset of the great depression

explain the depression in general

• recession that doesnt end for years

• in economic slump, oversupply of products and not enough money to go around

• factories close, unemployment rises

when an economy fails to climb out of an economic slump over a number of years, tis called a depression

explain the depression in britain, and explain what britains response to it was

• Unemployment rose sharply, 1932, 2.7 million were out of work

• national government under Ramsey MacDonald took office in august 1931, and succeeded in stabilizing the economy though protectionism

  • imposed import duties (import duties bill feb 1932 - duties on certain imports, protected british manufactures and ended free trade that had been followed since 1846)

  • bank interest rates lowered from 6 to 2% - stimulating house building as mortgages were cheaper

  • tried reviving steel industry - tarriffs on foreign steel, british iron and steel federation formed

what was protectionism

economic policy designed to protect home industries by imposing taxes (tarriffs/duties) on imported goods

raised price of cheaper, imported goods in order to encourage buyers to spend money on home goods

Protectionism bills - what, when

Import duties bill feb 1932

• duties on certain imports, protected british manufactures and ended free trade that had been followed since 1846

Bank interest rates

• lowered from 6% to 2% to stimulate house building as mortgages were cheaper

Steel industry revival

• Tariffs on foreign steel

• British iron and steel federation formed

• steelworks stablished and corby and ebbwvale

  • criticized for not allowing steel plant in jarrow, where unemployment was highest in country

national governemnt who and when

ramsey macdonald august 1931

unemployment figure in post depression

1932, 2.7 million out of work

1933 what happened

• worst of depression is over

• new industries thriving (finance)

• structural unemployment continuing, especially ude to a lack of tradition in areas of emigration

jm keanes

• most influential economists of interwar period

• economic advisor to british govt at versaille, however was not widely listened to as he was a major critic of the german reparations

• advised british govt after war

• argued against belief that economic market can bounce back after recession independently

• said public works to create jobs and stabalize economy best

• general theory of employment, interest and money in 1936

  • 
    

Unemployment continuing in some areas, and not in others

end of 1936, unemployment fallen to 1.4 million

midlands and south economies improved drmatically, due to arrival of industries such as car manufactoring in coventry and oxford

unemployment continued and was concentrated in areas that had industry reliant on industries like coal and shipbulding (areas in the north of england, scotland and wales)

1934 - 68% of jarrow, 62% of merthyr tydfils workforce unemployed

1936 unemployment figure

1.4 million

unemployment figures in struggling areas post economy starting to restabalise in the north

1934

68% of jarrow

62% of merthyr tydfils workforce

when was the jarrow march

october 1936

causes of the jarrow march

• the hungry 30s

• decline in shipbuilding in britain

• failure in attempts to revive the industry

• overreliance on palmers - palmersville, statue

  • palmers outdated practices

explain the hungry 30s

• economy took a while to recover nationally after wall street crash

• most areas showed signs of recovery by 1933, except areas with structural unemployment

• 1931 - means test introduced, income of the whole family was taken into consideration before someone qualified for the dole

  • dole lasted 26 weeks, 1931, tole was reduced by 10%,making life even harder in areas impacted by structural unemployment

reasons for the decline in shipbuilding in britain

• 1890s, britain had monopoly of shipbuilding trade (80% of the market)

• 20th cntury other countries were competion, british share declined

• in 1892 81.7% of ships were build in the north eat of britain (along the river thyne and weir) in 1934, this had fallen to 6.8%

• had employed 100,000 in 1921, in 1931, had fallen to 30,000

  • palmers bad planning

unemployment figures in shipbuilding

• in 1892 81.7% of ships were build in the north eat of britain (along the river thyne and weir) in 1934, this had fallen to 6.8%

  • had employed 100,000 in 1921, in 1931, had fallen to 30,000

palmers old fashioned ways

• open air workshops

• wet days when it was rainy as work couldnt get done

• rivets instead of welding

• did not want to change work practices, trade unions didn’t allow it

palmers bad planning

• invested heavily in jarrow despite decline in shipbuilding industry, over optimistic outlook of future of the industry

what were the attempts to save the ship building industry as a whole

• shipbuilding employers federation under sir lithgow formed

• implemented scrap and build plan to restore profits, aswell as shut down struggling shipyards

• march 1929, national shipbuilders security, a holding company took over struggling yards and began to shut some to avoid overcapacity

• 1933, took palmers in jarrow, shut the company in 1935, resulting in an unenmployment rate of 72.9%

impact of the jarrow march

300 mile march attracted attention of the public and all major newspapers

reality, very little could be done for jarrow

companies that closed the shipyards banned the areas from engaging in shipbuilding for a period of 40 years, to prevent foreign investment and then competition

iron and steel federation blocked opening of american owned iron company

why was the jarrow march needed

• tb and child mortality rates sky rocketed as unemploymented went up

• the general upkeep of jarrow declined as people lost the money to do so

• soup kitchens opened

explain how bad timing effected the jarrow march

• more pressing issues

  • hitler dismantling treaty of versaille, occupying rhineland in 36, remilitarizing

• too many marches diluted impact, jarrow march was one of four marches at the same time

  • national hungar march

  • league of blind march

  • veterans march

• baldwin was conservative majority government, didnt need to worry about losing a vote in parliament

• saw marches as nuisance

• thought if they gave time to it, theyd have to give time to the others

stanley baldwins conservative majority figure

conservatives 387/national labour 20)

what did john jarvis do

• meeting in london on 3rd november

• shocked organisers of the march by saying he intended to open a steel plant in jarrow thatd “employ hundreds but might lead to thousands”

• british public ran with it, and thought jarrows troubles were open

• factory opened, only employed 700 workers

how did the government fuck over jarrow even more

• shut down the labour exchange in jarrow, amalgamated it with hebburn, which had a better employment figure due to its major electrical factory

• brought unemployment down from 72.9% to 39% - made the figures look better, without any real change

jarrow marches small successes

• became a symbol of government inaction and working class fortitude

• changed attitudes by highlighting difficulties faced by working class

• paved the way after the war for the idea that the government must take some responsibility for wellbeing of citizens

• led to the beveridge report in 1941, which introduced the welfare state and benefits such as housing, social welfar

aftermath of the jarrow march

• 1937 - unemployment in britain fallen to 1.4 million

• conditions in depressed areas continued to deteriorate

• recession in 1938 caused a rise in unemployment again, rose to 1,8 million

• government had no strategy for reducing long term unemployment, so problem continued until 1940 when britain began to rearm

social changes in britain during interwar period

• unemployment insurance act 1920

  • increased unemployment benefits from 7 to 15 shillings a week for up to 15 weeks per year

  • scheme included most workers with income under 250 pounds a year

  • two thirds of work force now insured against unenployment

• 1921, lloyd georges govt further extended that act, now paying those benefits for two 16 week periods per year

What happened DURING the jarrow march

• 300 miles towards london

• organized by town council and labour mp ellen wilkinson

• ellen wilkinson presented a petition calling on govt to introduce measured to alleviate hardship

• stanley baldwin refused to meet them

why was it called the jarrow crusade and not march

• called the march a crusade to set it apart from hungar marches that had happened prior

who supported the jarrow march

• supported by conservatives and labour, aswell as the church

• exception of the bishop of durham, who accused them of using revolutionary mob tactics

when did the jarrow march end

4th of november

why was she called red ellen

• red ellen as she used to be a communist, but they ran with the story that hte name came from her apparently auburn hair

acts involved in social changes britain (outside hte jarrow march)

• umemployment insurance act 1920

• local government act 1929

• unemployment act 1934

what was the unemployment insurance act 1920

• increased unemployment benefits from 7 to 15 shillings a week for up to 15 weeks per year

• included most workers with income under 250 pounds a yer

• 2/3 of workforce now insured against unemployment

• in 1921

  • lloyd george’s government further extended unemployment insurance act

  • benefits now paid for two sixteen week periods (extra pay = uncovenanted benefit)

  • later became known as the dole - was means tested and now only those poverty stricken received the money

  • GREAT step forward as government began caring for unemployed

local goverment act 1929

• neville chamberlain absolished poor law system

• replaxed it with public assistance committeees

• gave local authorities a grant to pay for services for those not covered by state welfare

unemployment act 1934

allowed for benefit to be paid from the age of 14

• included stringet means test where benefit was refused if others in the family were working