6 - Impact of the wall street crash and it's effect on industry in Britain

History

How did the Wall Street Crash of 1929 impact unemployment in Britain?

The crash led to the Great Depression, which worsened unemployment in Britain. By December 1930, unemployment reached 2.5 million.

What was the economic situation in Britain by 1931?

By 1931, the value of British exports had fallen by half, and the cost of paying unemployment benefits had risen dramatically, from £12 million in 1928 to £125 million in 1931.

How did the Wall Street Crash affect specific industries in Britain?

Traditional industries like coal, cloth, steel and shipbuilding were hit hardest, leading to high unemployment, particularly in northern England, Wales, and Scotland.

Which areas in Britain were most affected by unemployment during the Great Depression?

Northern England, Wales, and Scotland had the highest unemployment rates. For example, Rhondda and Merthyr in south Wales had 40% unemployment, and parts of northern England had over 60% unemployment.

How did the Labour Party respond to the Depression in 1931?

The Labour Party was in power but did little to solve the unemployment crisis. In 1931, a coalition government was formed, led by Ramsay MacDonald. This became known as the National Government.

What measures did the National Government take to address the Depression?

The National Government implemented tax increases and cuts in salaries across several sectors, including teachers (15%), armed forces, MPs, and judges (10%), and police (5%). Unemployment benefits were also reduced.

How much were the loans secured by the National government during the Depression and where were they from?

The Bank of England secured loans from Paris and New York to the value of £80 million.

What was the significance of Britain coming off the Gold Standard in 1931?

In September 1931, Britain was forced to come off the Gold Standard, which led to the fall in the value of the pound, making British goods cheaper for foreign markets, boosting exports. It also helped reduce imports and balanced government spending.