DWR the coming of the depression

why did traditional industries decline

1. competition from abroad

2. new markets

3. obsolete methods

which industry’s declined in britain

1. coal

2. textiles

3. ship building

4. iron and steel

competition from abroad definition:

british goods were much more expensive than goods sold in the USA and Germany. countries no longer wanted to ‘buy british’ and bought American steel and German coal

new markets definition:

britain allowed fare trade meaning people could buy goods from abroad without being charged high taxes. the USA made it harder for people to buy foreign goods meaning people would buy american goods making the USA a lot of money

obsolete methods definition :

America mass produced their goods meaning they could be made much more cheaply and quickly. britain did not use this method meaning prices were still high

coal

British coal was more expensive because it was more difficult to mine

textiles

man made fibers became much more popular in the 1920s

shipbuilding

japan and the USA could produce ships quicker and cheaper than britain

iron and steel

countries were buying from Germany and America

impact of the decline in industry

unemployment rose, about 800,000 jobs were lost

the cotton industry declined, the number of employed in the industry fell from 621,500 in 1911 to 393,000 in 1938

other countries stopped buying britain’s coal

when America sneezes …

the whole world catches a cold

impact of the 1929 wall street crash

1. impact on jobs

2. impact on the economy

3. impact on politics

wall street crash impact on britain’s jobs

1930 - 2 million unemployed in britain

1932 - 3 million unemployed in britain

wall street crash impact on britain’s economy

people lost confidence in banks and businesses

trade stopped

britain had a trade deficit of £144 million

wall street crash’s impact on britain’s politics

most politicians did not know how to solve the problem