BH - Economic history 1870-1914

How do historians differ in their account of the economic history of 1870-1914 from British observers of the time?

Historians at the time argued that the British economy's difficulties were caused by the Great Depression

Historians today argue that it was caused by changes in the world economy and domestic problems

What are two reasons for the economic problems experienced by the British economy from 1870 to 1914? (other than Great Depression)

- changes in the world economy

- problems in the domestic economy.

What word describes the start of industrial decline in Britain?

Incipient and relative decline

(relative to Britains past domination and to foreign competition)

What percentage of the world's ships were British built in 1892 and 1911?

80% in 1892 and 60% in 1911

What was GB and Germany's % share of global manufacturing output in 1880 and 1913

GB: 22.9% & 13.6%

Germany: 8.5% & 14.8%.

What industry had the largest percentage of British exports in 1881-1890 and in 1910-1913?

Textiles:

41.4% 1881-1890

32.4% 1910-1913

What percentage of the British economy was held by manufacturing by 1914?

What data can be used to illustrate the expansion of manufacturing by 1914?

25% of British output

30% more workers employed in 1900 than 1870

Why was it unsurprising that British industrial exports would decline?

- 1st industrial nation so

- Other nations industrialised

- reducing demand for British exports and competing successfully with British industry

What does 'workshop of the world' mean in terms of production and exports?

- workshop = stable industries

- world = market for British exports of staples

Identify four problems in the British economy from 1870-1914.

- family-firm issues

- productivity problems

- technical and scientific failures

- growing divergence in interests between industry and the City

How did the production and organization of industrial production in GB differ from Germany and the USA?

Germany and the USA had

- multi-unit firms

- greater productivity

- bigger markets

- and in the USA, a huge supply of unskilled labor with automation and assembly-line production

What are four problems inhibiting British productivity?

- poor management

- limited mechanisation

- insufficient capital investment

- higher levels of unionisation than competitors

By what percentage was the USA more capital intensive compared to GB?

90%

What did the cotton and coal industries fail to invest in?

Automated ring spinning and mechanical extraction of coal

What do registered patents indicate about the competitiveness of Germany relative to GB?

Patents indicate scientific and technical innovation

- USA and Germany dominated new inventions

- Germany overtook GB in patents.

What statistical data illustrates British educational weakness in chemistry?

- 1870, only 19 new graduates in STEM subjects

- Oxford and Cambridge did not offer degrees in STEM

- 1872, University of Munich produced more chemistry graduates than all of England

What is GNP

- GNP = Gross National Product

- the total market value of all final goods and services produced by a country's residents and businesses

(regardless of where the production occurs)

- essentially measuring national income generated by citizens and companies abroad and at home, minus income earned by foreigners within the country

How much GNP did the USA and Germany invest at home compared to GB?

- USA and Germany invested 12% of GNP at home compared to 5-7% of British GNP

Which part of the economy is associated with visible earnings, which part is associated with invisible earning?

(i) Staples and manufacturing

(ii) investment's, banking , insurance, shares (financial services)

What did the growth in invisible earnings hide?

A growing deficit in visible earnings

What type of farmer was destroyed by free trade and foreign competition?

Arable farmer

Why did arable farming effectively end, mention:

- prices

- high farming

- foreign competition

- price of grain fell by 1/3 between 1874-1914

- high farming failed to increase yield of acreage dedicated to arable

- between 1900-14 only 25% of wheat consumed in gb came from domestic farmers

- note 95% of GB consumed wheat

What percentage of wheat came from domestic farmers between 1900 and 1914?

25%.

By what percentage did British agricultural output fall between 1851 and 1895?

20%.

What type of farmer became successful between 1870-1914 and why?

Dairy farmers, due to no foreign competition and increased urban domestic demand

What percentage of British farming was held by milk and cattle in 1911?

40%.

What fraction of an average farmer's rent was covered by their profits between 1875-1914?

1/4

What was British steel production equivalent to in 1879?

Total of European production

When did Germany and the USA surpass British steel production?

Germany in 1893

USA in 1886

What were the percentage shares of global chemical production for the USA & Germany vs GB?

60% for USA & Germany

11% for GB

Name three new British companies in new industries and their limitation regarding the balance of payments

ICI

Raleigh

Liptons

Lever Bros but mainly for domestic markets

How are GB's economic problems connected to trade unions, tariffs, and social reforms?

- employers resisted wage rises and focused on boosting productivity to compete this lead to conflict with unions

- inflation after the Boer War declined real wages this prompted calls for retaliatory tariffs

- strength of German competition seen as due to better education and social policy contributed to increased social reforms especially between 1906-14