boom, crisis and recovery

what was the impact of WW1 on Britian’s trade?

20% of merchant ships lost; USA and Japan took over markets → UK couldn't regain trade dominance.

How did technological development help post-war Britain?

Growth in aircraft and radio = ↑ jobs for semi-skilled workers + boosted economy

what was the inflation rate in 1918 and why was it a problem?

25% – wages didn’t keep up → so living standards fell + pressure on coalition gov to sort it

what was the 1922 geddes axe?

Gov cut £87 mil in 1922 to repay war debt (aim was £100 mil)
🔹 Cuts: £18 mil from education, £13 mil from armed forces, rest from housing, pensions, health, unemployment benefits
🔹 → ↑ unemployment (2 mil by 1922 ≈ 17%)
🔹 → ↓ living standards + public backlash

What happened when Britain returned to the gold standard in 1925?

Pound set too high ($4.86) → exports too expensive → businesses struggled.

Why did Britain leave the gold standard in 1931?

£80 mil US loan used up fast → £ devalued (to $3.40) → exports became cheaper, but trust in £ fell.

What was protectionism and why did it fail?

Tariffs to protect old industries. Public feared food price rises → only limited tariffs used → no reforms

What was the effect of limited tariffs in 1925?

Short-term help to old industries, but no modernisation → economy lagged behind.

What was “cheap money” and how did it affect the economy?

Interest rates cut (6%→2%) → ↑ gov & business spending → housebuilding boom + ↑ jobs.

What were the long-term problems facing the British economy post-WW1?

Lost trade, outdated industries, inflation, public spending cuts, weak exports, & overreliance on old sectors