Section 4: The Hungry Thirties 1929-1939

What were the main political developments from 1929-39?

• The 1929 Labour Government

• Responses and policies to the economic crash

• Reasons for the formation, and policies of the National Government 1931

• The leadership of MacDonald, Baldwin and Chamberlain

How many seats, and what percentage of the vote did the Conservative party get in the 1929 election?

260 seats, 38.1%

How many seats, and what percentage of the vote did the Liberal party get in the 1929 election?

59 seats, 23.5%

How many seats, and what percentage of the vote did the Labour party get in the 1929 election?

288 seats, 37.1%

What were the social policies success of the 2nd Labour government from 1929-31?

• Housing Act 1930: Helped both m/c and w/c, increasing house building subsidies + new slum clearance schemes

• Coal Mines Act 1930: Reduced miners working day from 8 to 7 ½ hours, trying to reduce bitterness after General Strike (20 years to gain half an hour was an insult, no nationalistion shows how limited Labour was)

What were the economic policies success of the 2nd Labour government from 1929-31?

• Agricultural Marketing Act 1931: Created marketing boards to help producers, fixing prices and arranging supplies more effectively (helping farmers for first time in the course really)

• London Transport Bill 1931: Introduced by Morrison, created public cooperation, provided cheap/efficient public transport. Importantly first nationalization by Labour (long term) and improved national efficiency

What did the 1930 Housing Act do?

Helped both m/c and w/c, increasing house building subsidies + new slum clearance schemes

What did the 1930 Coal Mines Act do?

Reduced miners working day from 8 to 7 ½ hours, trying to reduce bitterness after General Strike (20 years to gain half an hour was an insult, no nationalistion shows how limited Labour was)

What did the 1931 Agricultural Marketing Act do?

Created marketing boards to help producers, fixing prices and arranging supplies more effectively (helping farmers for first time in the course really, aince Geddes Axe cut 1920 Agricultural Act)

What did the 1931 London Transport Bill do?

Introduced by Morrison, created public cooperation, provided cheap/efficient public transport. Importantly first nationalization by Labour (long term) and improved national efficiency

What reforms did Labour try, and fail to introduce due to their status as a minority government? (should be credited with trying)

• Repealing the 1927 Trade Union Act

• Increasing school leaving age to 15

• Maximum working week of 48 hours

  In fairness, quite holistic

Outline a timeline of Labours response to the economic crisis

1930

• Debate: Snowden (the Chancellor) who wanted to balance the budget and maintain the Gold Standard. Mosley (Minister for economic affairs) called for Keynsian economic policies of public works schemes

• MacDonald chose Snowdens stance, Mosley resigned, but the cabinet couldn`t agree on the size of cuts

  1931

• Set up May Committee (chaired by Sir George May) to make recommendations on spending cuts

• Report published on 31st of July 1931, bombshell. Predicted government deficit of £120m, and recommended £96.5m in cuts inculding public sector pay cuts, 20% reduction in benefit, and increased tax. The two Labour MPs on the committee disagreed with the report but were ignored

• Mac cut £56m and employment benefit. TUC rejected this and tried to pressure cabinet not to support it. On 23rd of August cabinet voted in favour of cuts to benefits by 11 to 9 votes.

What was the debate that took place inside the Labour party in 1930 over response to the economic crisis?

Snowden (the Chancellor) who wanted to balance the budget and maintain the Gold Standard. Mosley (Chancellor of the Duchy of Lancaster with some responsibility for unemployment policy) called for Keynsian economic policies of public works schemes (“Mosley Memorandum" in May 1930)

When was the May committee set up, and what was its role?

Set up Feb 1931, to make recommendations on spending cuts

Why chaired the May Committee?

Sir George May

When was the May Report released?

31st July 1931

What were the findings and recommendations of the May Report?

Predicted government deficit of £120m, and recommended £96.5m in cuts including public sector pay cuts, 20% reduction in benefit, and increased tax. The two Labour MPs on the committee disagreed with the report but were ignored

What was the budget deficit predicted to be by 1932 according to the May Report?

£120m including public sector wages, and a reduction in benefit of 20%

How much did the May report recommend to cut?

£96.5m

How much did Ramsey MacDonald decided to cut after the recommendations of the May Committee?

£56 million

How did the Labour cabinet vote when it came to cutting unemployment benefit on the 23th of August 1931?

11 in favour, 9 against

What were the reasons the National Government was set up?

• MacDonalds weakness: When he visited the king to form a “temporary” coalition, he was taken by surprise when only 3 Labour MPs followed him (Snowden, Thomas and Sankey). He had failed to listen to his party, the Unions, JMK and his own Economic Advisory Council. Then refused to resign when his party split

• The King: Allegedly told MacDonald he “was the only person who could carry the country through”, king had huge influence at the time

• Other political parties: Baldwin, Samuel (standing in for DLG) both didn’t want to form a new government in uncertain times, but told the King they`d support MacDonald as PM

How did MacDonalds weakness contribute to the formation of a National Government?

When he visited the king to form a “temporary” coalition, he was taken by surprise when only 3 Labour MPs followed him (Snowden, Thomas and Sankey). He had failed to listen to his party, the Unions, JMK and his own Economic Advisory Council. Then refused to resign when his party split

How did the influence of the King lead to the formation of a National Government?

Allegedly told MacDonald he “was the only person who could carry the country through”, king had huge influence at the time

How did the manovering and stance of other parties lead to the formation of a National Government?

Baldwin, Samuel (standing in for DLG) both didn’t want to form a new government in uncertain times, but told the King they`d support MacDonald as PM

What was the 1931 election known as, and why?

The Doctors Mandate, because it was pitched to voters as a mandate for a “medicine” that might not be pleasant (eg cutting public sector wages) but would solve the economic crisis

What were the results of the 1931 “Doctors mandate” election?

Conservatives: 55.2%, 473 seats

National Labour: 1.6%, 13 seats

Labour: 30.6%, 52 seats

What percentage of the vote, and how many seats did the Conservatives get in the 1931 “Doctors Mandate” election?

55.2%, 473 seats

What percentage of the vote, and how many seats did National Labour get in the 1931 “Doctors Mandate” election?

1.6%, 13 seats

What percentage of the vote, and how many seats did Labour (not National Labour) get in the 1931 “Doctors Mandate” election?

30.6%, 52 seats

What were the political strengths of MacDonalds governments from 1929-35?

Did what Jo Chamberlain (1902-06) and Baldwin (1924) couldn`t, introduced a tariff wall around the Empire in 1932 at the Ottawa Conference in 1932

What were the political weaknesses of MacDonalds governments from 1929-35?

• 1929-30: Failed to gain Liberal support for education bill that would increase leaving age to 15, something that was once a Liberal policy

• 1930-35: Ignored his own party, the TUs, JMK and his own Economic Advisory Council. Then refused to resign when his party split (only 3 MPs supported him, Snowden, Thomas and Sankey)

What were the economic strengths of MacDonalds governments from 1929-35?

Agriculture:

• Agricultural Marketing Act 1931: Created marketing boards to help producers, fixing prices and arranging supplies more effectively (helping farmers for first time in the course really)

  Industry:

• London Transport Bill 1931: Introduced by Morrison, created public cooperation, provided cheap/efficient public transport. Importantly first nationalization by Labour (long term), improved national efficiency, and created jobs

  Trade:

• 1931 Came of gold standard making British exports more competitive

• 1932 Ottawa Conference set up a system of Imperial Preference

What were the economic weaknesses of MacDonalds governments from 1929-35?

10% cut in unemployment benefit with new 'means test' introduced, £56m in welfare cuts

What were the social strengths of MacDonalds governments from 1929-35?

• Housing Act 1930: Helped both m/c and w/c, increasing house building subsidies + new slum clearance schemes

• Coal Mines Act 1930: Reduced miners working day from 8 to 7 ½ hours, trying to reduce bitterness after General Strike (20 years to gain half an hour was an insult, no nationalisation shows how limited Labour was)

What were the social weaknesses of MacDonalds governments from 1929-35?

Failed to pass imporant form such as education bill

What factors led to the economic depression of the 1930s? (4)

• Gold standard: Made British exports more expensive, and thus less competitive, leading exports to half from 1929-32

• Debt: USA called in its loans for WW1 after WSC, on the other side countries like Italy couldn`t pay back money Britain had lent to them in the war

• Unemployment: Already 1m before the crash, almost 3m by 1931

• MacDonalds leadership– MacDonald was not quick to respond to the crisis, was not prepared to take radical new measures

Why did the Gold Standard exacerbate the economic crash?

Made British exports more expensive, and thus less competitive, leading exports to half from 1929-32

Why did debt exacerbate the economic crash?

USA called in its loans for WW1 after WSC, on the other side countries like Italy couldn`t pay back money Britain had lent to them in the war

Why did unemployment exacerbate the economic crash?

Already 1m before the crash, almost 3m by 1931

Why did MacDonalds leadership exacerbate the economic crash?

MacDonald was not quick to respond to the crisis, was not prepared to take radical new measures (google what Keynes said about the May Report)

How were different parts of the economy effected by the Great Depression?

• Staple Industry: Hit hugely, ship yard closures led to unemployment of over 70% in Jarrow, coal mine closures led to unemployment of 62% in Merthyr Tydfil. Coal production didn`t recover to 1928 levels till 1938.

• New Industry: New industries grew, in part due to the reforms of the 1920s (eg Electricity Supply Act 1926), car production doubled. However, this was usually in the South East and Midlands were employment wasn`t such an issue.

• Trade: Global trade decreased by 1/3, but British exports disproportionately hit as it was the largest exporter in the world, leading them to ½

• Agriculture: Hit hardest. Wheat prices halved, leading farmers to turn from arable crops to eggs/chickens, hoping for better prices. This made Britain became dependent on food imports, causing cost of living to rise and standard of living to decrease = hungry 30s.

How did the National government help staple industry?

London Transport Bill 1931: Introduced by Morrison, created public cooperation, provided cheap/efficient public transport. Importantly first nationalization by Labour (long term), improved national efficiency, and created jobs

Rise in new industries reduced the impact of staple decline (eg car production doubled over the decade), seen in 1931 census which saw an influx to London and SE, unemployment reduced from 3m in 1931 to 1.6m in 1936

How did unemployment reduced from 1931 to 1936?

Almost halved from 3m to 1.6m

How did the National government fail to help staple industry?

• Didnt only close unprofitable industries, but also less profitable industries (eg shipyard in Jarrow was still making a profit) to artificially lower supply, thus increasing profits

• Failed to stand up to industry. Eg a proposal to build a steel mill in Jarrow was rejected by the industry to keep supply lower

What was unemployment in Jarrow in 1936?

Over 70%

What did unemployment reach in Merthyr Tydfil

62%

How did the National government help new industry?

Electricity Supply Act 1926 led to completion of National grid in 1933, ahead of schedule and on budget. This allowed electricity production to quadruple, leading to the number of electricity users in the UK to grow faster than any other country in the world. Provided energy for new industries, and increased consumer demand (couldnt have appliances without electricity) eg car production doubled

What act led to the establishment of the National Grid, and when was it completed by?

Electricity Supply Act 1926 led to completion of National grid in 1933, ahead of schedule and on budget

How much did electricity production increase across the 1930s?

It quadrupled

How did the National government not help new industry?

Didnt direct its growth, so it mainly benefit areas were unemployment wasnt high - the Midlands and SE.

How did the National government help trade?

Left Gold standard in 1932, devaluing the £ by 30%, making exports more competitive. 1932 Import Duties Bill created a 10% tariff wall around the Empire, with Dominions joining the “Sterling area” after the 1932 Ottawa conference

How much was the £ devalued when leaving the Gold Standard in 1932?

30%

What bill created a 10% tariff wall around the Empire?

1932 Import Duties Bill

What event led dominions into the Sterling area?

The 1932 Ottawa Conference

What was the name of the internal trade within the Empire and Dominions called?

The Sterling area

How did the National government not help trade?

To little to late. Most countries had already left the Gold Standard and introduced protectionist tariffs.

How did the National government help agriculture?

Agricultural Marketing Act 1931: Created marketing boards to help producers, fixing prices and arranging supplies more effectively (helping farmers for first time in the course really). Took more joined up approach to stop all farmers moving away from arable crops.

How did the National government not help agriculture?

Rural wages 1/3 of urban wage and working conditions were poor.  It was not until 1936 that agricultural workers were included in the National Insurance Scheme, and their NI wouldnt become equal with workers till 1946

What were rural wages compared to urban wages?

1/3

When did agricultural workers first get included in NI, and when did they receive the same NI as the rest of the population?

Included in NI in 1936, fully included by 1946

What year was the Jarrow March?

1936

How many people took part in the Jarrow March?

200 unemployed men

How far was the march from Jarrow to London?

300 miles

What were the cultural shifts of the 1930s?

Literature:

1. Became more widespread and proletarianized. Depression encouraged reading (as it was an affordable activity) + mass printers such as Penguin developed (by creating 6p books). Number of books published rose from 7.2m in 1928 to 27m in 1939.

2. Literature began to influence politics (eg Orwells Homage to Catalonia on the Spanish civil war, 1938), with 50,000 members in the Left Book club (formed 1936) and 25,000 members in the Right Book club (formed 1937)

Consumerism:

1. Facilitated by electricity: Rapid expansion of national grid (after Electricity Supply Act 1926 led to completion of National grid in 1933, electricity production quadrupled over the decade, 9m users by 1938) allowed consumer items such as vacuums to be sold. 1

2. Growth of tourism: 1938 Holidays with Pay Act (1 week annual leave) meant 11m received paid holiday, leading to development of tourist industry (eg Butlins founded 1936

Cinema:

1. Increased and consolidated reach: 5m cinemas by 1939. 80% of unemployed attended cinemas at least once a week.

2. British influence: by 1936 20% of all films released had to be British made

How expensive were the cheapest penguin books?

Sixpence

How did the number of books published increase from 1928-39

Increased from 7.2m (1928) to 27m (1939)

What was the name of the left wing literature organisation?

Left Book Club

What was the name of the right wing literature organisation?

Right Book Club

How many members did the Left Wing Book Club peak at?

50,000

How many members did the Right Wing Book Club peak at?

25,000

Why was the Right Book Club less influential than the Left Book Club?

Because fascism become increasingly ostracised by mainstream society over the decade

In what way did culture change regarding literature over the 1930s?

1. Became more widespread and proletarianized. Depression encouraged reading (as it was an affordable activity) + mass printers such as Penguin developed (by creating 6p books). Number of books published rose from 7.2m in 1928 to 27m in 1939.

2. Literature began to influence politics (eg Orwells Homage to Catalonia on the Spanish civil war, 1938), with 50,000 members in the Left Book club (formed 1936) and 25,000 members in the Right Book club (formed 1937)

What act helped facilitated the growth of the tourist industry?

1938 Holiday with Pay Act (1 week annual leave) meant 11m received paid holiday, leading to development of tourist industry (eg Butlins founded 1936)

How many workers were entitled to annual leave due to the 1938 Holiday with Pay Act?

11m

In what way did culture change regarding consumerism over the 1930s?

1. Facilitated by electricity: Rapid expansion of national grid (after Electricity Supply Act 1926 led to completion of National grid in 1933, electricity production quadrupled over the decade, 9m users by 1938) allowed consumer items such as vacuums to be sold. 1

2. Growth of tourism: 1938 Holidays with Pay Act (1 week annual leave) meant 11m received paid holiday, leading to development of tourist industry (eg Butlins founded 1936)

How many cinemas were their in the UK by 1939?

5m

What percentage of unemployed people attended the cinema at least once per week?

80%

What percentage of films had to be British produced by 1936?

20%

In what way did culture change regarding cinema over the 1930s?

1. Increased and consolidated reach: 5m cinemas by 1939. 80% of unemployed attended cinemas at least once a week.

2. British influence: by 1936 20% of all films released had to be British made

What were the 3 biggest threat to government in the 1930s?

• 1936 Abdication crisis: Edward VIII proposed to Wallace Simpson, a two time divorcee. Threated split in the Conservative (Kings party formed by Churchill, which could leave a void for the Fascists), anger Dominion Prime Ministers, isolating Britain further push Ed further from establishment (already had fascistic sympathies)

• CPGB: Gained support first from failures of Labour and the depression (membership increased from 2.5k-6k from 1929-31, then due to anti-fascist activity (56k by 1945). However, set up its own isolated TUC (due to theory of social fascism) and so didn`t have much influence amongst the TU and w/c movement.

• BUF: Set up after Mosleys visit to Italy in 1932, had 50k members within 2 years (dangerous as it pulled both r/c, Lord Rothermere “Hurrah for the Blackshirts”, and w/c seen by membership stats). Also used more violence (Cable Street 1936 highly provocative)

In what way did the 1936 abdication crisis act as a political threat to government?

Threated split in the Conservative (Kings party formed by Churchill), anger Dominion Prime Ministers, push Ed further from establishment (already had fascistic sympathies)

In what way did the 1936 Abdication Crisis not act as a political threat to government?

The majority of Tories, all of Labour, and a majority of the public backed his abdication, and Edward complied so no constitutional crisis. Could have been bad but wasn`t

What was the name of the faction in the Conservatives that supported Edward VIII in the Abdication crisis, and who was it led by?

The Kings Party led by Churchill

In what way did the CPGB act as a political threat to government?

Gained support first from failures of Labour and the depression (membership increased from 2.5k-6k from 1929-31, then due to anti-fascist activity (56k by 1945)

How much did CPGB membership increase from 1929-31 due to the failures of Labour and the Great Depression?

2.5k-6k

How much did CPGB membership increase from 1931-45 due to their anti-fascist action?

6k-56k

In what way did the CPGB not act as a political threat to government?

Set up its own isolated TUC (due to theory of social fascism) and so didn`t have much influence amongst the TU and w/c movement.

What kept the CPGB isolated from the TUs and w/c

Theory of Social Fascism

In what way did the BUF act as a political threat to government?

50k members within 2 years (dangerous as it pulled both r/c, Lord Rothermere “Hurrah for the Blackshirts”, and w/c seen by membership stats). Also used more violence (Cable Street 1936 highly provocative)

How fast did BUF membership from its founding in 1932 to 1934

Rose to 50k

What was the name of the Daily Mail owner who supported the BUF

Lord Rothermere

In what way did the BUF not act as a political threat to government?

Where opposed by the government (1936 Public Order Act mean Police could ban political meetings and forbade political uniforms), and people (Battle of Cable street 1936)

Olympia rally in London, in 1934, BUF stewards violently ejected anti-fascist disrupters, and this led the Daily Mail to withdraw its support for the movement

What act mean Police could ban political meetings and forbade political uniforms, and when was it enacted?

1936 Public Order