ECONOMIC PROBLEMS AND INDUSTRIAL RELATIONS, 1923–1929.

Economic problems and industrial relations, 1923–1929.  K: The economic problems facing governments in the 1920s.  U: The challenges these problems posed, and the effectiveness of the policies pursued.  S: Research, explanation and using statistics.

Economic problems and industrial relations, 1923–1929.  All can describe the problems facing the British economy. E-D  Most can explain which problems were the most serious. C  Some can judge how effective the policies pursued by the governments of the 1920s were. B-A

Study the political timeline and identify the major themes and issues of politics of the 1920s arising from it. Use Collier pages to look-up unfamiliar concepts and issues

Use the text to add the following key terms to your glossary:  Honours scandal  Chanak Affair  Carlton Club meeting  Labour’s minority governments  MacDonald and Labour’s reforms  Labour’s links to communist extremism  Campbell Case  Zinoviev letter

TASK: Use pp in the textbook to create a mind- map of the problems facing the British economy during the 1920s. This should include:  Decline of staple industries  Unemployment  Demand side factors  Supply side factors  Positive developments  Industrial unrest  Economic policies (this last section could be separate or linked to the other areas) pg 60

Decline of staple industries  What were they? Iron, steel, coal, shipbuilding & textiles  Before 1914 – 50% of Britain’s output 25% of employment 75% of exports  Their decline links to unemployment (next slide)  Britain’s share of world exports fall from 18% to 11%  Britain struggled to pay for imports  The city of London was no longer the financial capital of the world  US$ replaces the £ as the world’s major currency

Unemployment  Link to decline in staple industries  Remained at 10-15% of the insured workforce through the 1920s  Regional variations  No official unemployment stats before 1911  Figures were based on national insurance data and didn’t include all job seekers therefore is an under-estimate  Annual figures were an average  Highest million  Highest % region Scotland 15% (ship building)  NW 13% (coal)

Demand side factors (changes in demand)  The Great War  Foreign competition  Restrictions on trade  Structural unemployment  Location of industry

Supply side factors (our failure to supply)  Costs of production  Government economic policies  Bad industrial relations  Trade cycle

Positive developments  “Second Industrial Revolution” – new industries: chemicals, cars, electrical goods  Car production up x3 from 1913  National Grid makes electricity widely available  Between 1923 and 1929 overall economic growth was faster than before 1914  Service sector grew – retail, road transport and administration ( 1 million jobs during the 1920s)  Rising living standards

Industrial unrest  Triggered by economic difficulties e.g.  Coal – high injury and death rates due to dangerous working conditions  High costs and foreign competition led to owners trying to reduce wages  Disputes in 1921, 1925 and 1926 against wage cuts  Politically - fear of a socialist revolution, maybe led by the BCP and backed by Bolshevik Russia  Union activity was considered suspicious

Summary 1)Which problems were the greatest threat to the British economy. 2) Which policies were most and least successful? a) ‘Why did Britain face economic problems in the 1920s?’ (12 marks)