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b)How successful were the National governments in bringing economic recovery to Britain in the years 1931 to 1939? (24 marks) Aims Know: the political and economic situation between 1931-39 Understand: the actions taken by the National Government in its attempts to react to the depression To improve essay planning technique for part b) questions and… To be able to use effective essay planning to sustain a judgement
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Use text book page 80 Identify the key points about the economic situation in Jarrow and the Jarrow Crusade. Add them to your picture. Bullet points only.
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Yes – Nat Govt were successfulNo – NG success was limited implemented most of the May Committee recommendations coming off Gold Standard boosted exports and made sterling a more favoured investment 1931 election the Cons finally commit to protection and free trade is abandoned Unemployment, the average number reduced from 2.7m (1931) to 1.5m !1939) – still high Low interest rates and easier credit (“cheap money”) helped expand the economy Invergordon mutiny continuing lack of foreign investment whilst on Gold Standard forced to abandon Gold Standard Govt policies themselves did little directly to tackle the causes of unemployment especially in the staple industry regions Staple industries were already in long term decline before the 1930s Changes in the dole, including abolition of the means test, did little to stimulate the economy Special Areas Act (1934) gave only limited financial aid to depressed areas No direct govt intervention of the kind seen in USA with the New Deal Union and public protests did little to change govt policy to make it more interventionist
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Success – due to other factors not directly due to government policies Expansion was mainly in the new industries. These were mainly based on electrical power and flourished in parts of the south and midlands. They included household electrical goods, cars, transport especially in London, chemicals, the holiday industry, cinema and large retail stores Low interest rates made obtaining of mortgages relatively easy for those in more secure employment Construction, especially housing, expanded Revival of world trade with the recovery of world markets based on American recovery, particularly after 1935 Re-armament helped reduce unemployment from 1935 onward
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Sum-up your judgement in two sentences. Overall government’s actions during the period were limited in bringing about economic recovery, though some were helpful. It was other factors which in the main helped recovery, although, it can be argued, “depression” remained in some towns and parts of the country in 1939. What would you need to do to improve this conclusion?
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How useful is this source in explaining the economic situation in Britain during the 1930s?
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