The Great Depression in Great Britain during 1920-1930s
War conflicts speed up social processes. Britain, during and after the First World War, was not any exception. Britain became more united after the Great War, but also more isolated. Its magnificent, imperial position shook under the postwar world transformation influence. Her colonial empire still remained to one of the largest in the world, British export however did not belou to the leaders of world trade.
From economic point of view Britain lost its industrial superiority before the Great War. Both, Germany and mainly the USA, produced much more coal, iron and steel during the war.
Industry in Britain was controlled by state, so-called collectivism governmental apparatus. Key industries were again returned into the private ownership – railway, transportation and even extractive industry. To restore prewar safe structure was not easy and soon was clear, that life was not in standard conditions. Imperial big power weakening brought along new and alarming economic problems. Those resulted from economic trade outlet loss and from sales of foreign assets, through which her involvement in the Great War had been financed. All o it led to enormous rise of national debt and to inflation.
In 1919 Britain was found herselves at the social revolution and during this period first postwar economic depression appears. Government was not able to prevent masive unemployment rises ( more than 1 million ), that concerned traditional industries and led to bigger class partition than before. During 1919 – 1921 nationwide strikes of miners, railwaymen and other workers appeared. Short and temporary capitalist economic stabilisation arose after this critical period. New schematics influencing Britain for next twenty years arose.
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The Cold War and the New World Order (1) It would not be an exaggeration to say that Gold War served as metaphysical foundation, upon which international relations were based, from the time of Churchills famous Fulton speech in 1946, to 1991, when Soviet Union has painlessly ceased to exist. One month prior to committing suicide in his bunker, Hitler had prophesied: With the defeat of the Reich ...
Industrial decline, unemployment and social dissatifaction (miners did not want to agree on lowering wages and extend the working hours ) provoked in 1926 to the most dramatic clash of labour movement with capitalist state – the General Strike.
It was the worse class conflict in British history. The General Strike paralysed public life and Britain remained without any production. 4 million workers participated in the strike and potential economic trade unions strength proved. Whole strike proceeded without any violence and on the other hand both police and military did not make any intervention against strikers. Trade unions called the strike off after 9 days. The General Strike ended of absolutely trade unions defeat, especially coaly minors who continued striking for several months. After the strike employers of all industrial branches took revenge and thousands strikers remainded without work for several months or were allowed to work only part time. Strike movement leaders were written on a black list and could not get a proper job for some years. The strike also revealed and strengthened disorganisation, that endangered nation unity in following years, but on the other hand showed solidarity of working classes throughout Britain both in
traditional industrie, such as mining, steelmaking, shipbuilding and also in newer ones – road and railway service and distribution industry.
The class partition was now even higher. Social problems accumulated and the unemployment stayed at a steady one million. Whole areas declined. Especially old basic industries with traditional coal mining, iron and steel production – North England, South Wales, Clydeside in Central Scotland, so-called Distressed areas. Those areas had poor environment, distressed condition of education system and public service, wide-spread children’s ailment and bituminosis among coal miners. It was desperation and disillusion period for these areas.
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As well the country contended with depression. The numer of rural inhabitants declined.
The prices of agricultural products fell and thereby rural inhabitants income was smaller as well.
The South of England and London was quite different matter. 1920s were prosperous time. Prices fell down, houses were easily available and there was more possibilities of entertainment. New industrial works were opened – automotive and aero factories, chemical and electrical industries. The unemployment was not that high in these areas.
Ensure cooperation of working classes living in such different conditions was very difficult.
1930s were influenced by the Stock Market Crash in New York in 1929 followed by trade decline and even worse depression. Worldwide overproduction and demand decline ( along with focus on traditional, but declining industry – coal, steel, shipbuilding with overemployment, ineffective work and low investment ) caused stagnation and social desintegration. All of this was followed by drop in production by 25% which was very severe for whole working class.
Also so-called work rationalisation according to american model meant higher production with lower number of workers causing bigger exploitation and growing unemployment.
The whole industrial and production base got shrank.
Unemployment went up and culminated in 1932 when it reached 3 million workers.
Conservative government systematically lowered living standard of british workers.
Public sector wages and unemployment pay were cut by 10%.
National Unemployed Workers‘ Movement organised so-called Hunger Marches to London. They became mass demonstrations. Nation and its economy needed new political initiative.
A “national government” was formed. This government did very little to eliminate poverty. Old industrial areas stayed, in consequence of Department of the Exchequer and English National Bank restrictions, without state support.
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With a decade of falling unemployment behind us, memories fade as to what actually happens during recessions. Those who have been working for a decade or less have never experienced a recession. It hurts. Forty years later, I can still remember being fired at age 22 from a summer job in a copper smelter when the demand for copper turned down. It was not a serious blow economically, but I can ...
Britain in 1930s showed suprisingly high level of stability in Europe.
Její společenská a kulturní hierarchie zažila jen málo změn. Prestiž parlamentu, soudů a vzdělávacího systému na čele s Oxfordem a Cambridgí, zůstaly i nadále velmi vysoké. Monarchie si zachovala úctu tím, že se pružně přizpůsobovala změnám názorů lidových mas.
Významný vzestup zaměstnanosti nastal až na základě obnoveného zbrojení v období, jež následovalo po tzv. “Bílé obranné zprávě” z r.1935, která položila důraz na strojní a leteckou výrobu. Toto obnovené zbrojení, in the face of the rise of Nazi Germani, provided economic stimulus that finally ended the depression. By 1937 unemployment had fallen to 1.5 million, from where it fell even further. The mobilization of manpower following the outbreak of World War II in September 1939 finally ended unemployment.