Impact of the Depression 1931-39

Impact of the Depression 1931-39

1. Unemployment figures

   • 1931: National unemployment 23%
   • Worst hit areas higher than 60% unemployment
   • Badly affected areas
     • Motherwell
     • Jarrow
     • Maryport
     • Liverpool + Greater Manchester
     • West Midlands
     • Merthyr Tydfil

2. Government measures

   • National Government - Coalition
   • Unemployment benefit
   • Means test 1931
     • Designed to cut unemployment benefit
     • Families forced to reveal savings + earnings
     • Value of items measured
   • Import Duties Act 1932
     • Price of foreign goods increased
     • Attempt to stimulate industry
   • Special Areas Act 1934
     • Some areas badly affected
     • Commissioners sent to attract new industries to areas

3. Effectiveness of measures

   • Means test
     • Humiliating for families
     • Created poverty
     • Inconsistent
   • Unemployment benefit
     • Provided sustenance
     • Didn't encourage work
   • Import Duties Act
     • Benefits in South
     • Little effect in North (more unemployment)
     • Additional taxes - difficult to export
   • Special Areas Act
     • Success in Team Valley
     • Only 15,000 jobs
     • Reluctance of companies to move to special areas
     • Impossible to replace heavy industry
   • Rearmament + revival in trade lowered unemployment to 1mn

4. Causes and effects of unemployment

   • Causes
     • Traditional policies rather than Keynesian policies
     • Foreign competition in new industries
     • Less demand for British goods
     • Industries inefficient
     • US economy collapsed
   • Effects
     • High poverty - Rowntree's survey 72.6% below poverty line in York
     • Health issues - diet very poor
     • Psychological impacts

5. Jarrow Crusade 1936

   • Causes
     • Jarrow dependent on Palmer's shipyard
     • Orders dried up 1930
     • National Shipbuilders' Security Ltd. - buy small yards + scrap them
     • 1934 Palmer's closed
     • Unemployment 80%
   • Events
     • Petition drawn up demanding right to work
     • 200 men selected to march
     • Well-disciplined, led by MP Ellen Wilkinson
     • Accommodated by townspeople
   • Results
     • Plight of Jarrow publicised
     • Marchers praised for discipline
     • Returned heroes
     • Some work in Team Valley
     • Baldwin refused to present petition
     • No work + unemployment benefit stopped