1930's Condition

1930's Condition

1. Positives

   • Economic - Secure middle class finance leads to a suburban house boom and consumer goods. Expansion of industries like chemistry leads to better paid jobs for the working class in the south and midlands especially.
   • Social - Families smaller (4.6 children in 1880's compared to 2.19 in late 20's) and contraception more available. Birth control socially accepted. John Bond 1934 "Food, Health and Income" says diet is better than 1914. Army volunteers more fit to fight than in WW2 then WW1. Reduced work hours led to Butlins opened in 1937 in Lincolnshire and survey in Liverpool finds 40% of population goes to cinema at least once a week.

2. Negatives

   • Social - National Government's "means test" (gauge needs of household) intrusive and not generous, although many said benefits higher than places like US.Unemployment led to low nutritional cheap food and Pilgrim Trust interviews found psychological issues like lack of self respect.
   • Economic - Lots of unemployment in North especially where staple industries were. Beveridge finds 84.9% of long-term unemployment was in these areas.Motor vehicle production sees 20% unemployed in 1933 and 4.8% in 1937 yet shipbuilding sees 62.2% and 23.8%.Structural unemployment was a long term economic issues.

3. Government

   • Government ignored Mosely's expansion view and stuck to Victorian "Treasury View" of balancing budget to keep tax low (more productive workers) so less expenditure. Free Trade abandoned by Neville Chamberlain in 1932, 10% export tariff except on things from empire to stop increased income tax. Attempts were made to reorganise iron and steel (coax new industries into areas of high unemployment) but little success. Bank rate lowered from 6% to 2% to reduce debt charges yet many local authorities used these low interest rates to borrow for house building (jobs like electicians). 1934 Unemployment Act based on "means test" saw 2M given in money to unpaid commissions to revive Scotland etc but little success seen. Tariff on foreign steel and British Iron and Steel Federation led to signs of revival by1937.Down to 1.4M unemployed in 1937 though rose again in 1938. Staying on gold standard in 1925 led to high interest so businesses didn't borrow. Abandoning this restored business confidence.

4. Debate

   • Stevenson & Cook -"The Slump" = suggests living standards rose and there was limited public support for any radical political solutions which limited the Government.
   • Aldcroft - Although the economy was boosted it never reached previous levels and was mainly a domestic recovery powered by housing and newer industries.
   • General - 5 main reasons for the 1935 recovery. The first was a government interest rates leading to a construction boom. New service industries developed such as radios where there were 506,000 in 1930 but over 2M in 1937. There were small improvements in staple industries with things like exports. Overall there was a world economy improvement after 1933, the US exports in 1932 were 15.1M pounds but went up to 34.1M in 1937. Note there was only a boom break in 1937 due to break in USA recovery mainly.
   • General - Data is hard to judge as many had secondary earners and Dr M Gousle said mortality in Stockton-on-Tees had too small of a sample. Also lowering bank rate was a Keynesian idea suggesting the Government motive was to reduce their own debt charges and did not appreciate the potential of what they were doing.
   • Pugh - If depression had continued and the King had not abdicated, people may have turned to Mosley or the King who admired him would have appointed him and dismissed Baldwin.

5. Communism & Facism

   • Communism never had any MP's but the Communist Party organised hunger strikes and soup kitchens, saying the depression was capitalism failing. They were still seen however as more dangerous by the Conservatives than Fascists. Mosely led the Facists after his economic plan was rejected and his New Party failed. They had a lot of marches and wore uniforms (membership plummeted from 50,000 to 5000 after 1934).