National Goverment

National Goverment

1. Finical polices

   • Balance the budget
     • International confiendence
       • confidence in banks
   • Means test
   • 10% cut in unemployment
     • Total unemployment fell by 1/2
       • 2.6m 1932 to 1.7m 1938
     • Workers forced to relocate to find work
     • Little reduction in areas most at need (Jarrow)
   • cut wages of public employess
     • Demand in goods and services declined
   • Lowered interest rates to 2% in 1931 ('cheap' money)
     • Investments in modernisation
     • Housing BOOM 2 million new homes
       • Jobs and homes
       • Most on private housing estates for the middle class
         • Only 700,000 council homes built

2. trade policeies

   • Cotton Industry reorganisation act 1936
     • Due to modernisation fewer staff where employed
   • Ottawa Conference 1931
   • Marketing boards
   • British Shipping act 1935
   • Coal production by 1938=1928 Steel production 1938>1928
   • Decline in trade with USA and Germany

3. Industrial polices

   • Sterling area
     • Increased export sales in these areas
   • Import duties act 1932
   • North Atlantic Shipping act 1934
   • Government subsides for live stock farmers
     • Less help given to arable Farmers
   • Special areas act 1934
     • Money was given to most at need areas
     • Only £2million
     • Didn't help many areas that needed it
   • Britain left the Gold standard
     • Made Britishh exports cheaper leading to more sales
     • Set up to stop this

4. OTHER FACTORS

   • Rearment
     • 1936 and 1938 had direct impacts on boosting the stable industries
       • pace increased after Munich Crises of 1938
         • Demand for navel ships boosted the North's economy
   • Home Market
   • New methods of production
     • assemble lines and electricity
   • Growth of new industries
     • Radios, fridges, hoovers, newspapers, magazines
   • People spent their way out of depression
     • Real wages rose by 17%