Reconstruction

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History A Level Lloyd George Reconstruction

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School Leaving Age Raise to 14-15yo. Geddes Axe cut it. Became a burden on unemployment benefit. Unskilled, potentially might increase support for labour party. Disillusionment on coalition fractures coalition. Socially valued scheme had to be cut. Lloyd George made himself politically accountable.
Agriculture Act minimum price to produce- Geddes Axe cut it. Hardship among farmers- Alienates 40-50 MPs representing rural constituencies. Disillusionment of the coalition. Liberals upset.
Unemployment Act & Pensions extended existing scheme to cover almost all workers earning >£250annual. Geddes Act passed it. Scheme covered 12m workers, important measures even though poor law charity was still needed. Has been argued melodramatically. the reforms avoided revolution.
Addison Housing Act Homes for heroes. Encourages local authorities to build new good quality houses subsidised by central gov. Didn't cut. 'qualified success'. 170k houses by 1922. 1st time gov responsible for housing. Addison accused of being reckless. Bricklayers short supply bc died in war. Housing needs now a state priority. Houses failed to live up to public expectations. 'Homes only heroes would live in'. Retrospect , how they managed to do it was amazing. Liberals upset. Rise of labour party.
Free Trade Liberals & conservatives believed in this 19th century ideology. Gov disagreement meant they believed in laissez faire
Tariffs putting taxes on foreign goods. Beneficial because encourages British production & increases British revenue. Also, create spending power & increases employment. Problem- it would affect empire. Wasn't used because it was divisive -> cabinet was too divided.
Problem with legacy of war & unemployment • 1918- 1919- mini boom inflation • 1919- Cutting workforce, wages and production bc no demand. • 1919- 300k unemployed in Dec 1920-> 700k in Jun 1921. Unemployed get unemployment benefits. Gov paid that for 32 weeks a year instead of 52
Disruption of trade 18 of merchant shipping sunk. Key resources had been used more intensely. E.g. railways. New supplies had been emerged- USA. UK put tariffs, tax and protection on goods coming to the UK which makes then more expensive. Encourages British production. Tariff, taxes and protection can boom economy. Tariff, tax and protection are an addition on the price of goods to increase British gov revenue & make the goods more expensive. However, not introduced because gov was split on this idea bc of free trade.
War debt Britain had sold foreign assets. Inflation. USA creditor. Russian revolution assets seized- Money coming into Britain has been decreased. Money going out is still demanding.
Free trade Many liberals & some conservatives committed to free trade. 19th century (old) ideology. No tax, no tariff, no protection. Britain had an empire  tax would’ve damaged the empire. Tax, tariff and protection could have stimulated trade & created revenue.
Distortion of the economy : war had stimulated industries. Maintenance had been neglected. Trade union activity suppressed- End of war has ended demand. Industries trying to cut cost by reducing wages. Less money but goods are expensive -> big gaps in the economy.
750,000 lost, 1.6 million injured lost generation, workforce gone, pensions to family of dead soldiers- gov have to pay  economic burden on state, never been so many casualties demanding pensions
Keynes ‘borrow your way out of a crisis’- using multiplier effect. New theory- untested- no proof it would work. UK would borrow money to create something which stimulates industries, which then stimulates economy & has a knock on effect. E.g. build roads, produce tar & stone etc. people buy cars, encourages tourists.
Retrenchment Cuts on welfare reforms.
Balancing Budgets Supported by Conservatives & Liberals bc traditional. Money coming out must = money coming in.
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