The 1920s Economy

The 1920s Economy

1. Failures:

   • Return to the Gold Standard 1925 -- increased price exports by 10%
   • No consistent Gov. Policies especially with re-structuring in the staple industries
   • Wall Street Crash in 1929 -- MASS unemployment
   • General Strike 1926 -- impact on production
   • Surplus goods in some staple industries e.g. coal (no need for foreign countries to buy it from UK, e.g. Ruhr coal given to the French due to the Versailles Treaty) thence the industries when into decline
     • Foreign Competition. ToV (see above). Dawes Plan -- coal as part of reparations. Keynes Treaty stopped countries moving forward with trade.
   • The Great War disrupts trade
   • 2 slumps in economy -- 1921-2 and 1929
   • Britain's share of world trade fell

2. Successes:

   • Service industries, e.g. hotels... created 1 million jobs
   • Motor Cars: big growth in car production in the 20s -- threefold that of 1913. Also better roads.
   • National Grid. Electricity now national, bringing people into the 20th century. Growth of electrical good (so more money).
   • Young and Dawes Plan
   • Mass entertainment administration
   • Rising living standards
   • Housing: both council properties and private. The 1924 Wheatley Housing Act, and the Local Government Act by Neville Chamberlain
   • Industry --no need to be based around coalfields, so moved to London, S.E, Midlands