Churchill as Chancellor of the Exchequer
History Research
Churchill’s views on socialism and communism:
Churchill as Chancellor of the exchequer:
Churchill was appointed Chancellor of the Exchequer in 1924 under Stanley Baldwin and oversaw Britain's disastrous return to the Gold Standard, which resulted in deflation, unemployment, and the miners' strike that led to the General Strike of 1926. His decision, announced in the 1924 Budget, came after long consultation with various economists including John Maynard Keynes, the Permanent Secretary to the Treasury, Sir Otto Niemeyer and the board of the Bank of England. This decision prompted Keynes to write The Economic Consequences of Mr. Churchill, arguing that the return to the gold standard at the pre-war parity in 1925 (£1=$4.86) would lead to a world depression. However, the decision was generally popular and seen as 'sound economics' although it was opposed by Lord Beaverbrook and the Federation of British Industries.
Churchill later regarded this as the greatest mistake of his life. However in discussions at the time with former Chancellor McKenna, Churchill acknowledged that the return to the gold standard and the resulting 'dear money' policy was economically bad. In those discussions he maintained the policy as fundamentally political—a return to the pre-war conditions in which he believed. In his speech on the Bill he said "I will tell you what it [the return to the Gold Standard] will shackle us to. It will shackle us to reality."
The return to the pre-war exchange rate and to the Gold Standard depressed industries. The most affected was the coal industry, already suffering from declining output as shipping switched to oil. As basic British industries like cotton came under more competition in export markets, the return to the pre-war exchange was estimated to add up to 10% in costs to the industry.
That Commission solved nothing and the miners' dispute led to the General Strike of 1926. Churchill was reported to have suggested that
Churchill’s views on socialism and communism:
Churchill as Chancellor of the exchequer:
Churchill was appointed Chancellor of the Exchequer in 1924 under Stanley Baldwin and oversaw Britain's disastrous return to the Gold Standard, which resulted in deflation, unemployment, and the miners' strike that led to the General Strike of 1926. His decision, announced in the 1924 Budget, came after long consultation with various economists including John Maynard Keynes, the Permanent Secretary to the Treasury, Sir Otto Niemeyer and the board of the Bank of England. This decision prompted Keynes to write The Economic Consequences of Mr. Churchill, arguing that the return to the gold standard at the pre-war parity in 1925 (£1=$4.86) would lead to a world depression. However, the decision was generally popular and seen as 'sound economics' although it was opposed by Lord Beaverbrook and the Federation of British Industries.
Churchill later regarded this as the greatest mistake of his life. However in discussions at the time with former Chancellor McKenna, Churchill acknowledged that the return to the gold standard and the resulting 'dear money' policy was economically bad. In those discussions he maintained the policy as fundamentally political—a return to the pre-war conditions in which he believed. In his speech on the Bill he said "I will tell you what it [the return to the Gold Standard] will shackle us to. It will shackle us to reality."
The return to the pre-war exchange rate and to the Gold Standard depressed industries. The most affected was the coal industry, already suffering from declining output as shipping switched to oil. As basic British industries like cotton came under more competition in export markets, the return to the pre-war exchange was estimated to add up to 10% in costs to the industry.
That Commission solved nothing and the miners' dispute led to the General Strike of 1926. Churchill was reported to have suggested that