Preview

How Successful Were the National Governments in Bringing Economic Recovery in Britain in the Years 1931-1939?

Good Essays
Open Document
Open Document
710 Words
Grammar
Grammar
Plagiarism
Plagiarism
Writing
Writing
Score
Score
How Successful Were the National Governments in Bringing Economic Recovery in Britain in the Years 1931-1939?
How successful were the national governments in bringing economic recovery in Britain in the years 1931-1939?

The National Governments experienced moderate success in bringing about economic recovery in the years 1931-1939. It would be inaccurate to say that the policies of the governments were the only contributing factor as they alone were not sufficient enough to tackle the harsh economic climate, but for the most part the National Governments were responsible for a moderately successful economic recovery.

The National Governments put in place several significant policies that were successful in bringing about economic recovery in Britain. In 1932 the decision was made to lower the bank rate to 2% which was beneficial to the recovery for various reasons including that the lowered rates resulted in what people referred to as ‘cheap money’, an idea which enveloped the public and resulted in many taking out loans and mortgages. This new wave of prosperity meant people were spending more and increasing demand, which in turn stimulated the economy by creating a demand for staff, which led to lower unemployment. The National Government was responsible for this cycle of prosperity and the consequential growth in consumerism, which aided the recovery significantly.

Furthermore, though not one of their original intentions, the National Government were responsible for shelving the Gold Standard in September of 1931 which proved to aid economic recovery. It allowed the value of the pound to depreciate from $4.86 to $3.40, which as a result made British exports cheaper so more goods were sold internationally. The timing however proved to be a limiting factor as other currencies were leaving the gold standard and also depreciated in value resulting in a wide range of foreign competition. This was a key reason why so many countries introduced protective tariffs, making exporting goods more difficult. Britain did however sell more exports to countries within the

You May Also Find These Documents Helpful

  • Good Essays

    Government involvement in the economy increased most significantly during the New Deal of the 1930s. The 1929 stock market crash had initiated the most serious economic dislocation in the nation 's history, the Great Depression (1929-1940). President Franklin D. Roosevelt (1933-1945) launched the New Deal to alleviate the emergency.…

    • 500 Words
    • 2 Pages
    Good Essays
  • Satisfactory Essays

    Gold Standard Dbq

    • 218 Words
    • 1 Page

    The Gold Standard, formally instituted in the United States in 1834, was a way to secure the prices of domestic currency in terms of a tangible, valuable commodity–gold. With a single ounce worth $20.67 ($384.35 in today’s money), people freely converted their earnings into gold and vise versa. Originally on a bimetallic system, that is a silver and gold standard, the United States followed the British in their transition to a strictly gold standard. During this time, a great number of countries adopted this system to varying degrees, leading to a groundbreaking period of free trade and economic growth. This period was limited, however, and was dismantled during World War II due to aggressive inflation.…

    • 218 Words
    • 1 Page
    Satisfactory Essays
  • Good Essays

    Right after he became president, he stopped relying on the gold standard. The gold standard was…

    • 283 Words
    • 2 Pages
    Good Essays
  • Satisfactory Essays

    Apwh Tri 3 Review Answers

    • 1721 Words
    • 7 Pages

    The government of which of the following nations was least successful in engineering a recovery from the Great Depression?…

    • 1721 Words
    • 7 Pages
    Satisfactory Essays
  • Good Essays

    The prosperity of the roaring 1920s left Americans unprepared for the economic depression they would be facing in the 1930s. On October 29th, 1929 (Black Tuesday), the stock market crashed, and President Hoover was expected to lift the nation back onto its feet. However, like many previous presidents, Hoover maintained the government’s laissez-faire attitude in the economy. Soon after, the election of FDR and his many “alphabet soup” programs in his first 100 days addressed the nation’s call for help. Although Roosevelt’s administration was not very effective in curtailing the Great Depression, it left a lasting legacy in the role of the federal government by creating lasting programs, satisfying many of the needs of the citizens, and increasing the federal government’s power.…

    • 487 Words
    • 2 Pages
    Good Essays
  • Satisfactory Essays

    In Great Britain, there were economic difficulties. For example, the decline of several industries led to high unemployment. In 1929, the Labour Party, which was the largest party in Great Britain, couldn't solve the problems and fell from power two years later. A new government brought Britain out of the worst stages of the depression by using budgets and tariffs. Britain wouldn't go as far as deficit spending, though.…

    • 319 Words
    • 1 Page
    Satisfactory Essays
  • Good Essays

    The policies of the National Government in aiding economic recovery were a fact. National Government policies such as love interest rates, Imperial Protection and by the late 1930s rearmament did help reduce unemployment. It may well be argued that the fall in unemployment was a key factor for decreasing the growing number of recruiting extremist parties. Total unemployment was halves in 1933-38. It could be argued that most National Government policies were not that effective and that some policies in 1931-34 such as cuts in wages could’ve kept unemployment high by reducing demand. As the national level of unemployment fell, regional unemployment especially in old industrial areas started to pick up and remained high throughout the decade.…

    • 582 Words
    • 2 Pages
    Good Essays
  • Good Essays

    Labour Reforms 1945-1951

    • 1061 Words
    • 5 Pages

    How far did the post-war Labour Government meet the welfare needs of the British people between 1945-1951?…

    • 1061 Words
    • 5 Pages
    Good Essays
  • Good Essays

    In Address of the President Delivered by Radio from the White House - May 7, 1933, President Franklin D. Roosevelt considered the economic and society problems faced in 1933 were because the government did not interfere in American businesses such as industries, transportation, and farming which led to the Great Depression. The American economy’s trade and commerce had declined as the value of the dollar was unstable to the point where houses and businesses were being foreclosed and banks could not give out loans. If the government did not get involved, it would “… allow the foreclosures to continue, credit to be withheld and money to go into hiding, and this forcing liquidation and bankruptcy of banks, railroads and insurance companies and a recapitalizing of all business and all property on a lower level”.…

    • 643 Words
    • 3 Pages
    Good Essays
  • Better Essays

    “The unemployment rate went from 3.2 percent to an immense percentage of 24.9 in 1933 and from there it went up to 26.7 percent. At one time after the crash, thirty-four million men, women, and children were without any income at all not including farming families who were hit more severe” (Rothboard, 2000. Pg. XV). Due to the economy crashing, the government was scrambling looking for things to get the economy back on track.…

    • 1965 Words
    • 8 Pages
    Better Essays
  • Good Essays

    The American Smoot-Hawley Tariff Act of 1930 which adopted a protectionist trade policy made the situation worse. It was seen as a purely domestic measure to prevent the further fall of prices , but it provoked immediate retaliation by other governments and contributed to the contraction of international trade. Thus , the protectionist trade policy of the United States paved way for other countries to adopt the same…

    • 478 Words
    • 2 Pages
    Good Essays
  • Good Essays

    In the 1930’s the unemployment rate had reached its peak and as a result thousands of businesses had either cut their workforce or had gone out of business during the depression. The unemployment rate was about 25 percent and the economy had reached its low by 1933. “The economic recovery during this time was slow, uncertain, and far from being over”(“Compensation from before World War I through the Great Depression.”).…

    • 961 Words
    • 4 Pages
    Good Essays
  • Powerful Essays

    Bibliography: Abella, I, D. Bercuson, R. C. Brown J. L. Granatstein, B. Neatby. Twentieth Century Canada,…

    • 1837 Words
    • 6 Pages
    Powerful Essays
  • Good Essays

    Amidst the gloom and bleakness of the Great Depression, the New Deal alongside President Franklin D. Roosevelt’s leadership provided the glimmer of hope which allowed for the United States to persist through this time. Although, its ultimate purpose of ending this economic turmoil ceased to be attained. This can be seen as despite measures these actions did not change the economic state of the country. For instance, in History’s “The New Deal,” the authors states “That same year, the economy slipped back into a recession when the government reduced its stimulus spending. Despite this seeming vindication of New Deal policies, increasing anti-Roosevelt sentiment made it difficult for him to enact any new programs.” Thus, attesting to the ineffectiveness of the New Deal to truly bring the country out of this seemingly indomitable economic burden. Additionally, the New Deal brought about much debt,…

    • 399 Words
    • 2 Pages
    Good Essays
  • Good Essays

    In 1937, the United States was recovering from the Great Depression. As part of the recovery effort, President Franklin D. Roosevelt endorsed a series of economic programs, known as the New Deal, to help stimulate and rebuild the U.S. economy. The National…

    • 986 Words
    • 4 Pages
    Good Essays