The Great Depression in Britain
What Started The Great Depression?
- The government started raising income taxes
- They cut employment pay by ten cents
- The government introduced a new means test
The Negative Side of Things
- Unemployment in the U.K rose to over 2.5 million.
- Importing goods were going down and this harmed trade industries severely.
- Businesses went bankrupt because people were saving their money for important things.
- The government made all of this work by cutting pay off by ten cents.
The Positive Side of Things
- Prices fell dramatically, which was good news for the rich because they could be able to afford more luxuries.
- Work improved and gave workers holidays off with pay.
- Over three million news houses were built.
- Radios, vacuum cleaners, washing machines, and TV’s were introduced during this time.
- Better diets came to light which meant healthier citizens.
Did They Start New Programs?
Britain had to create the Public Assistance Committee in order to help determine which workers were able to qualify for financial assistance. The U.K also dropped the Gold Standard, which protected the value of the British money in the global economy. The Unemployment Act was passed to help assist with insurance. A lot more programs and acts were passed during this hard time.
Did They Choose A Different Leadership?
The leadership in the U.K stayed the same during the Great Depression.
Did they move from capitalism to another economic system?
Great Britain stayed the same with their economic system.
What helped end the Great Depression?
- The government started to reduce interest rates which, in return, reduced people’s debt payments and made more money available.
- The Special Areas Act was introduced to the British and it tried to bring light industries to needed areas.
- Councils built over five hundred thousand council homes, which brought more money into the economy.