national gov policies
Policy
Benefits
Limitations
Financial – Balanced budget, means test, 10% cuts in unemployment benefits, cut wages of public employees, “cheap money” lowered interest rates to 2%
Wages cut of public employees helped maintain international confidence and stopped banking crisis.
Bank of England was able to lower interest rates when coming of the Gold Standard in 1932.
Industries could borrow money to invest in modern machinery.
Consumers could borrow money for mortages to buy houses.
Provided work and demand for furniture and fittings.
Stopped the banking crisis.
Private housing boom by 2 million houses built in 1930.
Closed down uncompetitive shipyards, mills and mines, did mean that those who survived in business could attract new investments.
1930 coal mines had more modern machinery.
Unemployment rose 1932-33
1931 cuts didn’t save the Gold Standard. National gov was supposed to protect the finance.
Leaving gold standard meant the pound fell in value. Making exports cheaper.
Other countries left the gold standard and fell in value too.
Other countries introduced tariffs making exporting more difficult.
More exports were sold to the empire countries but this meant a decline in exports to usa and Germany. Lowered total demand for goods and services.
Houses build were for the idle class who had steady jobs so could take advantage of cheap mortages and low prices.
Houses built in private sector.
Only 700,000 council houses built 1932-1940.
Trade: cotton industries reorganization act 1936, Ottawa conference 1932, marketing boards, british shipping assistance act 1935, import duties act 1932.
Marketing boards provided security for milk and potato farmers. Gave subsides for livestock and sugar beet growers.
Cotton industry reorganization act closed down non profitable mills and reduced profit capacity in the industry.
British shipping assistance act provided gov loans for shipping companies to scarp older ships and build new ones.
At the Ottawa
Benefits
Limitations
Financial – Balanced budget, means test, 10% cuts in unemployment benefits, cut wages of public employees, “cheap money” lowered interest rates to 2%
Wages cut of public employees helped maintain international confidence and stopped banking crisis.
Bank of England was able to lower interest rates when coming of the Gold Standard in 1932.
Industries could borrow money to invest in modern machinery.
Consumers could borrow money for mortages to buy houses.
Provided work and demand for furniture and fittings.
Stopped the banking crisis.
Private housing boom by 2 million houses built in 1930.
Closed down uncompetitive shipyards, mills and mines, did mean that those who survived in business could attract new investments.
1930 coal mines had more modern machinery.
Unemployment rose 1932-33
1931 cuts didn’t save the Gold Standard. National gov was supposed to protect the finance.
Leaving gold standard meant the pound fell in value. Making exports cheaper.
Other countries left the gold standard and fell in value too.
Other countries introduced tariffs making exporting more difficult.
More exports were sold to the empire countries but this meant a decline in exports to usa and Germany. Lowered total demand for goods and services.
Houses build were for the idle class who had steady jobs so could take advantage of cheap mortages and low prices.
Houses built in private sector.
Only 700,000 council houses built 1932-1940.
Trade: cotton industries reorganization act 1936, Ottawa conference 1932, marketing boards, british shipping assistance act 1935, import duties act 1932.
Marketing boards provided security for milk and potato farmers. Gave subsides for livestock and sugar beet growers.
Cotton industry reorganization act closed down non profitable mills and reduced profit capacity in the industry.
British shipping assistance act provided gov loans for shipping companies to scarp older ships and build new ones.
At the Ottawa