Economic Recovery During The 1 :: essays research papers

During the 1920s numerous economic problems occurred in Britain. However the main problems did non occur until 1929 when the argue Street Crash occurred. The Wall Street Crash involved persona prices falling to about 1/4 or even less(prenominal) than what they were bought for. This essay will examine how Britain was impact during the 1930s and will tactual sensation at the reforms introduced by the National Government. This will be done by examining cardinal areas namely Depression, wearys Response, National Governments Response and other reasons for recovery. By examining these four areas it will hopefully become evident whether or not the reforms introduced by the National Government contributed to economic recovery.Depression was felt world abundant especially in America and Britain. America was affected by the fence in street crash more than other countries because many people held shares and collect to prices falling were unable to pay their debts which led to financ ial ruin. Due to many people relying on mete out from America and little money be available meant that America could not provide trade to the same boundary as previous years. Britain was badly hit by depression in areas where industries such as coal, steal and shipbuilding were based. Due to demand for trade in these areas being low many of these industries had to lay off their hands or even close down. Due to these redundancies and closures the levels of unemployment rose. Areas in Britain which were drastically affected by these closures were Clydeside, South Wales, the North East of England and Northern Ireland. During this period of graduate(prenominal) unemployment figures peaked at 3 million. This level of unemployment stayed the same for a menstruum of three years.Overall it give the bounce be seen that depression occurred world abundant and that full economic recovery was going to be hard to achieve. It can also be seen that it was going to take a long time to achie ve full economic recovery especially in areas which relied on traditionalistic industries.The first party to try and tackle the economic problems was the Labour party led by Ramsey McDonald. Labours approach to tackling the economic problems was to follow the traditional line of the classical economists which was to balance the budget and use laissez faire. Laissez faire meant that the government did not get involved in the economy. Their immediate response was to introduce 10% wage cuts for those working in the public sector e.