British economy in the 1930's

A detailed Summary of British economy in the 1930's

How far can the fortunes of the British economy in the 1930s be explained in terms of British industrial decline?

After the Wall Street Crash of 1929, the economy of those countries dependent on trade collapsed due to the crisis in America. Britain was one of these countries. The aim of this essay is to establish the extent of the effect that Britain's industry had on her economy after this depression.

There is no doubt that the stock market crash had a profound and disastrous effect on the economy. Between 1929 and 1931 the value of British exports fell by 50%, and Britain had a trade deficit of L100 million. There were also 3 million people unemployed in 1931. All of this goes to show that at the beginning of the decade, the British economy was in crisis not because of industry, but because of the collapse of share values in America. Despite this, it was American investors that formed the majority of Britain's 'new' industries, such as the Ford car company and the Hoover Corporation. These industries, whilst booming in the South, totally bypassed the North of the country, and only provided 7% of employment in 1934. Therefore, these newer industries did not really have a significant effect on he economy as a whol

The question that I am trying to address is how much the economy of Britain in the 1930s was dependent on the industry of the country. Although there is a strong case for saying that the economy was dependent on the industrial growth of the country, it is also possible to conclude that there is not a definite link, but perhaps a coincidental one. Although the economic boom of the mid to late 1930s coincided with an upturn in the fortunes of the staple British industries, the two may not necessarily be linked, as it is well documented that the economy has cycles of boom and bust lasting roughly 10 years. The absolute industrial growth may have simply occurred at the same time as one of the boom periods. Industry was still in relative decline, as other countries were racing ahead of Britain in new technologies such as plastics and electronics. The economic boom of this period was perhaps inevitable after the disaster that was the Wall Street Crash, as the government had to take drastic measures to ensure the recovery of the country's economy.

There can be no disputing the fact that in the years directly subsequent to the Wall Street Crash, the British economy was in crisis. As I have already said, this was nothing to do with the industry of Britain, and so it is possible to reason that the fortunes of the economy cannot be conclusively explained in terms of industrial decline. However, from 1934 onwards, industry was actually in absolute growth, as production was increasing year by year. This coincides with a boom period in British economy, especially after 1936, when the British army began an extensive rearmament programme, which created 1 million jobs. This, together with the housing boom and the growth of the newer industries such as car manufacture, meant that the British economy was prospering at the same time as an absolute industrial growth. Therefore, although other countries were growing at a faster rate, and Britain was in relative decline, the industrial sector was still growing, as was the economy.

Britain of the e

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Approximate Word count = 1383
Approximate Pages = 6 (250 words per page double spaced)

Category: History