Describe The Effects Of The Depression On Britain In The Early 1930's

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Describe the effects of the Depression on Britain in the early 1930’s

A depression is a long-term economic state characterized by unemployment and low prices and low levels of trade and investment; this causes the economy of the effected country to decline. This is what happened in Britain between 1918 and 1932, Britain’s economy began to slump after the First World War but the depression took real effect after the Wall Street Crash of 1929 in the USA. The Wall Street Crash caused a shockwave of depression to be sent around the world, including Britain. Britain, however, was hit in a peculiar way. The South East and Midlands experienced a sort of ‘economic boom’ caused by the increased amount of new industries located in those areas. In contrast the North of England and South Wales were suffering terribly with the depression and felling the full effects of the Wall Street Crash due to the increase in unemployment rates and extreme poverty. In this essay I will examine what effects the Depression had on Britain, both economically and socially.

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Not all industries were badly effected by the depression, there were four main industries that were devastated by it, the ‘staple industries’, these were the industries that created the foundations of Britain’s economy. These industries were: Shipbuilding, Steel & iron, Cotton and Coal mining. These industries were badly affected for a reason; no countries could afford to buy Britain’s goods as they were expensive and could be bought cheaper from countries such as Japan and Germany. Also many of Britain’s industries relied on each other to buy their goods, for example. Shipbuilding required coal and steel to build the ...

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