To What Extent Did The Depression Have An Impact On Society In Britain During The 1930's?

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Andrew Beale

12HLM History Essay

To What Extent Did The Depression Have An Impact

On Society In Britain During The 1930’s?

In 1929 a significant event occurred in America, which was to affect almost the whole world. The ‘Wall Street Crash’ plunged America and many other countries into a state of depression that would last the best part of 10 years. This all came about because people began to take their shares from the stock market, which was because they had lost faith in it. A huge misdistribution of wealth and money also played a key role in the Depression.  The unequal distribution of money was between the rich and the middle class, between the industry and agriculture within the United States, and between the United States and Europe. It slowly increased throughout the 1920’s.  The increased manufacturing output added to the gap between the rich and working class people. The output (of production) increased a lot while the worker’s wages only increased a small amount.  Because of the unequal distribution of money, the economy became unstable.  The large amount rumours about the stock market kept it artificially high, and it eventually led to huge market crashes in the future.  As a result, the American economy was left in ruins. Due to this America called in all of its loans to other countries in order to recover, but this also left these countries in a state of Depression. What made it worse was Britain could only pay back its some of its loans whilst receiving reparations from Germany, who were borrowing money from the U.S.A in the Dawes/Young plans. This resulted in America stopping loaning money to Germany, who slowed reparations to Britain and France, which meant they couldn’t pay back their loans to the U.S.A straight away. In this essay I aim to find out if all consequences of the Depression were bad, if the impact was regional, as well as answering the main question. I hope to use historian’s views in my essay.

        Perhaps the biggest most disruptive consequence of the Depression was Unemployment. After World War One, industries such as coalmining, textiles, iron and steel, and shipbuilding (which had provided almost three quarters of the country’s exports) suffered hugely. This along with the Depression brought around with it the terrors of mass unemployment. The War had resulted in losing markets to industrial rivals such as America and Japan, which reduced demand for British goods. Due to this as well as an over-valued currency, weakness in finance, and manager-worker relations, there was a depression in these industries, which had once made Britain a dominating power. This resulted in many workers being unemployed. Large areas were affected by unemployment because the workers didn’t have any money to spend (either they were unemployed or their wages had been lowered), which meant that shops had to close down - this had a bad effect on the economy and society in general because there was less money going through the system. The coal industry that had been so profitable was almost ruined, and many workers were left unemployed and in poverty because their employers could not afford to pay their wages and had to make them redundant. People who were on the Dole were basically being paid to be unemployed, and they also didn’t have to pay taxes. The only reason that there was not poverty in Britain as bad as there was in Germany, for example, is because this country had a much more generous system for the unemployed (even more than the U.S.A) in the 1930’s. Another bad thing about the Unemployment is that the National Insurance schemes didn’t pay out everyone. This meant that money that was desperately needed by some people, which they were entitled to, wasn’t being sent to them.

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 J. Stevenson and C. Cook’s views of unemployment at the time point out (in ‘Britain in the Depression’), that the dole allowed the unemployed to afford the necessities of life and therefore helped to ‘defuse popular discontent’.

        The people that were affected by the depression the worse had a terrible lifestyle, and could not even afford good food. The majority of people who were living in poverty bought Spam, which wasn’t the best of foods, but could be used for many different types of meals. Another terrible fact was that when Seebohm Rowntree did a survey in York in 1934 ...

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