Great Depression and effect on Britain

The depression caused rates of unemployment in Britain to rise dramatically, the amount of unemployment had a big impact of the social health of British people. By the early 1930's extreme poverty had become common, 12% of the country's population was surrounded by it, this had adverse effects on standards of nutrition and millions of people were getting ill balanced diets, queuing at soup kitchens became a way of life for many as their unemployment benefits could barely cover the cost of their rent and heating let along food or clothing. The mass unemployment also led to hunger marches such as the Jarrow Crusade in Britain. Millions of people were living in extreme poverty. Pneumonia was eight times more common and Bronchitis was ten times more common among the poor than those who were better off. The rates of infant mortality also went up. George Orwell described life for the unemployed in Northern England as 'several hundred men risk their lives and several hundred women scrabble in the mud for hours... searching eagerly for tiny chips of coal in slagheaps so they could heat their own homes. For them, this arduously-gained 'free' coal was more important almost than food.'

Since the unemployment pay was paid through taxes, the government had increased the taxes and also had cut the unemployment pay by 10%. By 1931, they had created a 'mean test' for those who wanted to receive the dole money (unemployment pay). The mean test involved an official visting the person's home to check if they are receiving any sort of income. Historian J. Stevenson mentions 'Alongside the pictures of the dole queues and the hunger marches must also be placed those of another Britain, of new industries, prosperous suburbs and a rising standard of living.'

The government was spending 2 million pounds a day, which was more than what they had available. The May Committee which was headed by Sir George May, reported to the Labour cabinet with its suggestions to end the crisis. The prime minister asked for spending cuts but the government could hot agree on them. He then formed an all-party National Government, which was seen as a temporary measure, to execute the cuts. The government then started reducing public spending. Judges had they pay cut by 10%, teachers by 15% and they took 10% out of unemployment benefit.

The depression hit Britain regionally and not by class. Whilst North of England were suffering, the industries of the Midlands and South East England were blooming. The new industries were in great demand. They were industries such as electronics, car manufacturing and chemicals. These industries did not use steam engines and electricity was available easily. Also, goods produced were directly at the consumer. These industries employed people who had better education and the ones with more wealth and power, so as the industries grew, so did the employees' wealth. Britain was divided between the two different living conditions. Despite unemployment rate was initially as high as 13.5% in the South, the later 1930s were a prosperous time, as suburban house-building boom was fuelled by the low interest rates which followed the abolition of the gold standard. People near the South were buying more luxuries, while people in the North had to live in one or two roomed houses. Historian K.Laybourn mentions 'In industrially depressed towns such as Jarrow and Brynmawr, there can be little doubt that the conditions of working class families were much worse than they had been in pre-war years.'

Although many people suffered, there were still people who benefitted. The high unemployment rates throughout Britain meant that prices were kept low, people with regular wages were able to buy more for less. Four million new houses were built in the 1930s. An income of 200 pound a year was enough to own a house, mortgages were easy to get and interest rate was low. The cost of cars were halved, and people who work could afford new houses with electricity. D.H. Aldcroft mentions 'the nation generally was better fed and clothed, and was housed in better conditions than those prevailing before the war.'

The War Street Crash was not the only factor to be blamed for the depression in Britain, as it is not one single factor that is entirely responsible for the depression, we can say that the Wall Street Crash was just a catalyst for the events. Not only did it have many negative effects but also a lot of positive effects, but these effects were separated by region. The traditional industries of the North were badly affected which caused poverty and poor health. However, there was an economic boom in the South where new industries had increased and people were well off.