Was There A Depression In Britain In The 1930s?

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                Kate Wilkinson 9H 26/04/07

Was There A Depression In Britain In The 1930s?

        From 1929 to the mid 1930’s the Great Depression occurred. It was so big it affected almost every country as the effects of it carried on and on. However, for different people in different places things weren’t always so bad. I shall explain how the ‘Depression’ affected various people.

        One group of people who were affected by the Great Depression was the government. In America, the Wall Street Crash, the stock market had collapsed. In just one day 12,894,650 shares were sold. America had to withdraw its loans to Europe and so the Great Depression began. The Labour party became more and more divided as the different people wanted to do different things to amend the depression. The Prime Minister Ramsay MacDonald eventually formed an all-party “National Government” as international banks refused to accept the British pound. The depression had split the government, so what would do to the people?  

        During the Great Depression there was a huge impact on the old industries such as coal mining. This was because people neither wanted nor needed the old industries so much any more as new things such as cars and hoovers were becoming more desirable. Also, because trade was low, the ship companies became out of business, and because they didn’t need as much or even any materials to work with any more such as iron, steel or coal, people who worked in these ‘material’ industries were also put out of work. Every time some people lost their jobs, other people were bound to too.

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        Because of this huge chain of unemployment, life became much tougher for the unemployed. Before the last war a quarter of all households were living below the poverty line. They could no longer afford to buy luxuries such as cakes and sweets or many new clothes. In the 1920s unemployment pay was given out which was paid through taxes. However, as more and more people lost their jobs, the taxes began to rise. The government therefore decided to cut the unemployment pay (also known as dole money) by 10%. They also said (in 1931) that anyone who wished to receive ...

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