Lesson Objectives Know: how the Wall St Crash affected Britain and the staple industries Understand: that not all industries and regions suffered equally and that there were a variety of ideas put forward to solve the problems Be able to: combine information from various sources

Learning Outcomes All: will describe the key effects of the Wall St Crash & depression on Britain and the staple industries (D-E) Most: will understand and explain the variety of potential solutions put forward to remedy the economic downturn (C-B) Some: will understand the clash of ideas over solving the depression was a battle between orthodox and radical economic theories and identify pros and cons of each (A-A*)

Wall St Crash Oct 1929 Immediate effects USA Businesses in downward spiral Imports dropped Unemployment rose Banks closed Recalled their loans to Europe UK Loss of American markets Reduction in European trade L/T effects From the end of 1929 to 1931 the value of British exports fell by half Unemployment already 1m+ due to decline in staple industries* Long term structural decline Unempl 2.5m m 1932 *coal, shipbuilding

Recap – the Staple Industries. What were they? Where were they? What problems had they already experienced by 1929? How and why would the Wall Street crash worsen this situation?

Your task: Using the map of the UK 1932: and the information on the next slide..... Make notes to explain how, when and where unemployment rose in the period. Use the map on pg 57, the map, graphs and text pg Use the questions on pg 67 to help you explain the trends.

Staple Industries: cotton, coal, iron & steel shipbuilding, heavy engineering This are the key industries of the British economy on which Britain's wealth rested in the C19th. Before 1914 they had accounted for almost half of Britain’s total output, 25% of employment and 75% of exports. Their decline was to be a major problem for most of the inter-war years. Throughout the 1920s unemployment remained at 10-15% of the insured workforce. Britain’s share of the world export market fell from 18% to 11%. Cotton Found it difficult to win back pre WW1 trade. Much machinery was outdated. Coal Mines in serious need of modernisation. Lord Sankey had recommended nationalisation post-war but the Cons had rejected this. The average coal mine was over 50 years old. Industrial relations were poor. Iron & steel Shipbuilding Restrictive practices. Heavy industry The age and backwardness of the staples pushed up production costs and made them less competitive. Going back on the Gold Standard in 1925 raised the cost of exports by 10%. No consistent govt policy to assist the declining industries to restructure and modernise. Strikes and disputes meant they lost output and markets. Notes taken from page 58 onwards.

How do we solve the financial crisis?  MacDonald (PM) and Snowden (Chancellor)  Oswald Mosley (Labour MP)  John Maynard Keynes (economist) What proposals did these key figures offer to deal with the economic crisis. Use Collier, pp and move on to Rees, pp and Lynch, p.118. Identify the strengths and weaknesses of each proposal

Plenary.... 1)By what percentage did the value of exports fall between ? 2)How many were unemployed in 1929? 3)And by 1932? 4)What date was the Wall St Crash? 5)How was Germany able to pay reparations to the Allies? 6)Why was the cotton industry in decline? 7)Who had recommended nationalisation of the coal industry? 8)How much did the cost of exports rise by as a result of going back on the Gold Standard in 1925?

Plenary.... 1)By what percentage did the value of exports fall between ? 50% 2)How many were unemployed in 1929? 1.3m 3)And by 1932? 2.7 to 3m 4)What date was the Wall St Crash? Oct )How was Germany able to pay reparations to the Allies? Loans from USA 6)Why was the cotton industry in decline? Old machinery & loss of markets from WWI 7)Who had recommended nationalisation of the coal industry? Lord Sankey 8)How much did the cost of exports rise by as a result of going back on the Gold Standard in 1925? 10%