The Great Depression (2024-2025) PDF

Module: ASCC Level: L3 Groups: 1-2-3-4-5-6 Teacher: Dr. Zeyneb Yousfi Academic year: 2024-2025 The Great Depression ‘When America sneezes, the world catches a cold” Introduction: The Great Depression was an immense economic world-wide tragedy that caused...

Module: ASCC Level: L3 Groups: 1-2-3-4-5-6 Teacher: Dr. Zeyneb Yousfi Academic year: 2024-2025 The Great Depression ‘When America sneezes, the world catches a cold” Introduction: The Great Depression was an immense economic world-wide tragedy that caused millions of people around the world to lose their livelihoods. It began in 1929 and lasted until the early 1940s, only coming to an end after the eruption of the second world war. The Wall Street Crash of 1929 in America is regarded as the first major event that signalled the beginning of the great depression and as the saying goes ‘when America sneezes the world catches a cold’ Britain, too, was severely hit by the financial crisis and experienced its fair share of the hungry thirties. From 1929 to 1933 Britain’s economy collapsed making the life of the majority of its citizens full of hardships including unemployment, poverty, hunger and poor public health. (The following entries are taken from the BBC Bitesize website) Britain during the depression years: Unemployment: One of the main effects of the Depression was the significant increase in unemployment in Britain. It rose to 2.5 million in 1933. This was 25 per cent of the workforce. Areas of heavy industry in Northern Ireland, Scotland, Wales and the north of England were worst hit, including the following industries: coal iron steel shipbuilding These industries were already struggling because they had not modernised after the war causing them to cramble. For example, when the Palmers Shipbuilding and Iron Company closed down in Jarrow in the north-east of England, the town’s unemployment rate rose to 68 percent, and it was said the town of Jarrow effectively 'died'. Another example is the Rhondda Valleys which also suffered from a dramatic rise in unemployment, with a rate that was higher than 40 per cent. What made matters worse is the fact that the circle of unemployment did not seem to end, its impact was reaching out more people to other businesses. The 2.5 million who were unemployed had no wages and could not buy things. This had an impact on the demand for goods produced in Britain, and more businesses went bankrupt which then led to more unemployment. The problem was not helped by the fact that unemployment benefit, the dole, was not enough to cover basic costs such as food and clothing. The dole and the Means Test: People who lost their jobs depended on unemployment benefits, otherwise known as the dole. A man without work was entitled to benefit from the unemployment insurance scheme for the first six months. However, to cut costs, the government introduced the Means Test in 1931. Officials visited families to assess whether they were entitled to help. This involved finding out how much the families earned or possessed. In order to qualify for dole, a worker had to pass the Means Test, and the sum paid to each family would be based on this test. Families with some savings or a small additional income found their dole was reduced. The officials who carried out these tests were often seen as insensitive, and many families were offended. The test created many problems for families. Tensions were caused because, if an older child had some work, or a mother had a part-time job, or a grandparent was living in the house without paying rent, the Means Test could result in dole being refused. Heirlooms and items such as pianos had to be sold, and savings spent before the dole was received. To make matters even worse, the dole was cut by 10 per cent in 1931. Hunger Marches: During the 1930s, as well as local protests, there were also many protest marches from the north-east of England and south Wales. The people living in these areas were becoming more militant because they had been experiencing high levels of unemployment, poverty, malnutrition and disease for some time. The government seemed incapable of dealing with the problems or, at worst, appeared to be indifferent to the plight of the poor. Protesting in the areas in which they lived appeared to have little impact on the government, so it was decided to widen the protest. Marches to London were organised to confront the government and, in doing so, gain much needed publicity. It was hoped that the media would be encouraged to report their story and highlight their plight. In October 1932 there was a large-scale march on London by 2,500 workers from all over the country. Trade unionists played a major role in organising the march and in arranging food and shelter for the marchers. They presented a petition to Parliament demanding the abolition of the means test and protesting about the 10 per cent cut in benefits. Perhaps the most famous protest march was the Jarrow Crusade of 1936. The people of Jarrow, a town in north-east England, were desperate and organised a meeting with a Cabinet minister to seek help. Unfortunately, they were told to go home and work out their own salvation. To gain publicity for their cause, the people of Jarrow organised a non-political march to London. 200 men, in their Sunday best, led by the Mayor of Jarrow, the MP Ellen Wilkinson and some town councillors, marched peacefully in step for over 450 km. They were looked after in parish halls and gained great support along the way. However, there was little support from the government when, after eight months, they reached London and the Prime Minister, Stanley Baldwin, simply ignored the petition. Even more frustrating to the people who had marched is the fact they were told their dole payments were reduced due to the fact that they had made themselves unavailable to work during the time they were marching. 'Making ends meet' Unemployment could result in poverty, a failure to meet basic living costs, and a sense of hopelessness. Poverty affected the lives of many people, both physically and mentally. The pressures of surviving on the dole and dealing with the stress of the Means Test made life difficult, and people struggled to make ends meet. The male was usually the sole breadwinner, so when he lost his job the whole family suffered. Often, the women had to make the greatest sacrifices. They would eat the smallest portions at meal times as they struggled to feed their families. Families of the unemployed ate a lot of cheaper food, eg potatoes and bread with margarine, but little of more nourishing food types, eg meat, vegetables, fresh fruit and milk. This made them more likely to suffer other illnesses. One survey in Stockton-on-Tees showed that a poor family was likely to spend only 3 shillings (15 p) per head on food every week, whereas a more wealthy family spent at least 6 shillings (30 p). In 1936, 4.5 million British people had an inadequate diet. Women often neglected their own health, eg not purchasing medicine when they were ill. Official reports confirmed that the figures for deaths in childbirth and women’s illnesses were higher in Wales than in the rest of Britain.According to government statistics, between 1931 and 1935 the death rate in women between 15 and 35 years old was more than double in areas of high unemployment compared to other areas. Having a child during these years could be very difficult. Not only because of the increased death rate, but also providing the basics like milk and nappies, which were often replaced with things like sugar water and old newspapers. New industries, new consumers and new employers: A number of new light industries emerged in the 1930s. Many of these new industries were powered by electricity instead of coal, so they did not need to be built near coalfields. They could be built in nearby areas of high population such as the Midlands and south-east England. New goods came into production such as cars, radios, cookers and fridges. They were mass-produced in modern factories. Clever advertising was used to encourage consumers to buy these items through. The most purchased car, the Austin 7, could be bought for only £125 in 1936. This was £100 cheaper than in 1923. 2 million cars were sold in 1938. By 1937 over half the households, even in the poorer areas of Wales, had a radio. More houses had electricity, so people were attracted to the new electrical consumer goods. Major employers included car producers such as Ford of Dagenham, Hoover (vacuum cleaners) at Isleworth, west London and Cadbury at Bournville, Birmingham. The end of the depression, the beginning of the war: By 1936, old industries, which once made the glory and the industry of the British empire shrinking, new ones, such as the manufacture of light bulbs, were springing up, providing employment, and bringing more light relief. The government wanted to ensure that these industries benefited areas that’d been hit hard by the Depression, so they introduced the Special Areas Act of 1934, which encouraged business-owners to found factories - and so provide jobs - in the worst affected areas. But during this time, a dark force was also stirring on the continent. In 1934, Hitler became Führer. After Germany’s defeat in World War One, he wanted to restore the country’s former glory by claiming back lost land. In particular he had his sights set on Sudetenland in Czechoslovakia. Believing that Hitler had good intentions, and that he’d stay true to the peace agreement, other European nations appeased him by letting him have Sudetenland. But when Hitler’s true intentions to conquer surrounding nations became clear, Britain had no choice but to prepare for war. In 1938, war seemed ever more likely, so Britain started collecting metal for ammo, recruiting air-raid shelter wardens, distributing gas masks, installing anti-aircraft guns and barrage balloons, and building warships. All this work meant Britain was suddenly very busy, as there were so many jobs to be done, which helped drag the country out of the Depression.