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The Great Slump or the Great Depression was the worst economic situation in the history of the world. Edit 39 0 Tags. Theory Y – liberating and developmental. Control, achievement and continuous. Copy of Douglas Macgregor. Implications for Christian Business Education. Studies indicated that the Great Slump was the largest and most economic depression in Britain. It emerged that the problem began in the US and swiftly spread worldwide. Inthe United Kingdom had never experienced the economic boom like other economies such as Canada, the United States, Australia, and Germany in the s.

To this effect, the United Kingdom reported a less severe impact of the depression compared to other economies. Unfortunately, the employment rate also plunged across all sectors.

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Bythe country reported about 3. Undeniably, the economic problem had hit the mining and industrial areas, especially in the Northern Ireland, Scotland, Wales, caldeirarix the North of England. In the early s, appostila unemployment rate stood at 70 percent as about three million people losing their jobs nationally. In most cases, many families depended on the dole, local government payment, for survival.

The Labor Party was severely hurt compared to the Conservative Party that dw dominating the period. Given the significance of the great depression, the paper provides the causes of Great Depression regarding the Great Britain. It started at a time when Britain was still struggling to overcome the impact of the World War I. Unfortunately, the country never recovered from the situation until the end of the significant slump. The United Kingdom suffered greatly from the economic depression as it to withstand the problem for over twenty years.

Unlike other great economies, the United Kingdom saw its economic output decline in the late s until the mids. The Australian wpostila had frozen the accounts because caldeirraria foreign countries failed to repay their debts. Interestingly, the foreign exchange controls only served the interest of preventing war. The European countries were the cause of the financial instability. These countries had accumulated huge debts because of the First World War involvement.

With the huge debts, the European economies could rarely dw and rebuild their economies in the s. However, for the United Kingdom, it had opted to finance its wars through the selling of its foreign assets. The country knew that it had overcome the financial trap that affected other economies. For example, the UK lost its British Merchant Navy that saw it lose forty percent of the merchant fleet.

The U-boat attacked leading such unimaginable loss of the merchant fleet.

As a result, the UK replaced the merchant fleets after the war. Bythe British had lost its foreign investment by twenty percent due to enemy actions. The country lost its foreign exchange earnings.


Spostila, the United Kingdom became more vulnerable to any crises in the global markets. Indeed, the war disrupted trading activities as British lost its ships.

British also lost its overseas customers because the country could not produce its traditional exports including coal, steel, and textiles. The United Kingdom depended on the heavy industries that supported its export trade such as steel, shipbuilding, and coal mining. In the early s, the British industrial output was about percent. The exports also stood at about eighty percent during the pre-war levels. Therefore, the UK had insignificant resources to restore the overseas investment position.

Indeed, it posed difficult situation even in the leading economies such as the United States and Russia. With the significant economic losses, the faith of people seemed shattered because many economies could not run smoothly with minimal interventions.

There are various causes of the Great Slump. The Gold Standard Collapse Figure 1: A historical paper about the Gold Standard The standard gold puzzle has proved difficult to explain as it underscores the floating-exchange-rate system and fixed-exchange-rate system.

Under the flexible-exchange-rate system, the exchange rate depended on the supply and demand conditions present in the foreign exchange market. On the other hand, the fixed-exchange-rate ee allows other stakeholders to determine or fix the exchange rates at a particular level. The gold exchange or standard meant that the international communities maintained the value of currency on gold by agreeing to sell and buy gold in exchanging for money at a fixed rate.

The gold standard formed the basis xe a fixed-exchange-rate system. However, it had appeared that interwar gold standard seemed mismanaged, thus causing deflation leading to the banking panic. Recent studies have indicated that Great Depression has resulted in the emergence of blame regarding the international gold standards.

The interwar gold standard structural flaws and the policy responses seemed to have followed the rule of the game. The move led to the global monetary deflation and contraction that turned inevitable.

The interwar gold standard became substantially apowtila down and disappeared by The breakout of the First World War was a great setback in the international trade.

Bythe United Kingdom was already experiencing a slow economic recovery. The slow recovery later led to the slump.

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Bythe Winston Ttaados, who was the Chancellor of the Apostiila, opted to restore the pound sterling following the Bank of England advice. Nonetheless, the British exports remained more expensive on the international markets. Due to overvaluation, the country experienced significant gold outflows and trade deficits upon returning to the gold market. In response, the UK tried to restrain the gold flow by raising the interest rates significantly.

Bythe UK suspended the gold standard thus allowing the country to recover. Unfortunately, in the world markets, the value of gold had remained over-estimated by about 14 percent. The impact of the reduced value of exports products led to a slowed economic recovery.

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There was a need to offset the effects. The export industries opted to cut costs by reducing the wages of the workforce. However, the situation never improved as the industrial areas remained stuck in recession throughout the s.


The industries traaeos mentioned earlier received the minimal investment and modernization in the world markets. As a result, the economy experienced the worst unemployment rate that saw over one million people lose their jobs.

Different stakeholders felt that the United Kingdom seemed overvalued. The UK wanted to keep the value of its currency to the gold standards. As such, the government opted to cut budget deficit using the fiscal consolidation. The government had believed that the strategy would help in cxldeiraria the Pound within its pegged rates in the gold standard.

German war reparations and global financial imbalances Inthe parties involved in the war assembled at the Palace of Versailles, Paris. The parties wanted df discuss the armistice political terms.

The parties engaged in the discussion included the Austro-German Alliance and the Entente. However, calderiaria emerged that both sides lost their economic grip because they had suffered greatly from the war.

For example, both sides reported shattered economies, high unemployment, massive debts, high inflation, and depreciated and devalued currencies. Indeed, Russia owed Britain and France money that Russia only paid back in the s. The Britain government also borrowed money from the United States. The victors including the United States, Argentina, and Canada, seemed concerned about how they could recover debts. With the war destructions, the countries rarely had the guts to repay their debts. Indeed, the borrowers never expected the losers to pay, for example, where reparations exposed were high.

The reparation exposed imposed on some losers was greater than their sizes. Aposfila prophesized the stumbling blocks in reviving the international trade. With lacking the capital to buy raw materials abroad, the United Kingdom was already facing difficulties meet the global market demand. As such, the country started experiencing depression. Stock market crash Figure 2: A newpaper article on Wall street stock crash. In ca,deiraria, there was the worst dd market crash that precipitated into calfeiraria global recession.

The United States was hit harder than any other nation in the world.

It followed the increasing credit just before the crash. However, for the United Taados, the country had never reported any real credit boom by the early s.

Undeniably, the United Kingdom was already facing a prolonged economic stagnation. The situation worsened in when UK reported the worst GDP that was falling at 5 percent per annum. Labor government and economic crisis Figure 3: People protesting about losing their home.

The Labor government ascended to power in with the support of the liberal party. The minority Labor government never understood to fix the economy.