After world war 1 Britain has a post-war boom. But it is very misleading becuase then we suffer the fastest economic collapse ever.

In 1919 Britains share of world trade was 25 percent , by 1929 this has fallen to 16 percent.

Lot of unused consumption during the war.Individuals don`t want to spend money, manufacturers start producing raw materials so they can produce goods for individuals.

Governments started to borrow money so that they can help this to happen.

In 1919 and 1920 we have full order books for exports. Result of which is we have full employment. Long term prospects for international trade are not good. Industrial output fell by 10 percent in one year. Main problem for Britain is that is in the staple industries. There are 5 staple industries - coal, iron, steel, mecahnical engineering, ship building and textiles.

Between 1919 and 1929 number of workers falls from 4.5 million 3.4 million ( 25 percent loss ).

The two main reasons why exports are in trouble are -

(1) International trade is generally much weaker than before the war.

(2) Our share is smaller - exports are much less competitive than other countries, especially

The American depression worse than ours. 1929 – 1933 the GNP has fallen in America by 29 percent. Industrial output falls by 50 percent. One third of the population have no job or work very short time.

Depressed areas – usually only has one or a narrow range of social services.

The world depression at the early 1930`s

In America and Germany they develop machinery to cut the coal and also to convey they coal mechanically.We produce coal cheaper this way and you need much less labour.

Some topics in this essay:
Britain Effects, America Cotton, NOTES British, Americans Japanese, Dominance America, Main Britain, America Germany, Britain Depressed, Britain Germanys`, Stanley Baldwin, industrial output, start building own, staple industries, countries begin, cotton textiles, 10 percent, international trade, building own, 25 percent, start building, labour government,