Depression was felt world wide especially in America and Britain. America was affected by the wall street crash more than other countries because many people held shares and due to prices falling were unable to pay their debts which led to financial ruin. Due to many people relying on trade from America and little money being available meant that America could not provide trade to the same extent as previous years. Britain was badly hit by depression in areas where industries such as coal, steal and shipbuilding were based. Due to de

As a result of the labour party splitting a National Coalition Government was formed. This party consisted of the whole Conservative party and a minority of the Labour party. The coalition party was led by the ex labour prime minister Ramsey McDonald. The National Government continued on the same line as the labour party which was to use laissez faire and balance the budget. The first thing they did was to introduce the proposals of the May Committee which meant that Means Testing was introduced and benefits were made available for a period of 26 weeks. These changes led to a public out cry and clearly showed that laissez faire was not the right way to tackle the economic problems.

mand for trade in these areas being low many of these industries had to lay off their workforce or even close down. Due to these redundancies and closures the levels of unemployment rose. Areas in Britain which were drastically affected by these closures were Clydeside, South Wales, the North East of England and Northern Ireland. During this time of high unemployment figures peaked at 3 million. This level of unemployment stayed the same for !

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