Great Depression I Think It Reaction Paper

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Prices would fall and farmers lose money when their techniques are more efficient because in that scenario there would be a surplus of agricultural products on the market that automatically causes a drop of prices. Where crops are rare, there is under surplus and prices will eventually rise. Where there is a fall of agricultural prices and a slump in industrial orders, industrialized nations and those supplying primary products (food and raw materials) are all affected in one way or another (About the Great Depression 2). Great Britain (Economic Handout Point 8b): Britain fortunes improved after leaving the gold standard. Under the Gold Standard, which linked currencies to the value of gold, governments were committed to maintaining fixed exchange rates. The British economy stopped declining soon after Britain's abandonment of the gold standard in September 1931, though genuine recovery did not begin until the end of 1932 (Romer 2). Great Britain (Economic Handout Point 8e i): Passing of the Housing Acts of 1936 and 1938. This bill provides funds for the clearing of slums to be replaced with new housing.

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The Housing Acts of 1936 and 1938 provided subsidies aimed at encouraging slum clearance, and maintained rent control (Britannica Concise Encyclopedia: Arthur Neville Chamberlain: Domestic policy 2). Great Britain (Economic Handout Point 8e ii): Despite these innovations the British electorate for its appeasement of Hitler condemned this government. Arthur Neville Chamberlain became Prime Minister of Britain on 28th May, 1937. Over the next two years Chamberlain's Conservative government became associated with the foreign policy that later became known as "appeasement." Chamberlain believed that Germany had been badly treated by the Allies after it was defeated in World War I. He thought that by agreeing to some of the demands being made by Hitler, he could avoid a European war (Appeasement 1). As the policy of appeasement failed to prevent war, those who advocated it were quickly criticized. popular opinion was turning violently against the policy and almost everyone scrambled on to the anti-appeasement bandwagon. The appeasers now became objects of scorn (Dutton 2).

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