Great Britain: The Causes Of The Great Depression

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The Great Depression Since World War I, Great Britain was struggling to pay for the damages in that war. In 1925 Winston Churchill with the British Gold Standard Act changed Great Britain’s currency to Gold Standard. Gold standard currency is “ is a monetary system where a country 's currency or paper money has a value directly linked to gold. With the gold standard, countries agreed to convert paper money into a fixed amount of gold.” Some causes of the start of the Great depression in Great Britain were the decreasing in worldwide trade (declined global demand affected the economy a lot), economic worldwide crisis, collapse of private investment, the Stock market crash of the USA, returning to Gold Standard,and Labor government lacking control of the situation. The Great Depression affected by increasing unemployment in Great Britain by 2.5 million, stopped trading, and transportation companies went bankrupt because there were no products to transport, taxes increased,and started the devaluation of the gold standard. Great Britain debt was 180% of the national GDP. But, because businesses decreased its prices it was easier to pay for luxuries. 3 million houses were built and free milk was offered at schools. People started to have better health. Great Britain overcame the depression by going off the Gold Standard in 1931, reducing interest rates, The Special Areas Act and the building of many council homes that gave more money to the economy. Also the parliament approving
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