Britain in Crisis : The British Economy, 1929-1931
"Reconstruction, Recovery, and Peace" became the key words of the Twenties, just as "Planning” became in the Thirties. The crisis of 1929-31 left behind an era of sorts. As the fog cleared it became ever more apparent that Britain had lost forever, her pre-war eminence. The events which follow brought about startling changes in what had been unquestioned orthodoxy. When Britain returned to the gold standard people looked forward to a return to 'normalcy'. It was assumed by many that Britain would take up her old position as world financier. Once again then, things would return to their pre-war prosperity. Everywhere economists believed that the boom and bust cycle of which had plagued the capitalist system for so long, was now gone forever. The depression came, however, to an unsuspecting world like a hurricane. Britain's second Labor Government had the misfortune of being in office at the time and was sent scrambling to meet the challenges of the day. These challenges were not the fault of men, but of inherent weaknesses in the system. An attempt will be made to shed light on these weaknesses and the reaction administrators take to them.