This section delves into the intricate dynamics of Britain's National Government, formed in a period of economic despair and political instability, and explores the concomitant rise of extremism.
Economic and Political Conditions Leading to the Formation of the National Government
- Post-World War I Britain: The end of WWI left Britain with substantial war debts and a crippled economy. The nation faced high unemployment, declining industries, and social discontent.
- 1929 Global Financial Crisis: The impact of the 1929 Wall Street Crash was profound, sending shockwaves through the global economy. Britain, heavily reliant on international trade, was severely affected, with unemployment skyrocketing and industrial production plummeting.
- Political Turmoil: The existing Labour government, led by Ramsay MacDonald, found it increasingly challenging to manage the economic crisis, leading to widespread criticism and political instability.
Formation of the National Government
- Coalition Formation: In response to the crisis, a coalition government, termed the National Government, was formed in 1931. It was a coalition primarily of Conservatives but also included some members from the Labour and Liberal parties.
- Primary Objective: The coalition was tasked with tackling the economic crisis, with a focus on reducing the budget deficit and restoring public and investor confidence.
Key Policies of the National Government
Fiscal Policies
- Austerity Measures: The government implemented stringent austerity measures, which included significant cuts in public spending and reductions in unemployment benefits.
- Tax Increases: There were also increases in taxes, aimed at reducing the budget deficit.
Monetary Policy
- Abandoning the Gold Standard: In a landmark decision, the government abandoned the Gold Standard in 1931. This move allowed the pound to devalue, making British exports more competitive, which was a boost to the industrial sector.
Trade and Protectionism
- Introduction of Tariffs: The government introduced tariffs to protect domestic industries from foreign competition, marking a shift from free trade to protectionism.
Effectiveness of These Policies
- Economic Recovery: These policies initially helped stabilise the economy. By the mid-1930s, there was a recovery, particularly in industries like housing construction and consumer goods.
- Criticism: However, these policies were also criticised for exacerbating unemployment in certain sectors and regions, and for widening the gap between the rich and the poor.
Rise of Extremism in Britain
Fascist Groups
- British Union of Fascists: Founded by Oswald Mosley in 1932, the British Union of Fascists (BUF) promoted authoritarian and nationalist ideologies, drawing inspiration from fascist regimes in Italy and Germany.
- Public Appeal: Initially, the BUF attracted a significant following, particularly among those frustrated with the traditional political parties and the ongoing economic hardships.
Communist Influence
- Communist Party Growth: The Communist Party of Great Britain (CPGB) also saw an increase in membership, appealing to the working class and those disillusioned with the capitalist system.
Societal Responses to Extremism
- Public Resistance and Protests: Both fascist and communist groups faced significant public resistance. The most notable instance of public opposition to fascism was the Battle of Cable Street in 1936, where thousands of people, including local Jewish, socialist, anarchist, and communist groups, clashed with the BUF and the police.
- Legislative Measures: The government's response included the Public Order Act 1936, which was designed to restrict the activities of extremist groups. This Act required police consent for political marches and banned the wearing of political uniforms in public.
The National Government's Handling of Extremism
- Balancing Act: The National Government had to balance the need to maintain public order and civil liberties while dealing with the rise of extremist ideologies.
- Critique of Government Response: Some historians argue that the government's response to extremism was tepid and reactive, rather than proactive and robust.
Impact and Legacy
- Economic Impact: The policies of the National Government laid the groundwork for Britain's eventual recovery from the economic downturn of the 1930s.
- Political Legacy: The period of the National Government is viewed as a critical phase in interwar British history, shaping the political landscape in the lead-up to World War II.
- Social Consequences: The rise and response to extremist groups during this era reflect the broader social and political challenges Britain faced, revealing deep-seated tensions and divisions within British society.
The National Government's tenure was a defining period in British history, marked by significant economic recovery efforts, political realignments, and the challenge of addressing extremism. The policies and events of this era had lasting impacts on British society and politics, setting the stage for the nation's approach to the impending global conflict of World War II.
FAQ
The National Government addressed unemployment through a series of measures, albeit with mixed results. They introduced public works programs intended to create jobs, especially in sectors like construction. The government also implemented training schemes to help workers transition into emerging industries. However, the austerity measures, which involved cuts to public spending, had a contradictory effect by reducing employment opportunities in certain public sectors. Critics argue that while these policies had some success in lowering overall unemployment rates, they were insufficient in addressing long-term unemployment and regional disparities in joblessness.
Public perception of the National Government's handling of the economic crisis was mixed. Initially, there was a broad consensus supporting the coalition's formation, as it represented a unified approach to tackling the economic challenges. The government's decision to leave the Gold Standard and introduce tariffs was generally viewed as a necessary step towards economic recovery. However, the austerity measures, particularly the cuts in unemployment benefits and public spending, faced significant criticism for exacerbating social inequalities and neglecting the needs of the working class. Over time, the government's policies led to growing public discontent, especially in regions hardest hit by the economic downturn.
The decline in popularity of the British Union of Fascists (BUF) was primarily due to several factors. Firstly, the public's strong resistance to fascist ideologies, as seen in events like the Battle of Cable Street, significantly hindered the BUF's ability to gain widespread support. Secondly, the government's legislative measures, such as the Public Order Act 1936, effectively limited the BUF's activities and reduced its visibility. Additionally, Oswald Mosley's leadership style and the BUF's increasingly radical policies alienated moderate supporters. The international context, particularly the growing awareness of the atrocities committed by fascist regimes in Europe, further contributed to the BUF's declining popularity.
The National Government's policies in the 1930s had varying impacts on women and minorities. Economic austerity measures led to reduced social services, disproportionately affecting women, especially those in working-class families. Many women, already facing employment challenges, found fewer job opportunities as the government's policies did not prioritise female-dominated sectors. Additionally, minorities, particularly in regions reliant on struggling industries, faced heightened economic and social challenges. The government's focus on industrial recovery largely ignored the specific needs of these groups, leading to increased marginalisation and highlighting the era's limited understanding and recognition of gender and ethnic diversity in policy-making.
The National Government's shift towards protectionism, marked by the introduction of tariffs, significantly influenced British industries. By imposing tariffs on imported goods, the government aimed to protect domestic industries from foreign competition. This policy benefitted certain sectors, such as manufacturing, by reducing foreign competition and encouraging domestic consumption. However, it also led to retaliation from other countries, which imposed their own tariffs on British goods, negatively impacting industries reliant on exports. The approach was a departure from the previous free trade policy and reflected the government's attempt to boost the economy during a period of global economic uncertainty.
Practice Questions
The National Government's economic policies in the 1930s were partly effective. The decision to abandon the Gold Standard in 1931 facilitated a devaluation of the pound, boosting exports and aiding industrial sectors like housing and consumer goods. However, the austerity measures, including severe cuts in public spending and unemployment benefits, disproportionately affected the working class, exacerbating unemployment in certain regions. While these policies contributed to a gradual economic recovery, they were criticised for widening social inequalities and failing to address regional disparities, reflecting a partial success overshadowed by significant shortcomings.
The rise of extremist groups in the 1930s, notably the British Union of Fascists and the Communist Party, significantly impacted British politics and society. These groups capitalised on the public's disillusionment with traditional politics amidst economic hardship. The British Union of Fascists, under Oswald Mosley, briefly attracted substantial support with its authoritarian and nationalist rhetoric. However, widespread public resistance, exemplified by the Battle of Cable Street, and government legislative measures like the Public Order Act 1936, limited their influence. This period highlighted a societal rejection of extreme ideologies, reinforcing Britain's commitment to democratic principles despite prevailing economic and political challenges.
