In I. People’s spending habits were variable and
In Table I, the unemployment rate in UK increased
until the beginning of the 1930’s and stayed high until the Second World War..
Especially, in 1932, the unemployment rate reached the top point by 15% in the
UK history. This caused insufficient demand in the economy and lead to
motionless economic growth. In Table II, UK experienced both inflation and
deflation in 1920’s after the World War
I. People’s spending habits were variable and its also damaged the economy. In the third table, UK economy experienced negative
real GDP growth rate in the Depression and later, the real GDP Growth rate
increased until the beginning of the Second World War II. In 1930, UK’s real
GDP growth rate decreased 7 points in a year and this showed that how the UK
economy was affected from Great Depression. Britain abandoned Gold Standard in
1931 and improved terms of trade and domestic banking system.Anglo – French Relations
– French relations based on very long time ago. From time to time, they saw
each other as a friend and as a enemy. The first armed conflict happened in
1066 with Norman Conquest and the second one happened in 1337 with Hundred
Years’ War. They had remained as enemy until the Entente Cordiale in 1904.
Colonial race in Africa, change of balance of power in Europe and common
interests brought Great Britain and France together before the First World War.
France – UK partnership played an important role in winning the war but after
the war, France faced with some serious problems. Larger number of human loss
and lower birth rate caused a great manpower demand in France. Though
victorious, France lost 1.5 million men in World War I, and had 3.5 million
wounded. In addition, the problems with African colonies and the difficulties
with the petite bourgeoisie from the left were the most important issues that
France should must deal with in post-World War I in domestic politics. In
foreign policy, France faced with German threat in inter-war period. Therefore,
France must make new alliances with great powers to reduce tension in Europe in
Britain continued the close co-operation with France after Entente Cordiale. Especially,
the dictators who Musolini in Italy in 1923 and Hitler in Germany in 1933 came
to power in Europe forced to act Great Britain and France jointly. In 1919
League of Nations was a failure attempt in peacekeeping process and countries
needed to sign agreements for defence and protecting their borders against
aggressive countries. In 1925, Locarno Treaty was signed by Germany, France,
Belgium, the United Kingdom, and Italy. Locarno divided borders in Europe into
two categories: western, which were guaranteed by Locarno treaties, and eastern
borders of Germany with Poland, which were open for revision.
these two big European power had opposite ideas in some topics. Britain must
protect its own trade balance in interwar period and Britain had close
relationships with its own colonies. Thus, Britain supported the idea of
imperial free trade and protectionism that would have seen large tariffs placed
on goods from France. Furthermore, France saw itself inherently as a European
power and with the fear of German militarism, France supported armament policy.
However, Britain thought that disarmament was the key point for peace.