Prosperity for some (Depth 5)

• The Depression affected different areas of Britain in different ways, creating regional differences.
• Although the north and north east, where heavy industry was concentrated, were hard hit, the Midlands and south east were relatively prosperous. In those areas of Britain dependent on the heavy, staple industries, the Depression was severe and enduring. However, the south and south east experienced remarkable growth and prosperity.
• The skills of the workforce in the south and south east were readily adapted to the new, light industries that were being developed after WW1, leading to investment and therefore growth and fuller employment. The shipyards, iron and steel industries and mines, however, employed people with very specific and mainly non-transferable skills. When these industries declined, the workforce had nowhere else to go.
• The new, light industries were readily able to meet the growing post-war demand for convenience and leisure goods, such as radios and cars, refrigerators and vacuum cleaners, newspapers and magazines. This stimulated the growth of the building industries, electrical engineering, chemical and printing trades.
• The car industry produced 33000 cars in 1913, 95000 in 1923 and 511000 in 1937.
• After being run down during the war, the housing industry revived and in the early 1930s was responsible for the most rapid rate of house building in British history. Between 1924 and 1935, over 1 million houses were built for local authorities to rent out to council house tenants, and 2 million of houses were built for private purchase. All these houses needed furnishing and equipping with consumer durables, which in turn stimulated demand in those industries.
• It is clear there was a north and south divide in Britain, and one that was to lead to despair and mutual lack of understanding. This was made worse by having a London-based parliament that was struggling to manage the economy in turbulent national and international times.