Britain economy 1

• By 1851 Britain dominant country try in the world in its industrial outputs.leading nation in coal steel and cloth production
• Free trade


  • Selling at competitive price both at home and abroad
  • Led to increase in trade and encouraged further economic growth
• 1880s protest against free trade in 1881 the fair trade league argued for more protectionist approach as other countries started to impose tariffs on British goods
• Economic cycle

  When the economy fluctuates between periods of prosperity + growth known as boom and slumps
• Boom


  High standards of living + employment + productivity
• Slump


  Productivity + employment + demand for goods fall + standard of living declines
• Free trade


  Economic system where no tariffs placed on goods being imported to a country able to compete with local producers for sales
• Protectionism


  Economic policy of restricting import as from other countries by placing tariffs on imported goods
• Laissez-faire


  The government deliberately not getting involved in people's lives or in affairs of business
• 1850-1873 economic prosperity + period of significant economic growth = mid Victorian boom
• Britain dominated the world economy = workshop of the world
• Produced over 40% total traded manufactured goods
• 25% of worlds trade passed though British ports
• Britain leading nation in coal steal + cloth production
• Great exhibition 1851 demonstrated to rest of world the variety of skills quality of Britain manufacturing industries
• Economy grew on average by 3% per year
• Railway construction increased
• Value of cotton cloth produced rose for £46M in 1851 to £105M in 1875
• Coal production increased from 60M tonnes in 1855 ti 109M tonnes by 1870 throughout Europe
• 1/3 of all British goods were exported to the British empire
• Lack of competition abroad unchallenged 20 years
• 1873-96 industrial difficulty starts long economic decline
• Britain classed as workshop of the world but most raw materials provided by British colonies
• Cyclical downturns happened in the years 1873-79 1882-86 1890-96 seemed worse as it followed period of outstanding growth
• Rate of production in major industries of coal steel cotton increasing but more slowly
• Fall in prices meant smaller profits for manufactures + workers
• 1886 unemployment reached peak of 10% = hardship + sense of depression
• By 1900 Britain imported 50% of its food + raw materials for industry = benefited from low import prices
• Wages not fall = rise in standard of living
• Depression in agriculture remained
• Successful diversification into other areas of farming
• Evidence of boom


  • Agriculture
  • Industry
  • Trade
• Evidence of problem


  • Agriculture
  • Industry
  • Trade
• What made the economy strong in the period 1851-1880
• Protectionism


  • Traditional conservative ideology
  • Protect from foreign competition
  • Higher prices on foreign goods = limiting choice
• Free trade


  • Liberal ideology
  • More choice + lower prices
  • Less gov intervention
• The years 1870-1914 the economic growth did slow down due to the increase in competition and countries abandoning free trade resulting in a slow growth. Some refer to this period as a depression as try economic growth had significantly slowed down, but this occurred as a result of the increased competition therefore not really a depression
• 1850 Britain produces 40% of worlds traded manufacture goods
• 25%of worlds trade passed through British ports
• Textiles 60% of britians exports