Economy 1873-1914

• Causes of mid-Victorian boom


  • Golden age of agriculture
  • Developments of technology
  • Britain leading nation compared to others + nature of Britian empire
  • Government policies
  • Infrastructure
• Causes of depression decline in economy


  • Other countries competing (USA + Germany)
  • Other countries using advanced tech + investing
  • Britain not investing in new technology
• Not a depression period was a slow down in growth compared to the rapid expansion of the economy prior to 1870
• Industry - Output of iron + steel continued to increase despite competition from Germany + USA


  Continued to remain profitable years till 1914
• Industry - Britain not expanding rapidly in new industries sectors


  Such as electrical engineering + chemicals production like germany + USA
• Agriculture - Cheap imports of cereals in 1870


  Pressure on British farmers forced to reduce production
• Agriculture - Livestock farmers faced competition


  As steamships with refrigerators allowed cheap meat to be imported from abroad = profits soared
• Trade - Britain still covered from invisible earning


  From insurance shipping charges + banking services = vaster profits to British economy
• Trade - German imports and size of trade gaps began to increase 1870


  britian remained commercial centre unchallenged + dominated
• Service sectors - Increase in variety of employment


  In service industries includes hotel + restaurants + transportation + communication + public health and education + banking finance
• Service sectors - 1900 total female workforce fallen to 1/3


  Shortage of domestic servants
• Cobden-chevalier treaty = between France + Britain encourages free trade throughout Europe


  1860
• Germany introduces tariffs

  1879
• France introduces tariffs

  1882
• USA introduces tariffs

  1883
• Britain imposes tariffs on colonies

  1890
• Chamberlain begins his tariff reform

  1902
• Invisibles = banking finance + insurances still helping economy
• Britain importing more than it's exporting costing British economy
• Chamberlains reform campaign 1902


  Money raised from tariffs used to fund social reform + modernise British industry
• Positions on Chamberlain's tariff reform


  • Liberal unionists supported tariff reform = chamberlain resigned to work full time on TRC
  • Conservatives = hostile to reform
  • Liberals + Labour = committed to free trade
• Working class + middle class

  Saw this stomach tax worries costs of food
• Tariff reform campaign


  Led to split of Conservative Party in 1905 + liberals win 1906 election
• 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
• Period of significant economic growth and prosperity

  1850-1873
• Britain dominated the world economy and was known as the workshop of the world
• Britain produced over 40% of total traded manufactured goods
• 25% of the world's trade passed through British ports
• Britain was the leading nation in coal, steel, and cloth production
• The Great Exhibition of 1851 demonstrated the variety and quality of Britain's manufacturing industries
• The British economy grew on average by 3% per year during 1850-1873
• Railway construction increased from 9,500 km of track in 1850 to 22,000 km by 1875
• The value of cotton cloth produced rose from £46M in 1851 to £105M in 1875
• Coal production increased from 60M tonnes in 1855 to 109M tonnes by 1870 throughout Europe
• One-third of all British goods were exported to the British Empire