Hostname: page-component-78c5997874-m6dg7 Total loading time: 0 Render date: 2024-11-09T09:23:38.941Z Has data issue: false hasContentIssue false

The Unemployment Policy of the National Government, 1931–1936

Published online by Cambridge University Press:  11 February 2009

Fredric M. Miller
Affiliation:
Temple University, Philadelphia

Extract

The British response to the mass unemployment of the 1930s was in striking contrast to that of the other major industrialized countries. Only in Britain was a policy of accepting the apparent logic of capitalism, and waiting out the slump, successfully maintained in a reasonably stable, democratic setting. In an article on ‘The New Deal, National Socialism and the Great Depression’, John A. Garraty wrote that ‘in both Roosevelt's America and Hitler's Germany economic objectives were subordinated whenever necessary to political aims’. In neither country was there ‘any consistently held theory about either the causes of the depression or how to end it’ Britain under the National government represents almost precisely the opposite case. First, the government's policy of minimal direct intervention to relieve unemployment was directed towards achieving its central objective of ensuring that the depression would cause no fundamental changes in existing economic and social relationships. Immediate political considerations were subordinated to this overriding goal, Secondly, the government's approach, though not all of its particular actions, was based on a rational, comprehensive and widely accepted theoretical foundation.

Type
Articles
Copyright
Copyright © Cambridge University Press 1976

Access options

Get access to the full version of this content by using one of the access options below. (Log in options will check for institutional or personal access. Content may require purchase if you do not have access.)

References

1 Garraty, John A., ‘The New Deal, National Socialism and the Great Depression’, American Historical Review, LXXVIII no. 4 (10. 1973), pp. 916, 943.Google Scholar

2 ‘Report of the Committee on Employment’, C.P. 36 (25 Jan. 1932), CAB 24/227 (all CAB references are to the Cabinet Papers, Public Record Office). For general accounts of unemployment relief see Evaline Burns, M., British Unemployment Programes, 1920–1938 (Washington, 1941)Google Scholar; Davison, R. C., British Unemployment Policy since 1930 (London, 1938)Google Scholar; Miller, F. M., Work or Maintenance: Unemployment Policy in Great Britain, 1931–1936 (Ph.D dissertation, University of Wisconsin, 1972)Google Scholar. An excellent general survey is Gilbert, Bentley B., British Social Policy, 1914–1939 (London, 1970)Google Scholar. The average weekly unemployment benefit for a family of four was about one-half the average weekly wage in the older heavy industries - 23s.-27s. as opposed to 455.-505.

3 Landes, David S., The Unbound Prometheus (Cambridge, Mass., 1969), p. 391, 394Google Scholar (Tables 25 and 28); Lewis, W. Arthur, Economic Survey, 1919–1939 (London, 1949), chaps, v-x.Google Scholar

4 See Aldcroft, Derek H., The Interwar Economy: Britain, 1919–1939 (London, 1970) pp. 269349Google Scholar; Richardson, H. W., Economic Recovery in Great Britain, 1932–1939 (London, 1967), pp. 182265Google Scholar; Pollard, Sidney, Development of the British Economy, 1914–1967 (London, 1969), pp. 175241Google Scholar; and Alford, B. W. E., Depression and Recovery? British Economic Growth, 1918–1939 (London, 1972).Google Scholar

5 Aldcroft, pp. 32–3, 41.

6 Burns, pp. 115, 157, 339–67; Pollard, p. 243.

7 Beck, G. M. A., Survey of British Employment and Unemployment 1927–1945 (Oxford, 1951)Google Scholar, Tables 18, 33 and 35; Beveridge, W., ‘An Analysis of Unemployment’, Economica, N.S., v, 4 (1937), p. 12.Google Scholar

8 Final Report of the Royal Commission on Unemployment Insurance, pp. 310–11, Parliamentary Papers, 19311932, XIIIGoogle Scholar; McCallum, E. D., ‘The Problem of Depressed Areas in Great Britain’, International Labour Review, xxx (08. 1934), p. 143Google Scholar; Parliamentary Debates, Fifth Series (House of Commons), v. 270, c. 266 (8 Nov. 1932).Google Scholar

9 Parliamentary Debates, v. 267Google Scholar, c. 1297 (23 Jan. 1932); v. 295, c. 1257 (5 Dec. 1934).

10 The Times, 22 Aug. 1934; Carr-Saunders, A. M., A Survey of the Social Structure of England and Wales (Oxford, 1937), p. 216Google Scholar; unemployment insurance statutory committee, First Report, p. 11, Parliamentary Papers, 19341935, XIV.Google Scholar

11 Cabinet 44 of 1936, CAB 23/84.

12 Panel on trade and employment, 3rd meeting (3 Feb. 1934), CAB 27/503; C.P. 36 (32), p. 8. See Clay, Henry, The Post-War Unemployment Problem (London, 1930)Google Scholar and the Treasury note appended to Skidelsky, Robert, Politicians and the Slump (London, 1967), pp. 409–13.Google Scholar

13 Committee on trade and employment, 10th meeting (6 Feb. 1934), CAB 27/502; The Times, 14 Mar. 1932; Alford, pp. 67–8.

14 Harris, José, Unemployment and Politics: A Study in English Social Policy, 1886–1914 (Oxford, 1972), p. 367.Google Scholar

15 Final Report of the Unemployment Grants Commission, 1920–1932, Parliamentary Papers, 19321933, xxvGoogle Scholar. In March 1931 some 33,000 men were employed on road programmes.

16 Davison, R. C., The Unemployed: Old Policies and New (London, 1929), p. 52.Google Scholar

17 C.P. 36 (32), p. 7; ‘Report(s) of Committee on Employment Policy’, C.P. 132, 138, 201 (21 Apr. and 13 June 1932), CAB 24/229.

18 Bretherton, R. F., Burchardt, F. A. and Rutherford, R. S. G., Public Investment and the Trade Cycle in Great Britain (Oxford, 1941), pp. 116–83Google Scholar; Manchester Guardian, 30 Nov. 1931; Aldcroft, p. 310; National Joint Council (of Labour), Workless: A Social Tragedy (London, 1933). pp. 56.Google Scholar

19 Aldcroft, p. 310; Bretherton et al. p. 181, Table 23. The budget in the early thirties was about £800 million of a G.N.P. of nearly £4,000 million.

20 In February 1933 when Chamberlain outlined the government's ‘unemployment policy’ he placed the restoration of confidence ahead of raising prices, cheap money and international co-operation (Parliamentary Debates, v. 274Google Scholar, c. 1224–39). The government was helped by the tendency of all unemployment debates involving party leaders to become discussions of international economic affairs (see Parliamentary Debates, v. 274Google Scholar, c. 1201–1337 (16 Feb. 1933)).

21 Richardson, pp. 206, 264–5; Aldcroft, pp. 73, 349; Pollard, p. 240.

22 Ministers were hindered by the absence of adequate statistical services (Alford, p. 71).

23 Burns, p. 157.

24 Daily Herald, 28 Sept. 1933; Manchester Guardian, 10 and 20 Oct. 1932; ‘Bill Papers, 1932–1934’, p. 9, PIN 3/34 (Public Record Office).

25 Unemployment committee, 1st meeting (30 Sept. 1932), CAB 27/490; ‘Report of the Unemployment Committee’, C.P. 357 (24 Oct. 1932), CAB 24/233.

26 Unemployment committee, 2nd meeting (6 Oct. 1932).

27 See Hannington, Wal, Unemployed Struggles, 1919–1936 (London, 1936), pp. 232–85.Google Scholar

28 Parliamentary Debates, v. 270Google Scholar (5–8 Nov. 1932) and c. 260; Unemployment committee, 7th meeting (9 Nov. 1932).

29 Panel on trade and employment, 1st meeting (14 Nov. 1932).

30 Committee on trade and employment, 1st meeting (14 Nov. 1932).

31 Ibid. 3rd meeting (16 Dec. 1932).

32 ‘Employment, 1932’, PREM 1/126 (prime minister's file, Public Record Office).

33 Committee on trade and employment, Memorandum and 3rd meeting (16 Dec. 1932).

34 Ibid. Memorandum (2g Dec. 1932) and 4th meeting (27 Jan. 1933).

35 Ibid. 4th and 6th (3 Mar. 1933) meetings.

36 Ibid. Memorandum (28 Feb. 1933) and 6th meeting.

37 Miller, pp. 175–8.

38 See Parliamentary Debates, v. 276Google Scholar, c. 302–481 (22 Mar. 1933) for the first debate in which recognizable concepts of modern economics were widely employed.

39 Committee on trade and employment, 10th meeting (3 Feb. 1934).

40 Bretherton et al., pp. 137, 151.

41 Parliamentary Debates, v. 276Google Scholar, c. 2605–7 (I2 Apr. 1933).

42 ‘National Council of Social Service’ file in ministry of Labour Papers, Memorandum (18 Nov. 1934), LAB 18/33 (Public Record Office).

43 Cabinet 7 of 1934, CAB 23/78.

44 Macmillan, Harold, Winds of Change, 1914–1939 (London, 1939), p. 295.Google Scholar

45 Cabinet 13 of 1934, CAB 23/78.

46 Parliamentary Papers, 19391934, XIII.Google Scholar

47 ‘Report of Examination of Report on Depressed Areas’, C.P. 220 (4 Oct. 1934), pp. 4, 83–4, CAB 24/250.

48 Ibid. pp. 3, 18, 20, 39–40, 52, 63–4, 83.

49 Committee on depressed areas, 1st meeting (11 Oct. 1934) and 2nd meeting (18 Oct. 1934), CAB 27/578.

50 Ibid. 2nd meeting and memorandum (31 Oct. 1934).

51 Ibid. 3rd meeting (1 Nov. 1934).

52 Parliamentary Debates, v. 295Google Scholar, c. 1266–1336 (14 Nov. 1934); v. 296, c. 686 (13 Dec. 1934).

53 Third Report of the Commissioner for Special Areas in England and Wales, Parliamentary Papers, 19361937, XII.Google Scholar

54 Report of the Unemployment Assistance Board, p. 54, Parliamentary Papers, 19361937, XIIGoogle Scholar. On training, see Davison, , British Unemployment Policy, pp. 115–34.Google Scholar

55 (First) Report of the Commissioner…, Parliamentary Papers, 19341935, x.Google Scholar

56 Second (p. 103) and Third (p. 27) Report(s) of the Commission…, Parliamentary Papers, 19351936. XIIIGoogle Scholar; 1936–7, XII.

57 Committee on depressed areas, Report (Sept. 1935), pp. 7, 9.

58 Committee on the Unemployment Assistance Board, Minutes and Memoranda, 1935, CAB 27/575 and 576.

59 Committee on depressed areas, 7th and 8th meetings (8 and 17 Oct. 1935); ‘Report of Committee on Depressed Areas’, C.P. 197 (18 Oct. 1935), p. 40, CAB 24/257.

60 Ibid. 8th meeting; Parliamentary Debates, v. 311Google Scholar, c. 870–4 (28 Apr. 1936).

61 Committee on depressed areas, Memorandum (Apr. 1936), p. 2.

62 Third Report of the Commissioner…, especially pp. 3, 13, 15–16.

63 Committee on depressed areas, Memorandum (9 June 1936).

64 Cole, G.D.H. and Cole, M. I., The Condition of Britain (London, 1937), pp. 212, 214–15.Google Scholar

65 The Times, 15 Oct. 9, 11 and 18 Nov. 1936; Manchester Guardian, 17 and 19 Nov. 1936.

66 Parliamentary Debates, v. 317Google Scholar, c. 1596–8, 1865 (18 Nov. 1936).

67 Aldcroft, p. 103; Agatha Chapman and Rose Knight, Wages and Salaries in the United Kingdom, 1920–1938 (Cambridge, 1953), p. 18.Google Scholar

68 Parliamentary Debates, v. 317Google Scholar, 1679 (18 Nov. 1936).

69 Report of the Unemployment Insurance Committee (Blanesburgh Report), (H.M.S.O., 1927), pp. 34–5; Report of the Unemployment Insurance Statutory Committee, p. 9, Parliamentary Papers, 19351936, XVII.Google Scholar

70 Beck, Table 33.

71 Richardson, pp. 220–1; Aldcroft, p. 306; Pollard, pp. 213–14.

72 Parliamentary Debates, v. 297Google Scholar, c. 2209 (14 Feb. 1935).

73 Blake, Robert, The Conservative Party from Peel to Churchill (London, 1970), p. 245.Google Scholar

74 The Times, 16 July 1935.

75 Craig, F. W. S. (ed.), British Election Manifestos, 1918–1966 (Chichester, 1970), pp. 7685Google Scholar; Party, Labour, For Socialism and Peace (London, 1934)Google Scholar; Herbert Samuel's speech in Parliamentary Debates, v. 270Google Scholar, c. 233–7 (7 Nov. 1932); Bevin, Ernest, My Plan for 2,000,000 Workless (London, 1933).Google Scholar

76 Parliamentary Debates, v. 276Google Scholar, c. 440 (22 Mar. 1933).

77 Leuchtenberg, William E., Franklin D. Roosevelt and the New Deal (New York, 1963), p. 130Google Scholar; U.S. Bureau of the Census, Historical Statistics of the United States (Washington, 1960), pp. 73, 143711.Google Scholar

78 Guillebaud, C. W., Economic Recovery of Germany from 1933 to…1938 (London, 1939)Google Scholar; Lewis, pp. 95–6.

79 Harrod, Roy, The Life of John Maynard Keynes (London, 1951), pp. 441–2Google Scholar; Winch, Donald, Economics and Policy: A Historical Study (London, 1969), p. 218.Google Scholar