How Successful Were the National Governments in Bringing...

How successful were the national governments in bringing economic recovery in Britain in the years 1931-1939? The National Governments experienced moderate success in bringing about economic recovery in the years 1931-1939. It would be inaccurate to say that the policies of the governments were the only contributing factor as they alone were not sufficient enough to tackle the harsh economic climate, but for the most part the National Governments were responsible for a moderately successful economic recovery. The National Governments put in place several significant policies that were successful in bringing about economic recovery in Britain. In 1932 the decision was made to lower the bank rate to 2% which was beneficial to the†¦show more content†¦Conversely, the National Governments were not successful in the sense that they did little to solve the problem of unemployment. They took little direct action and didn’t create public work schemes to stimulate economic growth, instead preferring more orthodox approaches to economics. The government intervention that did take place was minimal and limited such as the Special Areas Act of 1934, which gave only limited financial aid to depressed areas and protests about unemployment by unions and through hunger marches did little to change policy. The government were not interventionist and it’s possible to say that it was only the process of rearmament from 1935 that led to the creation of more jobs. However, it wasn’t solely the government that was influencing the economy, there were other factors that played a vital role in Britain’s recovery too. For example, the expansion of the economy was mainly in new industries such as electrical engineering, which grew at between 4-5% per annum, and expanded so rapidly that in the 1930s electricity consumption per head of population increased by 70%. 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