Tag Archives: New Zealand

IN Europe as in America, the leading democratic nations — Great Britain and France — faced the problems of the great depression. In those nations, too, the question arose: Could democracy survive, or would it give way to totalitarianism? Would the people turn instead to fascism or communism? Although Britain had a brief period of prosperity immediately after World War I, of all the world’s democracies, it was struck hardest and soonest by the depression. For Britain had a special problem. A highly industrialized country, it lived by its exports. It sold manufactured goods and coal to other countries and imported its food. Even before the war, Britain had begun to lose its markets. Other countries were making wool and cotton cloth, which was one of Britain’s most important exports. New fuels were developed that were replacing coal. More and more countries were using high tariffs to keep out foreign goods. After 1918, the situation became even worse. The fact that Britain had long been an industrial country was now working against it. Its machinery and manufacturing methods were old-fashioned and could not compete with the modern machinery and methods of other lands. Exports fell, factories shut down and millions of Britons were out of work. Britain had had unemployment insurance as early as 1911. Now the payments were increased and the unemployed went “on the dole,” as they called it. The government also provided old-age pensions and some medical and housing aid, but the people felt that the unemployment and other benefits were too small and they were dissatisfied. They began to turn to the Labour party. Up to this time, Britain’s strongest political parties had been the Conservative party and the Liberal party, with the Labour party a poor third. In 1922, the Labour party became second only …