Economic Growth in Britain in the Inter-War Years: A Reassessment

The view is still firmly held that the inter-war years were depressed and rather wasted years as far as Britain’s economy was concerned. This is certainly the layman’s impression of the period and many scholars have continued to pass unfavourable judgement on these years.1 In many respects this interpretation is not altogether surprising since this period was notable for its high unemployment and stagnating exports. Throughout the period one million men or more were out of work, while even in the best years the volume of exports was no more than 80 per cent of the 1913 level. Furthermore, a number of basic industries, such as cotton, coal and shipbuilding, were seriously depressed or in decline. But it is probable that the depressed sectors have attracted too much attention in the past and this has resulted in a failure to recognise the important gains achieved in these years. There is a good deal of truth in the remark made by G. C. Allen some years ago, to the effect that it was the persistence of heavy unemployment that gave the inter-war years such a bad name.2 Recent work on the growth and structure of the British economy suggests, however, that Britain’s economic performance was by no means as black as often painted and that a revision of the traditional view is required.