Britain’s Economy in 1914 History Essay Example

The economy of Britain was in a strong decline by 1914 for a variety of reasons. Issues in agriculture and free trade, economic concerns and external competitions are among those factors.

The problems in agriculture caused Britain’s economy to decline as British farmers were forced to reduce their production as the steamships and railways meant that the grain from North American green lands were sold cheaper than what British farmers could produce, causing British farmers to suffer and causing a decline in the British economy. British farmers also had foreign competition as in 1914 Britain only consumed 40% of the food, they produced which could only last 3 days per week, so Britain depended on wheat from USA and Canada and refrigerated ships which brought cheap meats from Australia, New Zealand, and South America. This shows how Britain struggled to feed its own country conveying how Britain’s economy was in a strong decline. However, some positive aspects of agriculture were that it was good for producers, cheap foods meant that there are greater number of real wages for worker and that in the short term it was good, even though in the long term it’s damaging. 

An economic concern had begun between 1870 and 1914 as a ‘trade gap’ occurred. Britain was ahead of Germany and USA in the iron and steel output however, their world exports declined. Their imports grew faster than exports which caused the ‘trade gap.’  The economies of Germany and USA had become stronger than Britain’s again showing foreign competition as a reason for the decline in British economy. However, despite the fact that Britain's share of global trade was decreasing, global trade was growing quickly, and British goods were selling in higher amounts than before. Nevertheless, the economic concerns were another factor in causing the decline in British economy in 1914.  

Free trade issues linked to the British economy's downfall since the country's free trade strategy was weak. This was due to the competition Britain faced, as Germany and the United States utilised tariffs to protect their markets from competition, whilst Britain maintained a policy of open trade between countries. Because of the liberal government's policy, foreign traders could access the to the British market easily, and Britain was unable to negotiate tariff reductions with other countries as the other countries are protected. This shows how the British economy was in decline in 1914.

In conclusion, in 1914 Britain’s economy was in declining. This was mainly due to Britain not being able to match the rivalry of its peers, Germany and USA, which explains the country’s economic decline.