AHC/WI: Make "A Country fits for Heroes'' become real, not a failed promise

Thomas1195

Banned
During the Coupon Election, Lloyd George declared that he would make Britain "a country fits for heroes". During the early days of the postwar Coalition, there was significant efforts to do so. Various major social reforms were passed:

- The Workmen's Compensation (Silicosis) Act of 1918 (which was introduced a year later) allowed for compensation to be paid to men "who could prove they had worked in rock which contained no less than 80% silica." The Education Act 1918 raised the school leaving age to 14, increased the powers and duties of the Board of Education (together with the money it could provide to Local Education Authorities), and introduced a system of day-continuation schools which youths between the ages of 14 and 16 "could be compelled to attend for at least one day a week".The 1920 Blind Persons Act provided assistance for unemployed blind people and blind persons who were in low paid employment.

- The Housing and Town Planning Act 1919 provided subsidies for house building by local authorities, and a total of 170,000 homes were built under this Act. Under the 1919 Housing Act, 30,000 houses were constructed by private enterprise with government subsidy. The Land Settlement (Facilities) Act 1919 and Land Settlement (Scotland) Acts of 1919 encouraged local authorities to provide land for people to take up farming "and also to provide allotments in urban areas."

- In 1919, the government set up a Ministry of Health, a development which led to major improvements in public health in the years that followed, whilst the Unemployed Workers' Dependants (Temporary Provisions) Act of 1921 provided payments for the wives and dependent children of unemployed workers. The Employment of Women, Young Persons and Children Act (1920) prohibited the employment of children below the limit of compulsory school age in railways and transport undertakings, building and engineering construction works, factories, and mines. The legislation also prohibited the employment of children in ships at sea (except in certain circumstances, such as in respect of family members employed on the same vessel).

- The National Health Insurance Act 1920 increased insurance benefits, and eligibility for pensions was extended to more people. The means limit for pensions was raised by about two-thirds, aliens and their wives were allowed to receive pensions after living in Britain for ten years, and the imprisonment and "failure to work" disqualifications for receiving pensions were abolished. In addition, pensions were introduced for blind persons aged fifty and above.

- Old age pensions were doubled, efforts were made to help returning soldiers find employment, and the Whitley Councils were established to arbitrate between employees and employers.

However, these far-sighted reforms were substantially rolled back by the Geddes Axe, especially in education. Besides, the more traditional wing of the Unionist Party had no intention of introducing reforms, which led to three years of frustrated fighting within the coalition both between the National Liberals and the Unionists and between factions within the Conservatives themselves. These, together with Cash for Honours scandal and Chanak crisis, had led to the fall of the Coalition and destroyed Lloyd George's political career.

Now, what should have been done to make Britain a true "Land fits for Heroes" instead of just an unfinished promise?

Take a POD in 1st January 1918.

 
@Thomas1195

- Old age pensions were doubled, efforts were made to help returning soldiers find employment, and the Whitley Councils were established to arbitrate between employees and employers.
If they could hit upon the beginnings of Keynesian economics, for example, if the economy is under-performing due to lack of private demand, then gov't can provide public demand. Or, in other words, gov't is employer of last resort.

And then, no way is the response to the Great Depression as passive and no way does Germany pull so far ahead. The entire history of the mid-20th century is different, maybe more.
 

Thomas1195

Banned
If they could hit upon the beginnings of Keynesian economics, for example, if the economy is under-performing due to lack of private demand, then gov't can provide public demand. Or, in other words, gov't is employer of last resort.

And then, no way is the response to the Great Depression as passive and no way does Germany pull so far ahead. The entire history of the mid-20th century is different, maybe more.
Demand deficient recession was exactly what happened between 1919-1923, which caused high unemployment that existed until mid-1930s.

A POD between 1918 and 1923 is needed to make Keynesian economics to be adopted during the 1920s, when the condition was much better and earlier than in the 1930s.

Of course, don't expect things to be better than IOTL during the 1918-1923 period because any government during that period would be Tory or Tory-dominated.
 

Anderman

Donor
A POD between 1918 and 1923 is needed to make Keynesian economics to be adopted during the 1920s, when the condition was much better and earlier than in the 1930s.


Why are you so obsessed with Keynes ? Maybe you haven´t notice but his ideas fall out of favor since the 1970s.
 

Thomas1195

Banned
Why are you so obsessed with Keynes ? Maybe you haven´t notice but his ideas fall out of favor since the 1970s.
I know. But you can see how the laissez faire approach caused British unemployment to stay around at least 10% until mid 1930s. What Britain faced at that time was demand deficient recessions, not cost push. Also, he was clearly right about the Gold Standard.
 
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Thomas1195

Banned
I'm guessing that 60% of professional economists maybe more are Keynesians, still, today in 2017. Paul Krugman would be one of them.
It was true that Keynesianism was discredited following the 1970s, but the recent GFC revived it after ineffective expansionary monetary policy.
 
Yes, I have read that 1970s stagflation supposedly refuted the postwar consensus. That it was viewed as some huge mystery as to how the economy could simultaneously have rising inflation and rising unemployment.

And yet, within the last year, I've looked up several recent economics textbooks and the explanation is a piece of cake. When we have a "supply shock" like the 1973 OPEC embargo or the 1979 energy crisis, the supply curve moves inward. This is also called "cost pull inflation."

PS I am by no means a professional economist, just an interested lay person.
 
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