150581569
Alan John Wager
POL107A
15 November 2015
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INTRODUCTION
In the years leading up to the First World War, the Liberal Party was thriving, not showing any signs that they were near their downfall. Starting in 1906, the Liberals won three consecutive elections and the leadership of Prime Minister H.H. Asquith and Chancellor of the Exchequer David Lloyd George looked extremely strong. Although they had their differences, the two men formed a powerful political partnership. Under their leadership, the Liberal party was able to pass through multiple pieces of legislation that were tremendously opposed by the Conservatives and the House of Lords, proving their political clout. The most important of these was “The People’s…show more content… Examining the Marconi Scandal of 1912 best shows the respect the two shared. The scandal revolved around insider trading allegations that were brought up against many major Liberal leaders, namely Lloyd George. The men, being in government, became aware that the Marconi Company was soon to be awarded a hefty government contract to complete work on many wireless stations and so bought stock in the Marconi Company before the contract was given and then saw it skyrocket in value after the contract was announced. Word of their questionable ethics was leaked and eventually a House of Commons select committee was formed to examine the case. Thankfully for Lloyd George, the house FINISH PORTION ON MARCONI SCANDAL HERE. NEED A BIT MORE RESEARCH IN ORDER TO FINALIZE. MAINLY, DID ASQUITH HAVE ANY DIRECT RESPONSIBILITY FOR GETTING LLOYD GEORGE OFF, OR IT WAS SIMPLY A PARTISIAN…show more content… The first attempt to pay for the war came in the form of a direct income tax. Prior to the war, income taxes were only paid by only about two percent of the population and rates were a low six percent. As the war waged on however, over two million people were added to the tax pool and the rates were consistently hiked . By 1918, income tax rates in the United Kingdom were at a staggering thirty percent . These hikes were understandably displeasing to the populace and made them lean away from the current government and toward the more economically austere Conservatives. The hikes would have been required from whatever party was in power at the time, the Liberals were unlucky that contingency dictated the war come while they were in charge. Beyond the taxes, the government was forced to make a few other questionable economics decisions in order to keep their war machine afloat. One of these methods was simply printing more money. The rapid inflation caused by taking this route made prices more than double between 1914 and 1918 . More so, in another attempt to fund the war, the government took on a large amount of debt, mainly from foregin allies from the United States. This created a rise in the deficit and set Britain up for a struggle after the war. All of these economic maneuvers were forced onto the government by the financial demands of war. A war that was created
