The period between 1918 and 1939 is infamous for being a time of economic struggle for Scotland. Victory in World War I was followed by a great post-war economic depression. With the rise of economic nationalism, Britain abandoned previous free trade. A further depression in 1929 dealt a further blow to the Scottish economy. Yet a number of key factors have contributed to the downfall of the Scottish economy. Steel production and shipbuilding certainly felt the effects after the war ended. The colossal drop in demand for additional production led to a gradual decline in contracts and profits, which proved crippling for some companies. In 1920, 2 million tons of steel were produced, followed by 672,000 tons launched on Clyde. However, by 1931 only 670,000 tons of steel had been produced and a tonnage of 67,000 launched. This saw shipbuilders such as Brown's see profits as low as 0.4% on contracts.[1] This went hand in hand with unemployment. Many chose emigration as an option to escape unemployment, and between 1921 and 1931 Scotland lost large numbers of people who left in search of opportunities elsewhere. As businesses and factories began to struggle in Scotland, employment issues began to arise, culminating in a series of protest marches such as in Glasgow and Edinburgh. The difficulties of Scottish agriculture have also had knock-on effects on the economy. Livestock farming dominated the rural workforce, accompanied by a decline of around 20,000 agricultural workers. Say no to plagiarism. Get a tailor-made essay on 'Why violent video games should not be banned'? Get the original essay Scotland relied heavily on heavy industries such as shipbuilding during the war. The naval arms race has led to a sharp increase in demand that will create thousands of jobs and stimulate new means of production. However, following the end of the war in 1918, these heavy industries experienced a decline in demand which proved crucial to the Scottish economy. The real problem with steel and iron production arose from Scotland's position before the war. It was clear, looking at Scotland's steel production in the run-up to war, that the country's means of production would be insufficient. This meant that there was enormous pressure to tax heavy industries more, which would create a massive increase in proportions compared to other countries. This meant that Scotland's enormous success during the war would contribute to its heavy fall during the post-war global depression. When it came to iron, the emphasis on production remained in the pre-war mentality, seeing enormous neglect in the production of basic pig iron. Scotland was focusing on a production structure that had served it well before and which would last in the short term. However, the trend towards focusing on traditional sectors such as hematite, foundry and iron forging now meant that the emphasis was on production in areas with the lowest demand in the world. Although there was a decline in hematite production, the proportion of this type of iron was still much higher compared to the rest of the UK. Hematite accounted for around 44% of Scotland's entire iron production, while smithing and foundry smelting accounted for a further 35%.[2] National iron ore reserves were also completelyinsufficient, which further limited the possibilities for continuous production of cast iron. The production of these heavy components like steel naturally revolved around shipbuilding. Shipbuilding, however, was an industry that had to base its own production on global demand. The end of the war saw the start of huge inconsistencies in the demand for ships to be built, with sudden increases between short periods followed by critical recessions. Demand has also fallen within Britain itself. During the interwar period, the proportion of the country's trade that would be carried by commercial shipping declined. There was also the question of progressive techniques specific to shipbuilding. By 1934 the overall capacity of ships built in Scotland had increased by 50% over that in 1914.[3] These kinds of improvements in shipbuilding have essentially caused the industry to shoot itself in the foot. As ships became more powerful and capable of carrying larger cargo, their need for numbers decreased markedly. There was also a sense of international sabotage as Scottish shipbuilding declined. Britain as a whole had built a reputation as a leader in ship production during the war. Germany, followed by Japan and Italy, launched an apparently deliberate policy aimed at damaging the British shipbuilding industry, by attempting to cut Britain off from already established trade. During the 1930s, credits held in Germany by foreign shipping interests could only be recovered if ships were ordered exclusively from German shipyards. As a result, millions of pounds worth of ship orders that could have been made through British contracts were lost to Germany. There was a clear sense of underlying strained relations as Germany attempted to regain balance after defeat. Shipbuilding was so important to the Scottish economy because of its sense of locality. Historians such as Neil Buxton have described its products as "incorporating and providing a commercial outlet for the production of several other crafts".[4] Every element needed to assemble a ship came from its own industrial sector. Transportation costs meant that much of this produce came from local sources. Thus, when the main source of demand was criticized, each of its counterparts was also criticized. This is where Scotland’s enormous reliance on heavy industry becomes evident. There was so much emphasis on wartime production that there would be obvious consequences if demand began to decline. In order to fully understand the problems that the Scottish economy faced between 1918 and 1939, it is important to analyze the causes and consequences of unemployment. . Scotland's first commissioner, Sir Arthur Rose, wrote in 1934: "I have regarded industrial development as the only real remedy for unemployment."[5] Scotland's reliance on heavy industry meant that there were many jobs around these factories. With the earlier demand and much of the population fighting on the Western Front, there were more than enough jobs to go around. However, upon returning from the war, many men returned home and found that they would not return to any working paradise. Heavy industry factories have lost jobs due to their lack of financial success, but also because of the technological advances thatthe war had brought about. The introduction of automatic machines and production assembly lines now meant less manual labor. Another example of wartime success leading to post-war depression. This caused strong pressure from the government to close these employment gaps, which would prove costly. Programs have been put in place to improve public service, including improving roads and eliminating slums. There was also the concept of land reclamation to create jobs, but this proved to be a huge failure. In 1929, there was only one such project ready for implementation. It would cost £7,000 and employ 30 men for a period of 9 months. Other larger projects were proposed to 300 to 400 senior men, costing £151,000, but were never implemented.[6] The objective of improving employment has been slow and has not met demand. Demonstrations were held in protest in cities including Edinburgh and Glasgow, as people grew tired of the desperate lack of jobs. Of course, falling employment has led to a long-term setback for the Scottish economy. Tough times have prevented the country from boosting its economy from within. Disadvantaged regions that depended on industry simply had no money to spend. This led to a huge increase in Scottish emigration. Many chose to look elsewhere for employment opportunities that could no longer be provided at home. Little or no action could be taken to resolve these problems. The whole world was feeling the costly effects of full-scale war, and Scotland was no different. Only with the eventual recovery of industries in the run-up to World War II would employment truly have a chance to rebound. Unemployment problems have put the Scottish economy on a slippery slope. The absence of a national income is in itself a blow, but the increase in the number of people affected has only made the situation worse. This industrial fall was accompanied by setbacks in Scottish agriculture. There was no escape from economic failure, even in rural areas. Agricultural effects were present, but not as dramatic as those of industry. After 1921, Scottish farmers faced the same general price depression as everyone else. Farmers reacted in the same way as before the war boom. Shift from arable crops to more profitable extended rotations and permanent pastures. However, farmers' returns were still being made. Prices began to fluctuate violently for commodities such as potatoes and oats, rising and falling as they continued to trend downward. Inconsistencies in harvests meant that there was an increase in sheep farming, with livestock appearing more profitable. The post-war depression saw a revival of agrarian settlement projects as the government attempted to support corn production, for example. The government did not intend to provide long-term support for food price decontrol, but farmers were among the main supporting factors. The war had resulted in some progress with agricultural workers' unions that aimed to resolve wage issues. Although there was no dramatic decline in the wages of these workers at the end of the war, the decline in wages accelerated during the 1930s. There was a fall from 26 shillings to 23 shillings of the weekly agricultural wage rate between 1933 and 1937.[7] Employment was also a growing problem. Like heavy industry, progress.