Great Depression - Ramsay MacDonald's Labor government raising taxes
Time: Aug, 1931
Place: London, England, United Kingdom
Details: Deepening deficits and demands for a balanced budget lead to Ramsay MacDonald's Labor government raising taxes by £24 million and cutting spending by £96 million, most controversial was the 20% cut to unemployment benefits (a sum of £64 million). The U.K.'s public debt at the time was 180% of GDP, mostly left over from the expenses of World War I. Public outrage would lead to the Labor Party being virtually destroyed in the October 1931 election.
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