Question

In France, how did the socialists attempt to fight the effects of the Great Depression?

Answer 1

- In France, how did the socialists attempt to fight the effects of the Great Depression?

They implemented the Matignon Accords; which allowed them to adopt and enact several progressive laws such as:

Creation of the right to strike for workers.

Legalization of collective bargaining between workers and employers.

Two weeks of annual leave (vacation holidays) paid by employers.

Limitation of the working week to 40 hours and prohibition of overtime work.

A salary raise of 15% for workers (7% for workers with higher salaries).

Recognition of union representatives and protection of strikers.

Nationalization of the weapons industries.

Creation of the Grain board that protected farmers by helping the marketing of wheat at fair prices.

Major infrastructure works programs.

Increasing the mandatory schooling period to 14 years of age.

Answer 2

The French economy, well behaved in the postwar period, was faced with the crisis, when in 1931, Great Britain and many other countries decided to abandon the gold standard. Until then, the devaluation of the franc and protectionism made France weakly hit by the crisis. The problem arose in the dilemma of maintaining the gold standard, favored by its large amount of reserves of this material, or devalue. The decision to maintain the gold standard, due to the fear of inflation, imposed a deflationary line of action to adapt French prices to world levels within a framework of general devaluation. Thus, deflation was promoted by reducing expenses, lowering wages and maintaining high interest rates. This caused social tension, falling investments and no positive results.

However, in 1936, a new government of a socialist nature produced a turn of significance. The gold standard was abandoned with the consequent devaluation of the franc, a moderate public works plan was carried out, agricultural prices were regulated and salaries were increased. The immediate transfer of wage increases to prices re-ignited inflation and social tension reappeared.