FF and the Economy - An Assessment

In the previous set of notes, you will have looked at key events from Fianna Fail's tenure in power during the 1930's. This selection of notes looks to assess their contributions to the Irish economy and answer some of the most commonly asked questions to aid with your study.

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Assessment of Fianna Fáil's Economic Policy

• Fianna Fáil made significant changes to Ireland's economic policies. While the previous government, Cumann na nGaedheal, favoured free trade, Fianna Fáil shifted towards protectionism (protecting Irish industries by imposing tariffs on imports).
• This change aimed to make Ireland more self-sufficient, especially during the global economic depression when many countries were doing the same.
• Ireland's industry faced many challenges. It relied heavily on imported raw materials and fuel, and the home market was small and not very wealthy.
• Despite the international recession, Seán Lemass protected existing jobs and created new ones. Between 1931 and 1938, employment in the industrial sector increased significantly, and the total value of industrial output rose from £55 million to £90 million.
• However, these new industries remained small and mostly focused on the local market, where they didn't face much competition.
• Some industries didn't last, especially after the 1940s, and many people emigrated in the early 1950s. Still, Fianna Fáil's industrial policies were more successful than Cumann na nGaedheal's ones.

• Fianna Fáil had more success with their industrial policies than with agriculture. Early efforts in agriculture were aimed at increasing self-sufficiency, but these attempts didn't always work out.
• Between 1932 and 1936, the amount of land used for farming grew, but this was because farmers switched from growing grains to crops like wheat, sugar beet, and tobacco.
• Some farmers also moved from raising cattle to tillage (growing crops), though the expected jobs for farm labourers didn't materialise as hoped.
• The economic war had a particularly bad impact on the cattle market. In 1935, live cattle production dropped by 40% compared to 1929.
• Fianna Fáil eventually had to accept that Ireland needed to export to survive. Agreements like the Coal-Cattle Pact helped ease the situation.
• By 1939, after ten years of economic difficulties, Ireland faced new challenges with the onset of World War II, which added further strain to the economy.

Questions and Answers

1. Which three ministers were mainly responsible for Fianna Fáil's economic policies?

• Seán MacEntee (Finance Minister)
• Seán Lemass (Minister for Industry and Commerce)
• James Ryan (Minister for Agriculture)

2. What caused the 'economic war'?

• Fianna Fáil's decision to stop paying land annuities to Britain.
• Britain's retaliatory taxes on Irish exports like cattle and butter.
• Ireland's response with tariffs on British imports.

3. What were the consequences of the economic war?

• Decline in Irish exports, especially cattle, leading to economic hardship.
• Severe impact on Irish agriculture and farming incomes.
• Need for new trade agreements to stabilise the economy.

4. What steps did Lemass take to improve employment in industry?

• Introduced protectionist policies to safeguard Irish jobs.
• Encouraged the development of new industries with grants and tariffs.
• Created new jobs by setting up state-sponsored bodies and industries.

5. What changes to social welfare did the Fianna Fáil government introduce?

• Implemented the Unemployment Assistance Act of 1933.
• Provided medical cards, pensions, and allowances to vulnerable groups.
• Expanded housing programs to relieve overcrowded living conditions.

6. What policies did Fianna Fáil implement to attempt to solve the housing crisis? Were they successful?

• Launched a major public housing program, constructing over 12,000 houses.
• Focused on building affordable, state-subsidised housing.
• Successfully reduced overcrowding and improved living conditions for many families.

7. How successful was Fianna Fáil in achieving self-sufficiency?

• Partial success in reducing reliance on British imports.
• Increased production in agriculture and industry, but still dependent on exports.
• Mixed results, as some industries and agricultural efforts struggled.

8. How did Fianna Fáil's economic and social policies impact the lives of ordinary citizens?

• Improved job opportunities in new industries.
• Enhanced social welfare provisions, especially for the unemployed and vulnerable.
• Provided better housing for many families, improving living standards.