Returning to the gold standard is a favorite conspiracy theory among low-achieving Orthodox Jews.
Paul Johnson writes in his book Modern Times: The evidence of industrial decay was omnipresent too. After a brief post-war recovery, the fundamental weakness of Britain’s traditional export industries – coal, cotton and textiles, shipbuilding, engineering – all of which had old equipment, old animosities and old work-practices, combining to produce low productivity, was reflected in chronically high unemployment. This was attributed in great part to the decision of Winston Churchill as Chancellor of the Exchequer to return Britain to the gold standard in 1925. Keynes argued fiercely against it as a form of ‘contemporary mercantilism’. We were ‘shackling ourselves to gold’. Churchill replied we were ‘shackling ourselves to reality’, which was true, the reality of Britain’s antiquated industrial economy. 87 The effects of the move balanced out: higher export prices, cheaper imported food and raw materials. As Churchill said, it was primarily a political move, designed to restore Britain’s financial prestige to its pre-war level. It was necessarily deflationary and so had the unforeseen effect of making it easier for the government to defeat the General Strike, the ultimate weapon of the Sorelians, talked about since 1902, which finally took place in May 1926. There had been dress-rehearsals in 1920 and 1922, from which the Tory Party had profited more than the union leaders. When it became inevitable, Stanley Baldwin
craftily manoeuvred the leaders of the transport, railway and mining
unions into fighting the battle at the end instead of the beginning of
winter. It collapsed ignominiously after a week
