The minority Labour government, in charge since 1929, was devoid of alternative economic ideas and went along with austerity policies sufficient to worsen the economy but insufficient to right the deficit. When the Labour government fell over how deep to cut, it was replaced by the National (coalition) Government. It enacted sufficient spending cuts and tax increases to convince J. P. Morgan and Company to lend Britain $200 million. But the loan was too little and too late to make a difference. With official reserves almost depleted (no gold cover) and unemployment at record levels after a decade of austerity policies, this final round of austerity forced Britain off the gold standard in September 1931.

Mark Blyth, Austerity, loc. 517