This increases the cost of living and diminishes people's savings, where it leads to poverty gradually.

From 1890 to 1914, Britain may have gone through a similar situation. Although later allied with France for military purposes, Britain may have not had any trade agreement. This implies that Britain was a self sustaining unit but using resources of her colonies. Even at that time Britain had nearly 1/4 of land area which commercially benefitted her directly and indirectly5. New industries were taken over by Germany and USA (electronics). In the mean time, traditional industries such as the 'steel industry' were fallen back and had been newly taken over by Germans and Americans5. This in turn might have generated a population of unoccupied personal searching for opportunities. In 1904 regular work was not sufficient to protect families against poverty and confirms Rowntree's conclusion that low wages were an important cause of poverty...
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