▁but ▁at ▁a ▁level ▁that ▁made ▁British ▁exports ▁more ▁expensive ▁on ▁world ▁mark ets . ▁The ▁price ▁of ▁gold ▁was ▁over - est im ated ▁by ▁ 1 0 – 1 4 % ▁leading ▁to ▁coal ▁and ▁steel ▁as ▁an ▁export ▁becoming ▁less ▁compet itive . ▁The ▁economic ▁recovery ▁immediately ▁slow ed . ▁To ▁offset ▁the ▁effects ▁of ▁the ▁high ▁exchange ▁rate , ▁the ▁export ▁indust ries ▁tried ▁to ▁cut ▁costs ▁by ▁lower ing ▁workers ' ▁w ages . ▁ ▁The ▁industrial ▁areas ▁were ▁in ▁re cess ion ▁during ▁the ▁rest ▁of ▁the ▁ 1 9 2 0 s . ▁These ▁indust ries ▁received ▁little ▁invest ment ▁or ▁modern ization . ▁Through out ▁the ▁ 1 9 2 0 s , ▁un emp loyment ▁stayed ▁at ▁a ▁steady ▁one ▁million . ▁ ▁Econom ic ▁crisis ▁and ▁the ▁Labour ▁minor ity ▁government ▁ ▁In ▁May ▁ 1 9 2 9 , ▁a ▁minor ity ▁Labour ▁government ▁head ed ▁by ▁R ams ay ▁Mac Donald ▁came ▁to ▁office ▁with ▁Liberal ▁support . ▁This ▁was ▁only ▁the ▁second ▁time ▁a ▁Labour ▁government ▁had ▁been ▁in ▁office ▁( they ▁had ▁briefly ▁been ▁in ▁office ▁in ▁ 1 9 2 4 ). ▁F ew ▁of ▁the ▁government ' s ▁members ▁had ▁any ▁deep ▁knowledge ▁of ▁econom ics ▁or ▁experience ▁of ▁running ▁the ▁economy . ▁Mac Donald ' s ▁Labour ▁Party ▁was ▁not ▁radical ▁in ▁economic ▁thinking , ▁and ▁was ▁wed ded ▁to ▁the ▁orth odox y ▁of ▁classical ▁econom ics ▁with ▁its ▁emphas is ▁on ▁maintain ing ▁a