 The shipbuilding industry expanded by a third and expected renewed prosperity, but instead a serious depression hit the economy by 1922 and it did not fully recover until 1939. The interwar years were marked by economic stagnation in rural and urban areas, and high unemployment. Indeed, the war brought with it deep social, cultural, economic, and political dislocations. Thoughtful Scots pondered their declension, as the main social indicators such as poor health, bad housing, and long-term mass unemployment, pointed to terminal social and economic stagnation at best, or even a downward spiral. Service abroad on behalf of the Empire lost its allure to ambitious young people, who left Scotland permanently. The heavy dependence on obsolescent heavy industry and mining was a central problem, and no one offered workable solutions. The despair reflected what Finlay (1994) describes as a widespread sense of hopelessness that prepared local business and political leaders to accept a new orthodoxy of centralised government economic planning when it arrived during the Second World War.
