MacDonald, along with Keir Hardie and Arthur Henderson, was one of the three principal founders of the Labour Party in 1900. He was chairman of the Labour MPs before 1914 and, after an eclipse in his career caused by his opposition to the First World War, he was Leader of the Labour Party from 1922. The second Labour Government (1929–1931) was dominated by the Great Depression. He formed the National Government to carry out spending cuts to defend the gold standard, but it had to be abandoned after the Invergordon Mutiny, and he called a general election in 1931 seeking a "doctor's mandate" to fix the economy. The National coalition won an overwhelming landslide and the Labour Party was reduced to a rump of around 50 seats in the House of Commons. His health deteriorated and he stood down as Prime Minister in 1935, remaining as Lord President of the Council until retiring in 1937. He died later that year.