The Great Depression

Question 1

UNRAVELING OF CAPITALISM

Answer 1

stock market crashed on October 29 1929; capitalist nations languished in the Great Depression (how industrialized = how much affected); fortunes were lost almost overnight, 30% unemployment and world trade dropped 62%

Question 2

MAIN CAUSES OF THE GREAT DEPRESSION

Answer 2

1. post-war overproduction
2. speculative stock market in the USA
3. Treaty of Versailles Article 231

Question 3

IMPACTS ON COLONIES

Answer 3

colonies that were only exporting a few goods were hit hard: SE Asia (rubber) exports dropped as automobile sales in Europe declined by 1/2; GB’s Gold Coast cocoa production dropped, Latin American exports were cut by 1/2

> > unemployment and social tensions&raquo_space;import substitution industrialization

Question 4

IMPORT SUBSTITUTION INDUSTRIALIZATION

Answer 4

where a country that was relying on imports for goods starts to produce their own

Question 5

EFFECT ON SOCIALISM

Answer 5

Marx’s ideology was looked to because capitalism was failing, as he had said, and the USSR was unaffected (communist state)

Question 6

USA RESPONSE TO THE GREAT DEPRESSION

Answer 6

began with FDR’s New Deal in 1933; ideas reflected the thinking of British economist John Maynard Keynes: believed that government spending could moderate recessions

1. Public spending programs (dams, highways, bridges, parks) to reduce unemployment
2. Social Security System
3. Minimum Wage
4. Welfare programs
5. Government support of labor unions to support workers’ struggles
6. subsidies to farmers who kept up production even as prices fell
7. New government agencies provided more regulation of the economy

Great Deal didn’t work very well until after WW2; USA recovered from the spending that came with WW2

Question 7

MOST SUCCESSFUL STATES

Answer 7

Communist USSR, Fascist Germany and Italy