The impact of the Wall Street Crash Flashcards
When did the Wall Street Crash happen?
October 1929
Why did the Depression make the League’s work harder?
1) Nations were less inclined to impose economic sanctions
2) Extremists, like the Nazis, were helped to power - they opposed the League
3) Militarism, such as in Japan, was encouraged - this made world peace harder to protect
4) It put pressure on countries to find raw materials - sometimes the only option was through war
Why did countries increase tariffs (taxes on imports)?
They were trying to protect their own industries by stopping imports
Why did raising tariffs not help the world economy?
If one country raised tariffs, so would others. This meant that international trade declined and more businesses went bust.
How did many countries - such as Germany, Japan and Italy - try and deal with their economic problems?
By rearming. This would give jobs to the unemployed and help industry.
Why did rearming increase tension?
As neighbours rearmed, other states became nervous, so they in turn started building up their armed forces
How many unemployed were there in Germany in 1932?
6 million - about one third of the work force
How did the Depression affect the USA?
It devastated its economy - and made it unwilling to help out with economic sanctions
How did the Depression affect Japan?
It nearly bankrupt Japan. Its main export - silk - was no longer needed. Its leaders, all generals, decided to build an empire and therefore acquire the necessary raw materials Japan needed.
How did the Depression affect Britain?
Significantly. Britain’s economy was badly hit and sorting it out was Britain’s main focus. It was reluctant to help deal with international disputes as this was seen as a low priority.
How did the Depression affect Germany?
It brought widespread unemployment, poverty and chaos. Germany’s leaders looked weak and powerless, something that helped bring Hitler to power. Hitler wanted to take back the land that had been lost in the Treaty of Versailles.
How did the Depression affect Italy?
It created economic problems. Mussolini tried to build an overseas empire to distract people from the problems in Italy.
