What was the global impact of the Depression? Flashcards
What are the two broad global impacts of the great depression?
The collapse of international trade
Economic Collapse
How did the collapse of international trade affect countries?
The USA put tariffs on European goods and in turn, Europe put tariffs on USA goods
International trade came to a stop.
As the trade profits decreased drastically so did employment. 25 million worldwide people were left unemployed
How did economic collapse affect countries?
Germany became dependent on USA loans: The loans are used to pay back France and Britain which are paying back the US. The whole collapses when the US stops payments.
Businesses close and contribute majorly to unemployment
This leads Germans to be poor and bitter, looking for someone to blame. 5 million Germans were left unemployed.
Why did the great depression lead to a rise in dictators?
Blamed the government for poverty in their country due to the effects of the great depression. So then they voted for people that they thought would fix everything.
25 countries had become dictatorships after 1929.
Why did the great depression lead to aggression?
- Countries could not trade with each other leading to anger from lack of survival supplies e.g japan became aggressive because they were reliant on trade from other countries. Japan is a small country and it could not feed its population. One of the ways they sought out doing this was taking over other countries which had more natural resources than they did.
Due to the lack of resources in individual countries, they invaded other countries to gain land and resources.
Another reason a country would want to start being aggressive is as a distraction. Poverty was a major thing and common in many countries during this time so leaders Italy, in particular, was using war as a way to increase national pride.
Why did the great depression lead to a decline in international cooperation?
New economic policies were put in place to attempt to protect their citizens from the depression’s effects. Some examples of this are the USA raised custom duties on foreign imports. Britain also did this just not on any imports from the British empire. Italy took a different approach by cutting off all foreign imports.
The USA put Tariffs on imports which started a trade war in Europe. The trade war made each country more nationalistic and a lot less trusting of all the other countries. When countries don’t trust each other there is no foundation for international cooperation.
