Global Effects of the Great Depression.pptVIP

Economic decline had been coming for awhile, but the NYSE crash was the final catalyst as many wealthy Europeans had invested in it Credit structure collapsed in 1931, withdrawing loans from U.S., further damaging them Several countries turned to leaders that promised better times and a change, even if their ideas were radical Suffered low wages, unemployment, growing dependence on military production (Germany) Forced colonies to buy only European products ? German population lived in poverty Depended on rubber and tin trade with the West (automobile industry) Companies in Asia had much less profit because of lack of sales Japan lost money on silk production as synthetic fabrics were invented Japanese exports dropped 50% Bad harvests and unemployment India created import duties and stayed level Results: suspicion of West increased, Japan tried to seek more Asian markets Had a strong economic tie to the U.S. According to a League of Nations report at the time, Chile, Peru, and Bolivia were the hardest hit countries in the world Fascist governments rose in popularity as a result, particularly in Brazil Industrialization began finally in Brazil only Many colonial areas depended on the sale of their agricultural exports to afford industrial imports, but couldn’t any longer Results: greater state planning in economy, new political ideas imitating dictatorships in Europe The Depression directly contradicted the attitude of the 1900s that prosperity was forward moving progress (CCOT) It challenged the idea that democracies could control their countries and always be successful Interrupted industrialization, except… The Soviet Union was busy industrializing, collectivizing, communizing… Genocide under Stalin “cleansed” the lazy, the unwilling, the doubtful, and those related to them Also Southern Africa prospered as gold became more important (before dropping the gold standard) People have less to spend Loans to Europe end Increase in unemployment Profits for industr