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TheEndofOptimismTheGreatDepressioninEurope
The End of Optimism:The Great Depression in Europe To what extent did economic crisis cause people in Europe to question the effectiveness and sustainability of democratic institutions, and how did these concerns, doubts, and fears translate into political action? The Coming of the Depression: Understanding the Context Disruption in world trade Wall Street Crash, October 1929 Subsequent collapse of American financial system Depression was a global breakdown of economic systems. Common patterns of economic crisis: Decreased trade Cutbacks in production and consumption Increased unemployment Widespread deprivation/frustration Radical political agitation Economic patterns and policy responses: Germany Economy was weakened by: Post-WWI settlement (Treaty of Versailles) Inflation of the 1920s Extensive borrowing by central bank Political instability of Weimar government German government responds by: Cutting public services Use of emergency powers to maintain order Economic patterns and policy responses: Britain Economy was weakened by: Persistent economic problems in 1920s Shipping and banking weakened by collapse in world trade British government responds by: Protecting industries (decreased trade) Resisted calls for spending on services Economic patterns and policy responses: France Economic patterns early 1930’s Modernization provided some partial immunity in the early years of depression. Economic patterns late 1930’s: Production and consumption begin to fall. High unemployment Economic suffering Demands for political action Conditions, Actions and Motivations Economic Conditions Unemployment/frustration/poverty Motivations and Actions Demonstrations/strikes/protests Political activism/elections/ Transforming political structures Rise of new national governments Unemployment Most visible sign of depression Lines for food relief Statistical evidence of rising unemployment Radical activists called for immediate action to alleviate suffering of the people.
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