Country, Economic System, Response to Great Depression

United States

Capitalist

Implemented the New Deal under FDR: relief for citizens, government spending to stimulate recovery, and financial reforms. Adopted Keynesian Economics—deficit spending and increased government intervention.

Germany

Fascist

The Nazi regime under Hitler pursued state-controlled rearmament, infrastructure projects, and suppressed labor movements. Blamed minorities for economic struggles and shifted towards militarization.

Italy

Fascist

Mussolini’s fascist government imposed corporatism, increasing government control over industries and promoting extreme nationalism. Conquered Abyssinia to boost national prestige.

Soviet Union (USSR)

Communist

Stalin introduced the Five-Year Plans—rapid industrialization, collectivization of agriculture, and political repression. Millions died from famine and forced labor.

Mexico

Corporatist

The PRI government, under Lazaro Cardenas, nationalized the oil industry, improved land reforms, and maintained political dominance through corruption and corporatism.

Spain

Fascist (after 1939)

The Spanish Civil War (1936-1939) saw Francisco Franco’s Nationalists, backed by Hitler and Mussolini, defeat the democratic Popular Front. Franco ruled as a dictator until 1975.

Brazil

Corporatist (Fascist-leaning)

Getulio Vargas enacted industrialization policies mirroring Mussolini’s fascism. Established Estado Novo, limiting political freedoms, censoring the press, and increasing government control over the economy.

France

Capitalist

Struggled with economic stagnation due to Germany not paying reparations. The government faced political instability, but eventually adopted some Keynesian economic policies with increased state intervention.

Great Britain

Capitalist

Struggled to repay debts, leading to economic downturns. Eventually adopted Keynesian policies—deficit spending and increased social programs to stimulate the economy.

Japan

Militarist (Fascist-leaning)

Devalued currency to make exports cheaper and boost industry. Relied on military expansion and aggressive imperialism to secure resources and markets (e.g., invasion of Manchuria in 1931).