HIST102 - THE GREAT DEPRESSION

When did the Great Depression begin and when did it reach a trough?

It began in 1929 and reached a trough in the early 1930s.

Why is the Great Depression important historically?

It was key context for the rise of fascism and marked the emergence of a new approach to economics.

How did the Great Depression affect the status of liberalism?

It tarnished liberalism's ideological status and opened the way to new ideologies.

What revealed the global connectedness of economies in the 1920s?

The Great Depression showed how truly globally interconnected the world's economy had become.

What were the roots of the Great Depression according to economic historians?

The reparations imposed on Germany after WWI are seen as a ticking time bomb.

Why was the USA considered a second time bomb?

Because of its central role in the global economy, lending, and industrial dominance.

What characterized the Roaring Twenties in the USA?

Cultural vibrance, economic optimism, consumerism boom, and technological innovation.

How did consumer credit in the 1920s contribute to the economic boom?

New forms of credit enabled mass consumption, driving industrial growth and cost reduction.

What triggered the end of the 1920s economic boom?

Oversupply and the stock market crash on Wall Street on October 29, 1929.

What is speculation in stock markets?

Buying stocks hoping prices will rise, often leading to overvaluation and market instability.

What happened on the day of the 1929 stock market crash?

Around $30 billion in value was lost—80% of the market's total value.

How did the Depression affect global production?

Production in the US fell 33% between 1929-1931.

Give an example of an American company affected by the Depression.

Westinghouse lost 66% of sales and 76% of profits between 1929-1933.

How did the Depression affect daily consumption?

People stopped buying both luxury and everyday goods like tea and wheat.

Give examples of international economic impacts of the Depression.

Dust bowls in US, Japan's silk crash, Brazil's coffee collapse, Ghana's cocoa crisis.

How did the Depression affect global migration?

190,000 Japanese migrated to Brazil for work on coffee plantations.

What were unemployment rates during the Depression?

Germany 44%, US 27%, UK and Belgium 22-23%.

How did the Depression affect welfare systems?

Welfare provisions were minimal; people depended on charity and aid.

What were hunger marches and soup kitchens?

Indicators of widespread poverty; set up to feed people in rich countries like the UK and US.

What political consequences did the Great Depression have?

Governments collapsed, coups occurred, and political extremism increased.

How did liberalism fare during the Great Depression?

It appeared incapable of resolving the crisis, leading to disillusionment.

What was Keynesian economics?

J.M. Keynes proposed that governments must plan and regulate economies, not rely on the free market.

What was the New Deal?

Roosevelt's 1933–39 program of economic intervention including regulation, public works, and social security.

How did the Great Depression contribute to the rise of fascism in Germany?

Exacerbated economic problems from WWI reparations and hyperinflation, paving the way for Hitler.

What happened to the German currency during hyperinflation?

It sank to one millionth of its former value.

What is the overall significance of the Great Depression?

It was an unprecedented global crisis that redefined economic ideologies and fueled extremism.