WW2 causes - the great depression

1920s - economic recovery from ww1

• 1920s = recovery for European nations after ww1

• European powers → borrowed money from USA

—> US economy increased in1920s BUT dependence on US - not sustainable

the 1929 stock market crash

• grow in production of goods & prices of shares in US → problems

1. companies made more goods than they could sell - american’s = too poor to buy + no foreign markets

2. speculation - investors → borrowed money to buy shares → share prices increased alot by late 1920s

→ October 1929 → new york stock exchange collapsed → investors sold shares as prices fell → end dec 1929 - $40 billion wiped off value of US share

impact of the crash

• huge fall in demand for goods or services → decreased production → increased unemployment → mass poverty

• depression → hit to other countries → German economy reached pre-ww1 levels = ☹ → bcs unemployment

• 1932 - 6mill unemployed in germany

why is this a cause

• TGD enabled the rise of dictators in Germany as

• the Nazis used hyperinflation and loss of jobs as propaganda to convince civilians they could fix the economic crisis and allowed them to get into government which set of the next chain of events where Hitler became chancellor → Nuremberg laws - antisemitism → holocaust → countries realizing bcs of these policy’s Germany would become dangerous → had to stop him → appeasement → soviet nazi pact → ww2