The Great Depression in Europe: Causes and Consequences

The Wall Street Crash of 1929

The event commonly seen as the starting point of the Great Depression.

Countries affected by the Great Depression

Poland, Germany, and Austria.

America's role as the 'world's banker'

When America faced economic problems, the effects spread globally due to widespread dependence on U.S. loans.

Gold standard

A fixed exchange mechanism tying currencies to gold which limited countries' ability to respond flexibly to the economic crisis.

Political changes after World War I

The emergence of new nation-states and the imposition of reparations influenced economic policies and created financial instability in Europe.

Unemployment rates in worst-hit countries

In countries like Poland, Germany, and Austria, ⅕ of the population was unemployed.

Impact on domestic politics

The economic crisis led to increased support for extremist political parties as moderate governments failed to address the depression effectively.

Actions taken to protect national interests

Countries adopted tariffs and quotas to protect national interests, leading to fragmented trade blocs and strained international relations.

Britain's approach to recovery

Britain formed a National Government and implemented protective tariffs.

Nazi Germany's economic policies

They implemented extensive public works programs and rearmament and focused on autarky and state control over the economy.

Difficulty of international cooperation

It was difficult due to intense economic competition and the prioritization of national interests over collective action.

Significant factor in severity of the Great Depression

The interconnectedness of global economies, particularly reliance on U.S. loans significantly contributed to the severity of the Great Depression in Europe.

Impact of international organizations

If international organizations like the IMF or EEC had existed, coordinated economic policies and financial support might have mitigated the depression's impact.

Lessons learned from the Great Depression

Governments and economists learned the importance of economic diversification, social safety nets, and international cooperation to manage economic crises.

Key points about the Great Depression

1. The Great Depression had a profound impact on European economies, leading to massive unemployment and trade collapse. 2. Political instability increased as extremist parties gained support due to the failure of moderate governments to address the crisis. 3. Protective economic policies and lack of international cooperation exacerbated the depression and strained international relations.

October 24th, 1929

The morning when the New York stock market began a crash that would last four days.

Black Thursday

The day when the stock market crash began, leading to global economic repercussions.

1929 stock market crash

A significant decline in stock prices that initiated the Great Depression.

Inequality

A major factor contributing to the Great Depression, where the top 1 percent of Americans owned more than half of the country's wealth.

Unemployment

A situation where individuals are without jobs; around 30 million people were unemployed worldwide by 1932.

European colonialism

A system where many parts of the world were under European control, impacting global economies.

Panic response

The reaction of people withdrawing money from banks, worsening the financial crisis.

Organized labor strikes

Collective actions taken by workers to protest against harsh working conditions.

Five Year Plan

A strategy initiated by Joseph Stalin in 1928 to control land and increase industrial output.

Collectives

Group-controlled agricultural units established under Stalin's Five Year Plan.

Purges

Stalin's campaigns that led to the starvation or killing of around 20 million people.

New Deal

Franklin Roosevelt's series of reforms aimed at addressing wealth inequality and providing jobs.

Minimum wage

The lowest legal salary that workers can be paid, established as part of New Deal policies.

Social security

Government program providing financial assistance to the elderly, rooted in the New Deal.

Second World War

A global conflict that was influenced by the rise of authoritarian regimes.

Militant authoritarianism

Extreme state control characterized by aggressive military policies.

Military production

The manufacturing of weapons and military equipment that helped economies recover from the depression.

Decolonization

The process of colonized nations gaining independence, accelerated by the aftermath of WWII.