Causes and Effects of the Great Depression

What was the Great Depression?

  • Wall Street Crash

    • US market was booming in 1920s

    • Britain + France were repaying wartime loans

    • by October 1929, stockbrokers speculated market would decline

      • Lots of American had bought shares in 1920

    • share prices began to fall as shareholders rushed to sell their stocks

    • between 24 and 30 October 1929, USA’s economy collapsed

  • Led to Depression

    • Dawes and Young Plans connected the US economy to the Europeans

    • US recalled their loans

Country

Effects

Britain

  • economy relied on exports

  • 2.75 million unemployed

Germany

  • 6 million unemployed

  • poor government reaction to the economic + social effects

France

  • 5% of workers unemployed

  • France did not suffer as much as other countries

USA

  • 30% of adults jobless

  • nearly 1/3 of American banks closed

Japan

  • drop in silk export- biggest export

  • relied on foreign trade to buy food/raw materials