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Global Impact of Great Depression in the 1930s

Explore the profound repercussions of the Great Depression between the wars - economic turmoil, political shifts, and societal changes across continents. Discover how nations grappled with the aftermath and sought new paths to recovery and stability.

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Global Impact of Great Depression in the 1930s

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  1. Global Effects of the Great Depression The 1930’s: Between the Wars

  2. United States • Great Depression originated here with the stock market crash on October 24, 1929 (Black Thursday. Or Tuesday. Or Monday.) • Severe drought in 1930 caused further economic damage to the agricultural industry • Central banking gave loans they shouldn’t have, people panicked and withdrew savings, banks closed • Devaluation of the American Dollar led to the end of the Gold Standard, changing to a fiat currency (money that exists because an authority or custom declares it to be money) • Unemployment rate reached 25%

  3. Worldwide stats • International trade plunged 2/3 • Cities dependent on industry were hit hard • Crop prices dropped 60% • Most countries underwent government run relief reforms • Most countries moved politically to the right or left in search of a better structure (FDR, Hitler, Stalin, etc.)

  4. Europe • Economic decline had been coming for awhile, but the NYSE crash was the final catalyst as many wealthy Europeans had invested in it • Credit structure collapsed in 1931, withdrawing loans from U.S., further damaging them • Several countries turned to leaders that promised better times and a change, even if their ideas were radical • Suffered low wages, unemployment, growing dependence on military production (Germany) • Forced colonies to buy only European products • ½ German population lived in poverty

  5. Asia • Depended on rubber and tin trade with the West (automobile industry) • Companies in Asia had much less profit because of lack of sales • Japan lost money on silk production as synthetic fabrics were invented • Japanese exports dropped 50% • Bad harvests and unemployment • India created import duties and stayed level • Results: suspicion of West increased, Japan tried to seek more Asian markets

  6. Latin America • Had a strong economic tie to the U.S. • According to a League of Nations report at the time, Chile, Peru, and Bolivia were the hardest hit countries in the world • Fascist governments rose in popularity as a result, particularly in Brazil • Industrialization began finally in Brazil only • Many colonial areas depended on the sale of their agricultural exports to afford industrial imports, but couldn’t any longer • Results: greater state planning in economy, new political ideas imitating dictatorships in Europe

  7. Not just an economic depression • The Depression directly contradicted the attitude of the 1900s that prosperity was forward moving progress (CCOT) • It challenged the idea that democracies could control their countries and always be successful • Interrupted industrialization, except…

  8. Not effected… USSR • The Soviet Union was busy industrializing, collectivizing, communizing… • Genocide under Stalin “cleansed” the lazy, the unwilling, the doubtful, and those related to them • Also Southern Africa prospered as gold became more important (before dropping the gold standard)

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