The Great Depression
>== Essential Question == How did the Great Depression lead up to the second World War?
Before the Great Depression
After World War 1, the German Empire, Ottoman Empire, and Austro-Hungarian Empire near collapsing. On November 11, 1918, countries that were still fighting signed a peace armistice, which is an agreement to stop fighting. This peace didn't last very long, in 1929, that was going to change.
What was the Great Depression?
The Great Depresssion was a time of hardship for everyone across the world. Not only did it impact Americans, but it also had effects in other parts of the world. In 1929, the New York Stock Exchange crashed; the Great Depression began. October 24, 1929, also known as Black Thursday, was the worst day in the stock market. On this day, 12,894,650 stocksexchanged hands for prices that were very low. Investors lost about $30 million in a matter of weeks.
Major Causes of the Great Depression:
1. Market Crash
2. The economy after World War 1: After World War 1, most of the money had been put towards weaponry and funding for the war. Not much money was left for the economy. As many as 9,000 banks also failed since deposits were being uninsured.
3. Overproduction: Manufacturers found it tough to find markets to sell their products. There was more supply than demand for goods so prices were low; not much profit was made on the goods.
4. Inflation: In order to buy military supplies, the government printed more money, which made the worth of the dollar go way down.
5. Tariffs: No one wanted to have free trade. The US placed duties on imported goods.
6. Drought of 1930: It was not a direct effect of the depression, but many farmers couldn't produce crops. They couldn't pay taxes or debts, so they had to sell the farms.
The New Deal
Many blamed the depression on President Herbert Hoover. In 1932, Franklin D. Roosevelt was elected as President. FDR pledged "myself to a new deal for the American people". The New Deal introduced socialism into the United States. Socialism is a part of government that controls business and industry. The main purpose of the New Deal was aimed at short-term recovery programs for the country. The New deal also brought in suffering. Sharecroppers were thrown out of business. It caused "class consciousness", meaning that people were more aware of the lower,middle, and higher classes. Roosevelt blamed the depression on the higher class.
As the depression spread across the world, many people suffered hardships. Leaders such as Mussolini and Hitler soon began promising many things to raise hopes of their followers. Thus began the second World War.
The Great Depression was a time of hardship for everyone around the world. Many people lost jobs. Trade between countries ceased. Economies across the world were suffering. The Great Depression made way fro World War 2 and the rise of leaders like Hitler and Mussolini.
After the Great Depression, new leaders rose. Since many people lost jobs, people wanted any glimmer of hope. What people needed was a new leader, a new leader to give them promises and a new start. Three people in particular were Hilter, Mussolini, and Stalin. In Germany, Hitler rose as the leader and promised hope to the Germans. Mussolini rose in Italy and gave the Italians hope. Stalin was the one to rise in the Soviet Union. All that led to was another World War, the Second World War.
The Great Depression is one of the most remembered events in history. Everything that happened made people rely on the government more, especially the enactment of the New Deal. Slowly the economy rose from the slump and was strong again.
Not only did people suffer during the 1920's and 1930's from the Great Depression, but our economy is still suffering today.
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