Impact of the Great Depression on Other Countries

  • The Great Depression of 1929 badly affected the US economy.
  • It also affected Germany, France, Japan and Britain.
  • In Germany, a republican government named Weimar Republic emerged after their defeat in WW I.
  • The Weimar Republic was unpopular due to its acceptation of Treaty of Versailles.
  • America provided loan to Germany under Dawes Plan to counter economic problems.
  • Dawes Plan was supported by Young Plan of 1929.
  • Adolf Hitler cashed on the unpopularity of Weimar Republic to gain power.
  • Nazi Party won the election of 1933.
  • During 1930 unemployment remained low in France.
  • In the autumn of 1931 the slump and unemployment finally spread to France.
  • French government now sought by financial orthodoxy to meet the crisis, simultaneously cutting pensions, salaries and public expenditure.
  • The politicians were smeared with the taint of corruption by what became known as the Stavisky scandal.
  • The climax was reached during the night of 6 February 1934 when street battle raged in Paris, the police and Grade Moblie narrowly gaining the upper hand.
  • French finance minister, Paul Reynaud, tried to restore the economy by increasing tax and a longer working week.
  • It was misfortune that all this occurred when across France’s eastern frontier a determined and ruthless dictator was taking full advantage of the French political and social crisis.
  • Japanese silk industry collapsed due to fall of USA’s import of raw silk.
  • Japan invaded and occupied Manchuria as she had vast investment made there.
  • Chinese nationalism posed a threat to Japan's economic activities.
  • Japan also adopted German policies and did not allow a democratic process.

 

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