Effects Of The Great Depression On America Essay

1597 Words Nov 5th, 2015 7 Pages
The Great Depression was the economic slump that began on October 29, 1929, which occurred after the New York Stock Exchange on Wall Street crashed. Since many European countries were dependent on US loans, this recession spread into Europe and lasted nearly a decade. It caused unprecedented levels of poverty, hunger, unemployment and political unrest. In Germany, this meant that the US asked the banks and businesses to repay the money they had borrowed at high rates of interest. It also meant that the Weimar government became unpopular as it was seen as being unable to deal with the depression and not looking at its peoples’ interests, especially as they kept paying reparations to the Allies instead of stopping this to help their people. The most significant effect of the Great Depression was that the people of Germany started looking for a powerful, decisive leader whom they felt could bring them out of the depression and make them a strong country again.

The Great Depression was significant economically in the way that it caused industrialised nations to reduce their imports and scale down production. This is shown in the way that industrial production in 1929 was at 100%, and by 1932 it had dropped by 42%. In the metal industry, between 1929-32, there was a drop of 28.1% in growth rates of industrial output. This was because world trade had slumped as fewer people were buying goods from other countries. In Germany, exports had been increasing as their economic…

Related Documents