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The Global Impact of the Great Depression: An Overview of Economic Struggles

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amadis
19 diapositives · 354 Views · Aug 07, 2014

The Great Depression, initiated by the stock market crash on Black Tuesday, October 29, 1929, caused widespread economic turmoil across the globe. Businesses, investors, and everyday people suffered immensely, leading to high unemployment and civil unrest. In the U.S., the New Deal aimed to provide relief and jobs, while the Smoot-Hawley Tariff Act imposed heavy taxes on imports to stimulate local buying. Countries like Great Britain, France, and Germany faced their own crises, from hyperinflation to high unemployment rates. This era severely impacted economies worldwide, leading to extensive social and political changes.

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  1. Worldwide Depression

  2. American Depression • RECAP • October 29, 1929  stock market crashes on Black Tuesday • businesses, investors, people (who didn’t invest), & banks all suffered

  3. American Depression • New Deal • created jobs • spent more money on welfare & other relief • regulated banking & stock market • Smoot-Hawley Tariff Act (1930) • heavy taxes on goods imported into US • encouraged buying American goods

  4. “Black Sunday” documentary clip

  5. Great Britain • late 1920s  still paying back debts to US • had high interest rates, causing spending to decrease & unemployment • industrial areas were more affected • unemployment = 2.5M by end of 1930

  6. Great Britain • 1926  workers upset • general strike: strike involving all or a large number of a nation’s workers • Parliament passed Trade Disputes Act (1927) • made general strikes illegal

  7. France • WWI destroyed farmland, forests, villages, & cities and casualties were numerous • government = bankrupt after war • factories, railways, & canals couldn’t be rebuilt

  8. France • unemployment = high • led to civil unrest • initial impact of Great Depression got worse

  9. “German Hyperinflation”video

  10. Germany • paying back reparations for WWI • as Treaty of Versailles ordered • faced severe inflation • money was practically worthless

  11. INFLATION!! • If you print more money than the amount of gold you have, the money becomes less valuable • Hyperinflation • government prints more money  businesses raise prices  government prints more money  businesses raise prices  etc. • eventually money becomes worthless

  12. Canada • hit hard in the late 1920s • about 30% of workforce unemployed by later 1930s • unemployment rate was around 12% until WWII

  13. Australia • wages decreased • by 1931, unemployment was about 32%

  14. South America • US had been heavily invested in South American economies • Chile, Bolivia, & Peru were especially hurt by depression

  15. Netherlands • not only was the economy suffering, like in the US, but there were also internal factors making it worse