ANALYZE THE DEVELOPMENT OF THE GLOBAL DEPRESSION
College Board Themes
Interactions Between Humans and the
Environment
State Building, Expansion & Conflict
State Building, Expansion & Conflict
Economic Problems
-most countries seemed on the way to economic recovery
-industrial productivity had been put in place since of the devastation of the war on industrial plants, equipment, and transportation facilities
-economic recovery was entangled in a financial system that involved war debts among the allies
-governments of Austria and Germany relied on USA loans to finance the repairment of France and England
-by the summer of 1928 USA started to withdraw Capitol from Europe, placing a huge strain on the financial system
-industrial productivity had been put in place since of the devastation of the war on industrial plants, equipment, and transportation facilities
-economic recovery was entangled in a financial system that involved war debts among the allies
-governments of Austria and Germany relied on USA loans to finance the repairment of France and England
-by the summer of 1928 USA started to withdraw Capitol from Europe, placing a huge strain on the financial system
Other Problems
-improvements in industrial processes reduced the worldwide demand for select raw materials which caused a vast increase in supplies but a drop in prices.
-resulting loss of natural rubber effected Malaysia, Dutch East Indies, and Ceylon because they all relied on rubber
-the increase use of oil undermined the whole coal industry, emerging of synthetics hurt the cotton industry, and the increase of artificial nitrogen completely ruined the nitrate industry in Chile.
-resulting loss of natural rubber effected Malaysia, Dutch East Indies, and Ceylon because they all relied on rubber
-the increase use of oil undermined the whole coal industry, emerging of synthetics hurt the cotton industry, and the increase of artificial nitrogen completely ruined the nitrate industry in Chile.
Agriculture
-depressed state of agriculture the reason of overproduction falling prices during the great war with Europe's agricultural output decline significantly farmers in the United States, Canada, Argentina, and Australia expanded expanded their own production.
-European farmers resumed their agriculture activity by contributing to one white surpluses.
-Above average global harvest began in 1925.
-In 1929, production increased, and prices collapse throughout the world
-forced farm families to have their income reduced
-European farmers resumed their agriculture activity by contributing to one white surpluses.
-Above average global harvest began in 1925.
-In 1929, production increased, and prices collapse throughout the world
-forced farm families to have their income reduced
Crash of 1929
-after the Great War industrial wages were high
-in October 1929 hints of a worldwide economic slowdown become noticeable.
-Steel production declined
-many people invested their money in stock
-outrage in panic selling
-thousands of people lost their entire savings
-Caused American struggle and stress for the up comings of the further depression
-in October 1929 hints of a worldwide economic slowdown become noticeable.
-Steel production declined
-many people invested their money in stock
-outrage in panic selling
-thousands of people lost their entire savings
-Caused American struggle and stress for the up comings of the further depression
Economic Contraction Spreads
-businesses realized they couldn't sell their inventories so they cut back and added lay offs
-with so many people unemployed, demand plummeted even further
-by 1932 national income dropped by nearly half.
-because of the horrible devastation in the US economy, other countries experienced a ripple effect
-most societies experiences economic difficulties besides the Soviet Union
-Germany and Japan suffered the most
-spread to Latin America, Africa, Asia,
-hit hard on countries that depended on the export of products
-with so many people unemployed, demand plummeted even further
-by 1932 national income dropped by nearly half.
-because of the horrible devastation in the US economy, other countries experienced a ripple effect
-most societies experiences economic difficulties besides the Soviet Union
-Germany and Japan suffered the most
-spread to Latin America, Africa, Asia,
-hit hard on countries that depended on the export of products
Industrial Economies Primary Producing Economies
-USA investors tried to raise money by calling in loans, yet Wall Street refused to extend the loans.
-banking houses in Austria and Germany nearly collapsed because of the reliance of the U.S. loans -Germany resulted in 35% unemployment and a fifty percent decrease in industrial production -because no wars were fought on German land, the national economy had been spared the physical destruction that actually disrupted the economies of other lands like France and Russia. -the situation in Europe got deeper when businesses found US markets had virtually disappeared behind tariff walls -foreign trade plummeted -Affected areas like Japan because of the dependence of the U.S. market |
-Most Latin America countries were vulnerable to the depression because of all their global trade connections
-prices from many foreign countries plummeted -any attempt to raise the prices failed -unemployment in Latin America grew |
Africa (other countries that weren't affected as much)
-entire country was under colonial rule
-Africa was a primary producer to agricultural goods
-European companies that controlled international trade in Africa suffered
-Africa was not affected as much because of the easy access to the crops
Philippines did not suffer as much because they were high on sugar production
-Africa was a primary producer to agricultural goods
-European companies that controlled international trade in Africa suffered
-Africa was not affected as much because of the easy access to the crops
Philippines did not suffer as much because they were high on sugar production
Economic Nationalism
-as international corporation broke down, governments turned to their own resources to begin a practice of economic nationalism
-imposed tariff barriers to make politicans achieve authority
-after U.S. Congress passed the smoot hawley tariff in 1930, governments all over immediately retaliated by raising tariffs on imports of US products
-resulted in sharp drop in international trade
-imposed tariff barriers to make politicans achieve authority
-after U.S. Congress passed the smoot hawley tariff in 1930, governments all over immediately retaliated by raising tariffs on imports of US products
-resulted in sharp drop in international trade