Great Depression
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Mexico
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Germany
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Main Characteristics
At the end of WWI, Germany became a democratic republic known as Weimar Republic.
Government became unable to deal with the economic crisis, which became vulnerable, since it was based in foreign capital and trade.
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Germany asked the US for loans, becoming dependent.
1931- First Federal Law of Work
Causes.
The Weimar Republic was devastated by the Wall Street crash in 1929. The US had propped up the Weimar Republic with loans in 1924 and 1929.
Worst effects exportation, most sectors were affected because USA could not buy products
Mexican foreign policy suffered changes (repatriotism)
- The crash of the stock market caused by the Black Thursday, Black Monday and Black Tuesday.
Now America needed those loans back to assist her faltering economy.
The GD in the USA was to the new deal what Cardenismo is to Mexico
United Kingdom
- Economic bubble caused by the subconsume and overinversion.
25% Of the worker force got laid off in 1933
- Lack of trust in the market which caused the inversors to stop consuming and investing. Instead they took their money in cash not in actives.
The GD had a profound and long lasting impact on Mexico´s economy and society
25% of the workers got laid off i
Teories of causes of Great Depression
American banks withdrew the loans they had made to Germany. Business closed, unemployment rised and inflation was rampant.
Areas of heavy industry were affected. These industries were: Iron, coal, steel and shipbuilding.
- Defletion of the Debt It was a main cause because the goverment got overindebtedness which caused the investors to speculate about the possibility of the U.S government to pay it’s debt and because of that they stopped investing.
Lazaro Cardenas nationalization
Adolf Hitler was the real beneficiary of the Great Depression. Public discontent made people make the NSDAP grow to record levels. Two years later unemployment and economic conditions improved.
- Gold Pattern. The countries retook the pattern of gold which they had left behind during World War I and stablish the value as it was before the war and it also set the price of the currency at the same as they were before the war.
These industries were affected because they didn't modernize after the Great War and they were behind of other countries. After the Depression these industries crumbled.
In order to seek help from the government, people started organizing protests but the government didn't have any idea of how to deal with the depression.
All the solutions the government gave they either failed or didn't work.
United States of America
Consequences
- The GDP decreased and went back to normal after the Second World War
- The businessmen weren’t allowed to satisfied their needs and their investments
- The monetary activity wasn’t working and the economic activity decreased
- Roosevelt designed some solutions for the depression that was suffering America
References
Roosevelt created the ‘New Deal’
The Great Depression in Germany. (2015, January 18) Retrieved Feb 14, 2018 from http://alphahistory.com/weimarrepublic/great-depression/
Trueman, Chris (2015) Weimar Republic and the Great Depression Retrieved February 14, 2018. From The History Learning Site. Website: https://www.historylearningsite.co.uk/modern-world-history-1918-to-1980/weimar-germany/weimar-republic-and-the-great-depression/
Anonymous (2018). What was the impact of the great depression in Germany?. 14/02/18, de SAHO Sitio web: http://www.sahistory.org.za/article/crisis-capitalism-germany-grade-11
Programs and policies to give peole hope
Temporary solution
Led to the election of Franklin D. Roosevelt
Fanilies divided and migrated looking for jobs
12,830,000 people unemployed
Causes
Overproduction
Stock market crash, 1929
Unevenly distributed income
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