Why were U.S. bank loans to Germany vital to the European economy after World War I? Germany used the loans to pay reparations to Britain and France . Superior people who came from Europe's original racial stock that traced its ancestry to Indo-Europeans who began migrating from western Asia around 2000 B.C.E.
What was the Great Depression primarily caused by?
The Great Depression was caused primarily by the stock market crash of 1929 , which saw stock prices plummet by more than 80 percent.
Who was the British economist who argued that economic depressions should be combated through government spending to create jobs and increase demand?
In 1936, British economist John Maynard Keynes wrote The General Theory of Employment, Interest, and Money to explain why the Great Depression had such a long period of time where labor markets did not seem to come into equilibrium, where the demand for labor and the supply of labor are equal.
Why did the Great Depression in the US spread to Europe?
Global Spread: Gold Standard
The stock market crash of October 1929 led directly to the Great Depression in Europe. ... The effects of the disruption to the global system of financing, trade, and production and the subsequent meltdown of the American economy were soon felt throughout Europe.
What did the Great Depression pave the way for in Germany?
The Great Depression was caused primarily by a. an economic downturn and the U.S. stock market crash. ... In Germany, inflation and unemployment during the Great Depression paved the way for a. authoritarian leaders .
Who is to blame for the Great Depression?
As the Depression worsened in the 1930s, many blamed President Herbert Hoover...
Can the Great Depression happen again?
Could a Great Depression happen again? Possibly , but it would take a repeat of the bipartisan and devastatingly foolish policies of the 1920s and ‘ 30s to bring it about. For the most part, economists now know that the stock market did not cause the 1929 crash.
Is a period of low economic activity and rising unemployment?
Consider a recession , a period of low economic activity. ... So unemployment rises and inflation falls during recessions.
What problem with the classical economic theory did the Great Depression expose?
Explanation: After 1929 a doubt was cast over the classical economic theory according to which government should not intervene in the economy. The 1929 crisis brought deflation, banks going bankrupt and massive unemployment with businesses shutting down in masses .
What did Keynes say about the Great Depression?
British economist John Maynard Keynes believed that classical economic theory did not provide a way to end depressions . He argued that uncertainty caused individuals and businesses to stop spending and investing, and government must step in and spend money to get the economy back on track.
What effects did the Great Depression have on the European economy?
The Great Depression severely affected Central Europe.
The unemployment rate in Germany, Austria and Poland rose to 20% while output fell by 40% . By November 1949, every European country had increased tariffs or introduced import quotas.
Which country was most affected by the Great Depression?
The Depression hit hardest those nations that were most deeply indebted to the United States , i.e., Germany and Great Britain . In Germany , unemployment rose sharply beginning in late 1929 and by early 1932 it had reached 6 million workers, or 25 percent of the work force.
Which of the following was a major cause of the Great Depression in Europe?
The stock market crash of October 1929 led directly to the Great Depression in Europe. When stocks plummeted on the New York Stock Exchange, the world noticed immediately.
How did the use of forced labor cause problems for Germany?
How did the use of forced labor cause problems for Germany? It disrupted industrial production in occupied countries that could have helped Germany . the entire Sixth Army, considered the best of German troops, was lost. Japan used airfields on the island to support its naval forces.
What happened in Germany during the Great Depression?
In 1929 as the Wall Street Crash led to a worldwide depression. Germany suffered more than any other nation as a result of the recall of US loans , which caused its economy to collapse. Unemployment rocketed, poverty soared and Germans became desperate. ... Hitler quickly set about dismantling German democracy.
How did the great economic depression affect Germany?
Great Depression led to economic crises in Germany. By 1932, industrial production was reduced to 40 percent of the 1929 level. As a result, jobs were cut and many workers became unemployed. ... The savings of the middle class and salaried employees reduced drastically due to the depreciation of the German currency.
