The Great Depression

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  • Created by: naomi.**
  • Created on: 06-03-18 21:42

The Great Depression

Causes

  • America grew rich after WWI & international trade by the US grew meaning in 1924 huge sums of money could be and were lent to countries like Germany by US banks to help them rebuild/ pay war debts. However by 1929 confidence in the US economy was in decline and Americans sold their shares in a panic. International trade with countries like Germany stops as US companies lose all of their money when their shares become worthless. so they collected their loans back from places they lent to e.g. Germany

Effects

  • German banks suffered huge loses on US stock market.
  • Which meant that banks lost so much money that people feared they wouldn't be able to access money in bank accounts.
  • Because of this, people rushed to queue up outside banks and take all their money out.
  • To pay this money out to account holders, German banks had to demand all money back from any loans they'd given to businesses. Which meant two things:
  • Because the depression was worldwide, abroad sales fail.
  • Businesses closed or cut down the workers which led to unemployment. With no work, and benefits slashed, families suffered terrible poverty.

Overall summary

Due to the Great Depression, Germany suffered severely, and this led to unemployment, dissatisfaction with the weak Weimar government. This increased membership of extreme left and right-wing parties.

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