Great Depression HIST213 Midterm

Great Depression HIST213 Midterm - The Great Depression was...

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considered world powers during the early 1900’s. One reason was because Britain, France, Germany, and the U.S were all interconnected economically after WWI. Reparations had to be paid to the U.S from Britain and France after Germany paid reparations to both of those countries. However, Germany was putting itself in even more debt because they took loans from American banks in order to repay both Britain and France. This was called the Dawes Plan. This plan entailed higher interest rates on the loans made to Germany, which helped maintain the American economy. Even though American began to rebuild its economy slowly, the European nations had a rough time recovering after the Depression. With Germany already in debt to the U.S, inflation became a major issue. The German government decreased public spending which made the inflation crisis even worse. This resulted in mass unemployment due to business failures. Again Germany was placed in an even worse situation with the impending collapse of the country’s banks in 1931. Britain’s economy wasn’t at its best either. Shipping was a major part of Britain’s economy, however due to extreme damage caused by submarine warfare during WWI and rival nations, Britain’s economy plummeted. Even Britain’s banks were not being utilized since the U.S was lending money from their banks to most of the European nations. Coal production used to be a huge source of income for Britain; however Germany’s coal fields were given to France after the war, so France was in the lead in this market. Unemployment reached an all-time high of two million then continued to remain above one million for the rest of the decade. The British government tried to keep public spending at a low rate, just as Germany had tried to do. They left wages and hours
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Great Depression HIST213 Midterm - The Great Depression was...

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