These small states attempted to be self-sufficient by increasing exports and setting high tariffs, but they had to borrow heavily to do so. Increasing population was another factor to contend with, forcing these countries to spread out their already low incomes. Finally, increased trade and population movement barriers caused by the war compounded Europe's economic problems.
World War I itself was not actually responsible for declines in economic productivity. The industrial countries were already poised for a recession due to the cyclical structure of their economies. The war did, however, make recovery from this recession more difficult by depressing productivity. This meant that the world, especially Europe, was suffering from lower than normal levels of productivity when the next cyclical depression struck in 1929. A more important factor of instability brought about by the war was the reversal of the change of capital flows.
Before WWI, the United States was a debtor nation. We owed vast sums of money to Europe, especially Britain. During the war Europe was not only forced to liquidate their U.S. investments, but to take on debt as well. This established the United States as the prime creditor in the world. In fact, we financed eighty percent of the post-war relief. After the war, the European countries had a heavy trade deficit, making it impossible for them to pay us back. As a creditor, we should have imported more than we exported, allowing these nations to reduce the debt. We had become self-sufficient, however, and maintained an isolationist stance, allowing very few imports. This forced countries to develop a surplus in trade with other nations before they could pay us back. Since very few countries could do this we had to continually loan out money to help them rebuild their economies to pay us back. The destabilizing effect of this loan cycle will be discussed later.
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The Great Depression The Great Depression was one of the longest depressions in the history of North America left Americans shaken. ... My grandmother, a survivor from the great depression says "we had to gather food from were ever we could find it, we were starving". ... The Great Depression sent people that were ordinarily comfortable with life scurrying for reassuring shelter and it left many people badly shaken from the experience. ... People that went through the Great Depression and survived will forever remember the way that it felt to stand in line for hours for food or even to...
Economics during the Great Depression were very different than periods of time during the depression. ... People were not earning much money during The Great Depression. ... Political views also changed during the Great Depression. ... Shirley Temple, Will Rogers, and marie Dressler were few great performers during the Great Depression. ... The Great Depression has definitely left it's mark on America. ...
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The Great Depression When Franklin D. Roosevelt took office, America was going through what was known as the Great Depression. ... Farm families are an example who suffered during the Great Depression. ... The banks were closing down due to the depression. ... The Great Depression was not the first or only depression Americans had seen, but it was the worst. ...
The Great Depression The Great Depression was the greatest economic slump to ever occur in US history. The depression began in late 1929 and lasted throughout the following decade. Several factors played key roles in bringing about the depression. ... However, though a great deal more work was being done, the average wage for a manufacturing worker increased minimally. ... Though the Great Depression has long since ended, it continues to leave an indelible imprint on our economic society. ...
Great Depression was the worst and longest economic collapse in the history of the modern industrial world. ... The depression started in the United States and spread to most of the world's industrial countries. ... During the Great Depression there were rapid falls in the production and sale of goods and a rise in unemployment. There were many factors to the cause of the Depression. ... Another one of the factors to the Great Depression was what the government had done or had not done to ensure that this would not happen. ...
The Great Depression On Thursday October 24, 1929 at 10:00am the stock market bell went off at the New York Stock Exchange, stocks were plummeting down. ... The Great Depression did not just happen there were many factors that contributed to the depression like the United States international credit system, economic dependency, and international trade policies. ... The great depression is a very important chapter in our history. Through the great depression we learned many great lessons and as a country we came to realize how fragile what may ...
Causes of the Great Depression The Great Depression was the severe economic crisis that began in 1929, that sent the United States into a frenzy. ... It's undeniable that the Great Depression was one of the hardest trails the US has had to endure. ... The Great Depression was a trying and difficult time for America. ... Work Cited Page America's Great Depression. ... Available http://odur.let.rug.n1/~usa/H/1994/ch9_p8.htm "Great Depression" Encyclopedia.com . ...
