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The Big Picture of the depression


He blamed Coolidge whom when in office said that stocks were cheap at the current prices. In England MacDonald blamed capitalism. In Germany the main cause of the Depression was believed to political in origin. They believed the conditions of the Versailles treaty played a large part in lessening their economy. France, who entered the Depression later then other countries, blamed the United States who by using "Mechanization" pushed them into the Depression. It was once said that "the Depression was like syphilis, which before its nature was understood was referred to in England as the French pox, as the Spanish disease in France, the Italian sickness in Spain, and so on." (169) However, most people see the Wall Street crash of 1929 as the cause of the Depression. .
             After start of the Depression, world leaders started to formulate ways to end it. The first idea that most countries had was to limit trade. Hoover signed the Hawly-Smoot protective tariff, which he was advised by economist not to. Great Britain also adopted the protective imperial preference system. In Europe " country after country passe laws aimed at reducing their imports of wheat and other foreign food products."(169) These ideas didn't improve conditions but it is said that if they had not been enforced they would have probably worsened conditions, either way they were not of much help. .
             The second idea that most countries came up with was to balance their annual budgets. Hoover tried for this in his term and even when Roosevelt was in office he wrote him a letter stating "there will be no tampering or inflation of the currency and that the budget will be unquestionably balanced even if further taxation is necessary." (170) The balancing of the budget became a first priority for Roosevelt, not because of the letter however. In England, Macdonald raised takes by £47 million in an effort to balance the budget. And Germany's chancellor, Heinrich Bruning, promised the German president that he would secure the government finances.


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