How Did The Great Depression Affect The Economy
The Great Depression had caused more impact on countries that depended on exportation of raw materials. As agricultural surpluses were growing the prices started to fall due to overproduction. The United States was doing well at first after the war; however, the crash on Black Thursday caused stock prices to plummet. The crash of the stock market caused many investors to lose all of their money, thus crippling the stability of the investments. With all the chaos happening to the economy in the United States, it caused more issues with Germany and Austria because they received loans from the United States. Therefore, when they stock market crashed and the demand for industrialized products dropped, banks lost money, people lost jobs, and loans
could not be paid for. Many countries viewed capitalism as the issue for which the global economy was in crisis, in turn, they (the countries) attempted to establish various forms of government (socialism, fascism, etc.).
could not be paid for. Many countries viewed capitalism as the issue for which the global economy was in crisis, in turn, they (the countries) attempted to establish various forms of government (socialism, fascism, etc.).