Frequent question: How did the stock market crash affect other countries?

What other countries were affected by the Great Depression?

The Great Depression that began at the end of the 1920s was a worldwide phenomenon. By 1928, Germany, Brazil, and the economies of Southeast Asia were depressed. By early 1929, the economies of Poland, Argentina, and Canada were contracting, and the U.S. economy followed in the middle of 1929.

Why did the Great Depression spread from the US to other countries?

After a decade of unprecedented boom in the U.S., known as the “Roaring Twenties”, the US economy had run out of steam. … The Great Depression spread rapidly from the US to Europe and the rest of the world as a result of the close interconnection between the United States and European economies after World War I.

How did different countries respond to the Great Depression?

One response to the depression was military dictatorship–a response that could be found in Argentina and in many countries in Central America. Western industrialized countries cut back sharply on the purchase of raw materials and other commodities.

What impact did the crash have on the economy?

The crash brought financial ruin for many businessmen and financiers. America’s GNP dropped by almost 50 per cent. Car production fell by 80 per cent and building construction by 92 per cent. Firms went bankrupt.

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What finally brought an end to the depression in the US?

Private investment spending grew by 28.6 percent. … This all happened during the biggest reduction in government spending in U.S. history, under President Harry Truman. In sum, it wasn’t government spending, but the shrinkage of government, that finally ended the Great Depression.

Why did the Great Depression in America affect Europe so quickly?

As European countries tried to recover from the war, they depended on American financing. That’s how in 1929, when the American economy started its crash, it brought Europe down with it. Then it was Europe’s connections that quickly made this a global economic crisis.

How was Europe affected by the Great Depression?

The Great Depression severely affected Central Europe.

The unemployment rate in Germany, Austria and Poland rose to 20% while output fell by 40%. … Germany’s Weimar Republic was hit hard by the depression as American loans to help rebuild the German economy now stopped. Unemployment soared, especially in larger cities.

Did the gold standard Cause the Great Depression?

There is actually a small minority that does blame the gold standard. They argue that large purchases of gold by central banks drove up the market value of gold, causing a monetary deflation. … The gold standard did not cause the Great Depression.