The World in the Great Depression Chapter 13, Section 2

The Great Depression…

Before the Crash Countries having difficulty before crash Allies in debt to US Many nations still recovering from WWI

How the Depression effects the World Britain had high interest rates and unemployment Germany’s reparations led to high inflation, crippled economy Japan’s economic depression forced banks to close

Smoot-Hawley Tariff Act, 1930 Hoover signs into law Place a high tax on imports Encouraged Americans to buy American products Backfired: other nations increased their tariffs on American goods, trade at a stand still among nations

The World wide depression The postwar era left many countries politically unstable. As the Depression continued, unrest grew worse.

Political Impact Extremist political groups gain strength Germany: Nazi party blamed Jews Italy: dictator Benito Mussolini tightened control of the nation Widespread misery worldwide Ideal conditions for rise of leaders who promise to restore their nations to glory Worse crisis lay ahead…