1. How did Europe respond to the Great Depression?

2. GREAT BRITAIN Follows traditional orthodox economic theory.... A neo-Mercantilist point of view Looks inward, avoid sforeign problems Balanced-budget, unemployed workers receive barely enough welfare to live

3. FRANCE Economic stagnation reflects continued political crisis of the 1930’s No stability in government, moderate republicans being zapped from all sides (Communists, Fascists, semi- Fascists, etc.) “Popular Front” rules from 1936- ’37, tries social reform using the U.S.A “New Deal” as their model Wild swings in the economy On the verge of civil war

4. SCANDINAVIAN COUNTRIES – Norway, Sweden, Denmark Social Democrats advocate- Cooperative Community Action Lots of government spending, high- taxes, large bureaucracy This “Welfare System” offers a middle- way between Capitalism and the rising cruel world of Fascism and Communism in practice.... Most successful response of ANY region in Europe to the cirse

5. GERMANY American loans to help rebuild German economy stop Unemployment rate reaches 32% in 1932! Anti-capitalist political ideologies swell in popularity (Nazis, Communists) Many think the old ideas of liberty individual rights/responsibilities elected governments economic freedom are outmoded....