Article Readings - Comparative History James Smith III
Set 3 – The Great Depression On October 29, 1929 – Black Tuesday the stock market crashed and the Depression began, stock prices fell to 50 percent within three weeks and sent banks and investors around the world into a downward spiral Although it is agreed that “Black Tuesday” was where the depression made its public debut, the depression had been brewing for quite some time. There was a cycle of “ups-and-downs” in the economy, where speculators would send the stock market way to high and there would be over production and then that would be followed by a period of unemployment. The cycle was endless until the Great Depression.
Set 3 – The Great Depression Besides the endless cycles of economic prosperity and economic collapse the world economy was also being drawn down by the amount of debt that European nations had accumulated during the first World War. The theory was that a wounded Germany would be able pay the debts of all the countries, but there was no way that was going to happen. Nations worldwide had to deal with unemployment rates from 15-30 percent.
Set 3 – The Great Depression The Great Depression also brought with it the theory of strong central governments Governments watched how the Soviet Union was able to avoid the economic slump by using a “planned economy” which included public works program, deficit spending and “welfare state”. This led to many governments to have left-leaning leaders who copied this success. President Franklin D. Roosevelt's – His “New Deal” owes some of its structure to the Soviet Union, but it wasn’t the only thing that helped the nation get out of the Great Depression.
Set 3 – The Great Depression Effect on Governments: The British decided to get rid of Free Trade Many Countries decided to go into self protectionism Keynesians – helped reform national economies of many countries with their belief that the government could help solve economic problems when it injected money into the national economy In the United States, Social Security Act was passed and made the country a “Welfare State”
Set 4 – World War Two Began in 1939 The War got the United States on December 7, 1941 during the attack on Pearl Harbor Because the war needed supplies it helped end the Great Depression and employ many people around the world to help the war effort. Japan would later be the economical and political rival the United States
Set 4 – World War Two The United States claimed to be neutral in the war. But FDR decided to sell arms to England, he was able to get the ok from congress because England would allow the United States to lease bases.This began the United States move away from isolation. Although many Americans did not want to be involved in the war at all, Winston Churchill the Prime Minister of Britain begged President Roosevelt to enter the war. Winston Churchill
Set 4 – World War Two It is believed by many that the United States and Britain could have stop the war in they would have stopped Hitler from moving into Poland. But the United States decided to stay neutral and passed the Neutrality Act of 1935 which kept the country out of the war. This all changed on December 7,1941 when Japan attacked the Pearl Harbor in Hawaii, where over two thousand people were murdered
Set 4 – World War Two The United States and its allies would win the war Europe and Asia would be devastated by the war. Millions were killed and the cities were destroyed. This gave way to the “lost generation”- people who lost their since of direction after the war ended The war’s death toll is over 50 million