The Great Depression Essay

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The Great European Depression following World War I drastically altered the European society by causing economic problems, poverty widespread unemployment. The Great European Depression was an economic downturn that began in 1929 and gradually ended in the early to mid 1930s. The causes of the Great Depression were a series of economic problems in the second half of the 1920s . The other factor in the coming of the Great Depression was an international financial crisis created by the collapse of the U.S. stock market in 1929 . The Dawes Plan, proposed in 1924, was created to help Germany pay off its reparations. However, the plan did not work and hostilities between countries erupted like wildfire. The effects of the Great Depression were extensive unemployment and poverty in Europe. A reaction to the Great Depression was the expansion of government activity in the economy, across several European countries. In the 1920s, prices for goods and farm products were dropping due to overproduction and underconsumption. Countries in central and eastern Europe imposed laws to close all trading with other countries’ goods. The coal industry also suffered when oil use spiked before 1929. After World War I, many countries struggled to adjust to postwar inflation . This series of economic problems had a devastating effect on the European economy. Eventual recovery in countries was slow and took much effort. Overproduction of farm products, such as wheat and barley, resulted in a decrease of prices for these goods. When you combine this overproduction with underconsumption, serious economic issues arise. The economy produced more than it consumed, because the consumers did not have enough income. The international financial crisis occurred in 1929. Much of the European prosperity between 1924 and 1929 was built upon U.S. loans to Germany. Germany was given money

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