The Great Depression 1929-33;

In October 1929 the American sharemarket collapsed, which damaged the whole American economy. The effects of this were felt around the world.

Depression in the USA

Money needed in the USA so foreign loans recalled.

Foreign industry & trade collapse.
Worldwide depression.

Countries raise trade barriers to protect own industry.

World trade declines further.
Depression deepens.

The depression led to factory closure, massive unemployment and loss of savings. People felt angry and insecure.

Japan & Manchuria 1931 - The League’s first big test;

Manchuria was located in Northern China. Invading Manchuria had many resources which would assist Japan in fixing their problems caused by the depression;

• coal
• iron ore
• bauxite
• timber
• living space
• markets

When China appealed to the League of Nations for help, the League set up the Lytton Commission to investigate the incident. However, the League did not impose any sanctions on Japan and no one was prepared to use force against them.

The League had failed its first real test. People’s faith in the league was badly shaken although most countries still felt it could be a worthwhile organisation. The success of Japan was also an encouragement for aggression, Japan had shown that you could invade another country and get away with it.

The Depression and Germany

The depression had major effects on the German economy. People lost jobs, sav

By 1932 the Nazis had become the most popular political party in Germany. In January 1933 Hitler became Chancellor (Prime Minister) of Germany. Within a year he had turned Germany into a dictatorship with Hitler as absolute leader. The coming of Hitler to power was important because of his ideas on foreign policy.
Last modified: Thursday, 29 December 2011, 9:02 PM