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World Depression - Research Paper Example

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Summary
Just a decade preceding the World War II, world witnessed one of the harshest economic depressions of the time when in 1929, economy of US started to crumble. Though the overall timings of the recession for different countries differed however, it has now been accepted that Great Depression started during 1929…
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World Depression
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World Depression

Download file to see previous pages... It has been argued that just after the World War 1, the old European World Order actually failed to create an equitable and wise order to ensure peaceful settlements between the nations. The war has taken its toll on the respective economies of the European countries also as besides losing millions of soldiers and civilians, European economies suffered due to lack of economic growth and prosperity. This started to further worsen when world economy started to suffer due to the collapse of the US economy. The crash of US Stock Market during October 1929 started a chain reaction of economic downturns at the global level where industrialized countries started to face the similar decline in economic activity. Germany especially felt the most of the brunt as it was not only devastated by war but by low economic output and slow growth too. Since most of the money borrowed to finance the war came from US therefore the overall economic consequences of this have been harsh at the global level. What caused this recession, the effects it left on the global economy and whether this event led to the second World War are some of the questions which will be discussed in this paper. Great Depression It has been unanimously accepted that the Great Depression started with the collapse of US Stock market. ...
(Bentley, Ziegler and Streets-Salter.) It is critical to note that US was the largest lender during the World War 1 and many allies countries have extensively borrowed from US. In the aftermath of the recession in US and the failure of the financial institutions, banks in US started to call their loans thus putting pressure on already devastated economies of Europe. These actions therefore created a strong chain reaction of economic downturn at the global level thus creating a global recession. (Ludlam) Many also argue that the rise of economic distress also allowed the rise of Fascism within the European block and aroused the sentiments which finally led to the World War 2. World War II and Great Depression The decline in the economic activity as well as the rising inequality within Europe due to economic crisis has allowed rulers like Hitler to dominate the policy making arena within Europe. People were miserably exhausted not only by the World War 1 but by the economic collapse of these countries also. The spread of the global recession therefore slowly and gradually led to the march towards the Second World War. (Garraty) Though the economic slowdown has allowed rulers like Hitler to rise and dominate however the World War II could have been averted probably with the help of collaborative economic approach where the political solution of the problem could have been sought. During that era, US largely remained neutral however; it continued to provide supplies as well as other support to the allies. If during that era, US has maintained its neutral stance for longer and without actually discriminating between the nations, the ...Download file to see next pagesRead More
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