Impact of Great Depression on British and German Policies - Essay Example

Download file to see previous pages... This was characterized by many detrimental consequences, including a decline in the global industrial output. However, different governments developed ways of dealing with the Great Depression, mainly through policy responses. Nonetheless, as compared to the present times, the policy responses adopted by governments in the Great Depression period are considered to have quite helpless, as compared to what the contemporary governments are capable of. Most of the policy changes undertaken by both Germany and Britain did not turn out to be fully effective in combating the effects of the Great Depression between 1929 and 1932.The Great Depression spread from North America to other European nations, including Britain and Germany, mainly because of the close relationship the United States had with some developed nations in Europe (Wrigley 2008). After the World War I, the United States was a key financier and creditor of most European nations. This was after their economies had been severely devastated by the war. In the case of Germany, the country had lost in the WWI, thus was required to pay reparations to the European nations that won the war, in accordance with the Treaty of Versailles (1919). Germany also needed to undertake industrial reconstruction, following the devastating effects of the war. This situation forced Germany to borrow money from the United States in order to accomplish the demands. However, when the economy of America experienced the Great Depression....
Germany also needed to undertake industrial reconstruction, following the devastating effects of the war. This situation forced Germany to borrow money from the United States in order to accomplish the demands. However, when the economy of America experienced the Great Depression, the country had to recall its loan from Germany, and this was the major cause for the collapse of the banking system in Germany, which marked the beginning of the Great Depression in the Germany. The Great Depression had major effects on both Germany and the Great Britain. This affected the economic, social, as well as political spheres of these countries. As compared to the Great Britain, Germany was hit most by the Great Depression. In Germany, the rate of unemployment rose sharply. Beginning 1929, Germany started to experience increased unemployment rates, and this was felt until 1932. Overall, it is estimated that by 1932, 6 million of Germany’s workforce was unemployed. This represented 25% of the workforce. On the other hand, the effect of the Great Depression in Britain was highly experienced in its industrial and export sectors. The effects on these sectors in Britain were felt until the period of the WWII (Wrigley 2008). In order to alleviate the severity of the Great Depression, all the affected countries, including Germany and Britain, adopted various measures, which they considered effective to address the situation. In all those strategies adopted, a major aim was to protect the domestic production of the country. This included the imposition of tariffs, setting quotas on foreign imports, and raising existing tariffs, among others. Nonetheless, ...Download file to see next pagesRead More