A global depression - The collapse of the American economy sent wave threw the entire world. The american market in Europe dropped as well. America had to withdraw money from Europe. Many countries that were supported by American goods suffered.
Effects throughout the world - Germany and Austria were hit hard. Austria's largest bank failed. In Asia both farmers and urbans suffered because their exports fell by half. Prices collapsed.
The world Confronts the crisis - The depression confronted democracies with a serious challenge to their economic and political systems. Each country met the crisis in its own way.
Britain takes steps to improve its economy - The depression hit Britain severely. They passed high protective tariffs, increased taxes, and regulated the currency. Its lowered interest rates o encourage industrial growth. It had a steady recovery. By 1937 unemployment had been cut in half.
France Responds to economic crisis - France had a more self sufficient economy, In 1930 it still had plenty of agriculture and was less dependent on trade. One million french workers were unemployed in 1935 nevertheless. In 1933 five coalition government formed and fell. The popular front was formed and passed a series of reforms to help help the workers. It failed.
Socialist Governments Find Solutions - The socialist governments in Denmark, Sweden, and Norway also met the challenge of economic crisis. In sweden. the government sponsored massive public works projects the kept people employed and producing. They raised pensions for elderly and increased unemployment insurance, subsidies for housing, and other welfare benefits.Governments taxed all citizens to pay for these benefits.
Recovery in the united states - Franklin Roosevelt was elected president and bega a program of government reform call the New Deal. It provided jobs. New government agencies gave financial help to businesses and farms. Public money was spent on welfare and relief programs. Regulations were imposed the stock market and the banking system. The new deal did eventually reform the American economic system.