How did the Great Depression affect non-US countries.

[Professor James]

I've learned a lot how the Great Depression affected the USA but I've never learned what was the worldwide affect of the great depression. Is it touched upon a lot in other countries?

 

[Melon Hunter]

Yeah... just a bit. Arguably, the Great Depression kicked the legs out of the recovering German economy thanks to the US demanding the immediate repayment of rebuilding loans, which led to hyperinflation and the rise of the extreme left and right, and eventually the Nazi Party. In fact, most European economies tanked with the American economy as they were tied to the US by loan repayments from World War One. I'm not so sure if countries further afield were directly affected, but the Great Depression is one of the major reasons for Nazi Germany and World War Two, so... yeah. There's that.

 

[Cabisco]

Even back then international trade meant all countries where affected, just not quite to the same extent as the USA.

I have a half memory from many years ago which linked the Great Depression to the rise of Hitler, the details are hazy but went something like this:

When the USA went into emo mode it meant that it could no longer give Germany loans to build up it's economy through the Dawes plan (I think, might be wrong) in order to pay off it's war reperations laid down in the treaty of Versailles. With the Weimar republic dependant on these loans to keep up it's economy the fact the USA could no longer provide them meant Germany had it's own economic collapse, unable to pay it's debts which in turn lead to the french occupation of some factory district (rienland..?). All of this contributed to the German public hating it's new democractic government and lead people to start listening to alternatives, of which Hitler was one option.

The fact I can even remember that is a testement to my old history teacher from years ago. Well done him.

 

[Veylon]

I think the Soviet Union was about the only country not affected, isolated as they were. Of course, they were having issues that made the Dust Bowl look like a sandbox, but it wasn't the same depression as everyone else.

 

[Owyn_Merrilin]

If anything, the Great Depression hit Europe before it hit the US, since everybody was broke after the war. Economies in Europe were in terrible shape for a while before things went tits up in the US -- which is a pretty scary thought, when you consider what's going on with the EU's economy at the moment. We're not totally out of the woods on the recession yet, and I can see a collapsing Eurozone leading to a collapsed American economy.

 

[khiliani]

yeah, when americas economy tanked, it dragged down the british, who in turn draged down australia by demanding various lone repayments. australia had 1/3 unemployment and the like, and was very bad, or so says my grandpa

 

[QuartzQuadreant]

Yeah... just a bit. Arguably, the Great Depression kicked the legs out of the recovering German economy thanks to the US demanding the immediate repayment of rebuilding loans, which led to hyperinflation and the rise of the extreme left and right, and eventually the Nazi Party. In fact, most European economies tanked with the American economy as they were tied to the US by loan repayments from World War One. I'm not so sure if countries further afield were directly affected, but the Great Depression is one of the major reasons for Nazi Germany and World War Two, so... yeah. There's that.

Of course, the major effect everyone talks about is this. The American economy was helping build up the German economy via the Dawes Plan (and later the Young Plan which was put into place because the annual loan repayments for Germany were too high, which I think was deliberate on the Allies' part), which allowed Germany to pay back its debts from the Treaty of Versailles after the French got tired of waiting for their money and occupied the Rhine, Germany's main manufacturing area. Talk about kicking someone while they're down... It resulted in America loaning to Germany, and the money then went to other European nations, who repaid America for the war. The economy was basically stuck on America, so when it collapsed, it took the whole world with it, really.

 

[SilentFlames26]

New Zealand had a major increase in the amount of unemployed sitting at about 13.8% of the eligible population as well as a serious downturn in economy which left our main industry, dairy production, running at a loss for both 1931 and 1932.

Yeah... just a bit. Arguably, the Great Depression kicked the legs out of the recovering German economy thanks to the US demanding the immediate repayment of rebuilding loans, which led to hyperinflation and the rise of the extreme left and right, and eventually the Nazi Party. In fact, most European economies tanked with the American economy as they were tied to the US by loan repayments from World War One. I'm not so sure if countries further afield were directly affected, but the Great Depression is one of the major reasons for Nazi Germany and World War Two, so... yeah. There's that.

Of course, the major effect everyone talks about is this. The American economy was helping build up the German economy via the Dawes Plan (and later the Young Plan which was put into place because the annual loan repayments for Germany were too high, which I think was deliberate on the Allies' part), which allowed Germany to pay back its debts from the Treaty of Versailles after the French got tired of waiting for their money and occupied the Rhine, Germany's main manufacturing area. Talk about kicking someone while they're down... It resulted in America loaning to Germany, and the money then went to other European nations, who repaid America for the war. The economy was basically stuck on America, so when it collapsed, it took the whole world with it, really.

Neither of those plans had any effect though as the Germans no longer owed money to the French, but instead owed it to the US which did nothing to slow down hyperinflation. The US also owed money to European nations who as you said owed it to them in turn which led to a "Money Go Round" where money was being passed from ahnd to hand to pay off debts, but no one was receiving benefit for it

 

[Tiger Sora]

Lets see. Canada > See America

England faired very poorly. Being heavily set in manufacturing and ship building, with no money to spend, no one wanted to buy, factories shut down and shipyards stopped.

Soviet Union. Again faired badly, but belief in Communism rose substantially due to the "failings of capitalism". The great purge began, throwing out, sending to the gulag and executing those not ideal to have around for the party's interests. The military command was greatly affected buy the purge, this is why Germany did so well when they invaded in 1941.

Spain. More woes, lead to the resignation of the Prime Minister, the rise of the Fascists, and than the fall of the Royalists and the Monarchy during the ensuing civil war.

Germany. As someone said, got the stuffing punched out of them when everyone wanted money Germany was being forced to pay, to be paid. Lead to the rise of the enigmatic evil leader infamous in history. Adolf Hitler and his Nazi party. Though he eventually did pull his country out of recession by the mid 30's. Building up industry, tearing up the Treaty of Versailles and rearming the military. They also helped the Fascists in Spain rise to power by lending planes and pilots for their side. (The Condor Legion).

Really the whole of Europe was one big pool of suck for about 7 years after the stock market crash.
Same with South America due to all the heavy US investment there. US sucks, South America sucks.

Countries that actually did well

One of the few countries not adversely smashed by the affects of the great depression was Japan. 1928-31 saw a 8% cut in the economy. A fiscal plan of government stimulus followed by a devaluation of the currency was applied. Saving the economy. Industries like textiles actually flourished because they were cheaper to obtain in Japan than from England. The Empire of the Rising Sun modernized more so during this period. Building it's military and launching offensives into China and SE asia, the pacific islands also. Japan was probably the only country to see large increases to it's military budget in the first half of the 1930's.

 

[Not G. Ivingname]

Why don't you go on Wikipedia and find out?

http://en.wikipedia.org/wiki/Great_Depression

You will most likely find more detailed information than we will ever be able to give.