The tortured decade, 1930-1940 - the Great depression - consequences and responses

8 important questions on The tortured decade, 1930-1940 - the Great depression - consequences and responses

What was the result of the depression?

a massive unemployment. in germany, 1/3 of the workforce was unemployed. job insecurity was a large problem

How did governments try to stabilize their currency?

they tried to balance their budgets to reassure investors.

How did governments try to stabilize their budgets

the economy was shrinking and tax revenue with it, so the governments cut spending.
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How did governments try to improve their position on the global market?

the governments forced wages down to compete.

How did these two measures further damage the economy?

both these measures decreased demand since governments and people spent less money. damaging the economy even further.

Why didn't governments intervere in the economy?

the governments still operated on the traditional economic model that stated that the free market would level itself out. they stopped doing so in 1932 when that approach was clearly a failure.

How did governments try to stimulate their economies?

in the U.S. president roosevelt introduced the New deal, increasing government spending. in italy, the government infused capital into failing companies and in germany,under hitler's rule, the economy was stabilized, spending was increased, mostly on rearmament and ensuring complete employement

How did the scandinavian countries respond to the crisis?

they took a different approach. the socialists won in the three major countries and imposed a wellfare state. they paid for this by raising taxes and cutting military spending

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