2.4.1

The Great Depression, 1929

Test yourself

The 1929 Wall Street Crash

In 1929, the Wall Street Crash happened. The American stock market crashed and the country was plunged into the Great Depression as more and more American banks began to fail.

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Stock market crash

  • In 1929 the stock market in America crashed.
  • The price of shares on the New York Stock Exchange plummeted.
  • The country was plunged into a great economic depression.
    • Lots of people were unemployed and the value of American assets (things like shares in businesses, houses etc.) dropped massively.

Stock market crash: loans

  • America had loaned countries across the world lots of money to recover after WW1.
  • Because of the crash, American banks demanded these countries pay the money back.
  • This then helped to spread the Great Depression across the world.
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Impact on the League of Nations

  • Each country suffered severe economic issues.
  • Because of this, they started to take their attention off the League of Nations.
  • Each country focused on their own countries' problems.
  • This made countries more biased when deciding on issues the League was faced with.
    • Because their first priority was protecting their own country.
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Extremist politics

  • People in the countries that were suffering from the Great Depression started to turn to extremist parties who promised to end their suffering.
  • These extremist parties included Right Wing and Left Wing groups.
    • such as fascists and communists
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Dictators

  • The rise of the extremist dictators such as Hitler (Germany) and Mussolini (Italy) weakened the League.
  • These dictators had no intention of working with the League.
  • These dictators worked against much of the Leagues principles set out in their covenant (rules).

Jump to other topics

1Was the Treaty of Versailles Fair?

2Was the League of Nations a Success?

3How did Hitler's Foreign Policy Impact the War?

4Who was to Blame for the Cold War?

5Did the US Contain the Spread of Communism?

6How was USSR's Control Over Eastern Europe?

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