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The 1930s were a decade of unmitigated crisis culminating in the outbreak of a second total war.

Armed conflict began in Manchuria in 1931 and spread to Abyssinia in 1935, Spain in 1936, China in 1937, Europe in 1939, and the United States and U. The Depression did not cause the rise of the Third Reich or the bellicose ideologies of the German, Italian, and Japanese governments (all of which pre-dated the 1930s), but it did create the conditions for the Nazi seizure of power and provide the opportunity and excuse for Fascist empire-building.

Hitler and Mussolini aspired to total control of their domestic societies, in part for the purpose of girding their nations for wars of conquest which they saw, in turn, as necessary for revolutionary transformation at home.

This ideological meshing of foreign and domestic policy rendered the Fascist leaders wholly enigmatic to the democratic statesmen of Britain and France, whose attempts to accommodate rather than resist the Fascist states only made inevitable the war they longed to avoid.

Great Depression and the reasons for its severity and length is highly political, given the implications for the validity of theories of free market, regulated, and planned economies, and of monetary and fiscal policy.

It is usually dated from the New York stock-market crash of October 1929, which choked the domestic and international flow of credit and severely damaged global trade and production.

Wall Street prices fell from an index of 216 to 145 in a month, stabilized in early 1930, then continued downward to a bottom of 34 in 1932.Industrial production fell nearly 20 percent in 1930.Unlike previous swings in the business cycle, this financial panic did not eventuate in the expected period of readjustment, but rather defied all governmental and private efforts to restore prosperity for years until it seemed to a great many that the system itself was breaking down. Americans blamed the Europeans for the reparations tangle, for pegging their currencies too high upon the return to gold, and for misuse of the American loans of the 1920s.Europeans blamed the United States for its insistence on repayment of war debts, high tariffs, and the unfettered speculation leading to the stock-market crash. More tangibly, however, a sudden contraction of international credit in June 1928 made an international emergency likely.Since the Dawes Plan of 1924, Europe had depended for capital and liquidity on the availability of American loans, but increasingly American investors were flocking to the stock market with their savings, and new capital issues for foreign account in the United States dropped 78 percent, from 0,000,000 to 9,000,000.Loans to Germany collapsed from 0,000,000 in the first half of 1928 to ,000,000 in the second half and to ,500,000 for the entire year of 1929. Conceived and passed by the House of Representatives in 1929, it may well have contributed to the loss of confidence on Wall Street and signaled American unwillingness to play the role of leader in the world economy.A world crisis was also brewing in basic commodities, a market in which prices had been depressed throughout the decade. Other countries retaliated with similarly protective tariffs, with the result that the total volume of world trade spiraled downward from a monthly average of ,900,000,000 in 1929 to less than

Wall Street prices fell from an index of 216 to 145 in a month, stabilized in early 1930, then continued downward to a bottom of 34 in 1932.

Industrial production fell nearly 20 percent in 1930.

Unlike previous swings in the business cycle, this financial panic did not eventuate in the expected period of readjustment, but rather defied all governmental and private efforts to restore prosperity for years until it seemed to a great many that the system itself was breaking down. Americans blamed the Europeans for the reparations tangle, for pegging their currencies too high upon the return to gold, and for misuse of the American loans of the 1920s.

Europeans blamed the United States for its insistence on repayment of war debts, high tariffs, and the unfettered speculation leading to the stock-market crash. More tangibly, however, a sudden contraction of international credit in June 1928 made an international emergency likely.

Since the Dawes Plan of 1924, Europe had depended for capital and liquidity on the availability of American loans, but increasingly American investors were flocking to the stock market with their savings, and new capital issues for foreign account in the United States dropped 78 percent, from $530,000,000 to $119,000,000.

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Wall Street prices fell from an index of 216 to 145 in a month, stabilized in early 1930, then continued downward to a bottom of 34 in 1932.Industrial production fell nearly 20 percent in 1930.Unlike previous swings in the business cycle, this financial panic did not eventuate in the expected period of readjustment, but rather defied all governmental and private efforts to restore prosperity for years until it seemed to a great many that the system itself was breaking down. Americans blamed the Europeans for the reparations tangle, for pegging their currencies too high upon the return to gold, and for misuse of the American loans of the 1920s.Europeans blamed the United States for its insistence on repayment of war debts, high tariffs, and the unfettered speculation leading to the stock-market crash. More tangibly, however, a sudden contraction of international credit in June 1928 made an international emergency likely.Since the Dawes Plan of 1924, Europe had depended for capital and liquidity on the availability of American loans, but increasingly American investors were flocking to the stock market with their savings, and new capital issues for foreign account in the United States dropped 78 percent, from $530,000,000 to $119,000,000.Loans to Germany collapsed from $200,000,000 in the first half of 1928 to $77,000,000 in the second half and to $29,500,000 for the entire year of 1929. Conceived and passed by the House of Representatives in 1929, it may well have contributed to the loss of confidence on Wall Street and signaled American unwillingness to play the role of leader in the world economy.A world crisis was also brewing in basic commodities, a market in which prices had been depressed throughout the decade. Other countries retaliated with similarly protective tariffs, with the result that the total volume of world trade spiraled downward from a monthly average of $2,900,000,000 in 1929 to less than $1,000,000,000 by 1933.Mechanization of agriculture stimulated overproduction, and Soviet dumping of wheat on the world market to earn foreign exchange for the First Five-Year Plan compounded the problem. The credit squeeze, bank failures, deflation, and loss of exports forced production down and unemployment up in all industrial nations.In January 1930 the United States had 3,000,000 idle workers, and by 1932 there were more than 13,000,000.In Britain 22 percent of the adult male work force lacked jobs, while in Germany unemployment peaked in 1932 at 6,000,000.All told, some 30,000,000 people were out of work in the industrial countries in 1932.

,000,000,000 by 1933.Mechanization of agriculture stimulated overproduction, and Soviet dumping of wheat on the world market to earn foreign exchange for the First Five-Year Plan compounded the problem. The credit squeeze, bank failures, deflation, and loss of exports forced production down and unemployment up in all industrial nations.In January 1930 the United States had 3,000,000 idle workers, and by 1932 there were more than 13,000,000.In Britain 22 percent of the adult male work force lacked jobs, while in Germany unemployment peaked in 1932 at 6,000,000.All told, some 30,000,000 people were out of work in the industrial countries in 1932.

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