1. The World in the Great Depression
Chapter 13, Section 2

2. The Great Depression…

3. Before the Crash Countries having difficulty before crash
Allies in debt to US
Many nations still recovering from WWI

4. How the Depression effects the World
Britain had high interest rates and unemployment
Germany’s reparations led to high inflation, crippled economy
Japan’s economic depression forced banks to close

5. Smoot-Hawley Tariff Act, 1930
Hoover signs into law
Place a high tax on imports
Encouraged Americans to buy American products
Backfired: other nations increased their tariffs on American goods, trade at a stand still among nations

6. The World wide depression
The postwar era left many countries politically unstable. As the Depression continued, unrest grew worse.

7. Political Impact Extremist political groups gain strength
Germany: Nazi party blamed Jews
Italy: dictator Benito Mussolini tightened control of the nation
Widespread misery worldwide
Ideal conditions for rise of leaders who promise to restore their nations to glory
Worse crisis lay ahead…