The Great Depression and Its Impact

The Great Depression began with the Wall Street Crash of October 1929 and rapidly spread from the United States to the rest of the world. It had devastating economic, social, and political consequences that fundamentally changed the international landscape. This lesson examines how the Depression undermined the League of Nations and contributed to the rise of aggressive dictatorships.

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The Wall Street Crash and Its Spread

The crash of the American stock market in October 1929 triggered a global economic crisis.

Stage	Explanation
Wall Street Crash	Share prices on the New York stock exchange collapsed in October 1929, wiping out billions of dollars
American banks collapse	Thousands of American banks failed, destroying savings and cutting off credit
American loans recalled	The USA had been lending money to European countries (especially Germany under the Dawes Plan). These loans were now recalled
International trade collapses	Countries raised tariffs (import taxes) to protect their own industries, further reducing world trade
Depression spreads worldwide	Unemployment soared across Europe, Latin America, and Asia

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