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Global Depression

END

The wave of bank failures in the United States influences London.

Japan invades Manchuria in 1931 to obtain resources.

The impact was very severe in Europe who had depended on American loans to recover from WWI.

Results

  • Overdependence on American loans

Causes

  • Increase in tariffs and protectionism
  • Industrial and farming surpluses leading to deflation
  • Poor banking management
  • Harships led to political instability such as criticism of the capitalist system and the promotion of dictatorial rule.
  • Global unemployment rose to doble digit levels.
  • Diplomatic protest of the league of Nations resulted from Japans industrial needs.
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