How did America cope with the Depression? Why was the depression in the United States so long-lasting and what effect did it have on Europe? What's your opinion?
After World War I, European states and the United States sought a more liberal market, free from state intervention. However, the war had strengthened cartels and labor unions, therefore some governments felt these organizations were necessary. With the downturn in domestic economies, and the fall of the stock market, an international crisis had begun.
Most of Europe’s prosperity was built upon the bank loans to Germany, so when investors started to pull their money out of Germany after the crash of the stock market, the banks of Germany and other European states were left weakened. In all actuality, the global economy was severely in disarray, so much so that Americans found it difficult to cope with unemployment, the depression lasting longer that it should have, resulting in a huge impact on the European nations.
Most of Europe’s prosperity was built upon the bank loans to Germany, so when investors started to pull their money out of Germany after the crash of the stock market, the banks of Germany and other European states were left weakened. In all actuality, the global economy was severely in disarray, so much so that Americans found it difficult to cope with unemployment, the depression lasting longer that it should have, resulting in a huge impact on the European nations.
