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October 12, 2007

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Although the effects of the Great Depression were most keenly felt in industrialized countries, the economic tsunami spanned the globe. Chilean workers died from starvation as the mining and nitrate industries collapsed. In the United States one in four workers lost their jobs and were unable to find another for years. Former businessmen sold apples on street corners. There was no social ?safety net? in place to help people survive the economic dislocation. The Hoover administration decided to do relatively little in response, believing that the cycle of boom and bust was inherent and unavoidable in the capitalist system.

In the 1932 presidential election, Americans overwhelmingly voted for change. Franklin Roosevelt?s ?New Deal? dramatically addressed the crisis with a series of programs that fundamentally altered the role of government in American life. In his inaugural address, Roosevelt resolutely declared ?that the only thing we have to fear is fear itself.? Most Americans were glad that, at last, their government was doing something. Did the New Deal end the depression? Had FDR ?actually saved the country? as Mancil Milligan (and countless others) believed?

Other countries dealt with the Great Depression in different ways: How did Sweden and Great Britain respond to the crisis? How did Germany respond?
Posted by      William M. at 12:41 AM CDT

Comments:

  Brooke W.  says:
Roosevelt and his New Deal has always been a matter of debate as to how much it actually helped the United States during its time of need. Looking into when economic stability actually came back into realization, I don't think it was as much as a "superman situation" like most people wanted to believe. However, the fact that many throughout the nation thought that FDR would be their super hero drastically changed matters on its own. The Great Depression really was living up to its name. People everywhere were suffering, depressed, and downtrodden. The simple act of the government attempting to help was enough to raise spirits and make people *themselves* start to put the world back in motion again. While the New Deal did start to structure things differently to lead toward a change, it was the people that made it happen. However, the real factor that put the economy back in order was World War II. With wartime spending and patriotism on the rise, the economy boomed in light of disaster and people were volunteering their time and money to the cause of supporting their country which really lead to a type of stability.
As for the other countries suffering from the Great Depression, Great Britain really had a hard time. Their attempt to regain some economic value after World War I by converting back to the Gold Standard seemed like a good plan in theory but actually made their export prices higher for other countries who were having a hard time themselves. With this slight decrease in the amount of money coming from exports, Britain was already on a declining slope. However, once America was hit by the Great Depression, Britain began an economic free fall in which industrialized areas were devastated with unemployment doubling in a short span of time and wages were beginning to be slashed like Wal-Mart prices. Finally, after the nation began settling its differences with each other, a slow recovery began with a withdraw from the gold standard and a drop in interest rates to make Britain's exports more competitive in the world market. Sweden suffered just as Britain with severe unemployment and wage reduction. However, they responded by taking on a government make-over by embracing the Social Democratic Party. The Party offered a comprehensive program that greatly supported agriculture and wanted to implement extensive public works. The Party reached an agreement with the Farmer's Party in 1933 and the plan was a huge success which actually allowed Sweden to recover more quickly than most other countries.
Germany is an entirely different story. They were hit quite hard since America was one of the main contributors to the funds to rebuild the country. With America in a depression, that money stopped abruptly. The country felt abandoned because they were worse off than most before the Great Depression and not only suffered like most other countries from unemployment and wage problems but also had a country in mostly ruins. With this situation in place, the country's government took a turn for extremism. Hitler's Nazi Party took advantage of the malice toward the rest of the world and the confusion of the government during a time of severe economic crisis. Hitler rose to power, not exactly by popularity (he was actually never voted into his position) but by impressing the right people with his ferocity toward putting the country back into a place of high standing. With this cunning sneak attack by Hitler, Germany began to start the path that would result in World War II.
Posted on Sun, 14 Oct 2007 1:04 PM CDT by Brooke W.
  astin p.  says:
Sweden and Great Britian responded to the great depression like most other countries, the put up trade barriers and tarriffs. some in Brtitians government wanted wages cut to help support the use of what money there was. sweden and brtian instituted government work programs to help the economy and lower unemployment.
Germany was hit pretty hard by the depression because America could not longer loan germany money to rebuild. germany was still paying reparations to other countries from world war 1. germany did not have a strong stable government which allowed the nazi party to take control.
Posted on Sun, 14 Oct 2007 1:05 PM CDT by astin p.
  Lisette W.  says:
Whether or not the New Deal ended the Depression has been a subject of constant debate since that time. Although FDR's programs were god ones, and they did make steps to improve the economic situation in the country, it was probably only a small factor in the country eventually getting out of the Great Depression. I'm sure World War II did play a large role in this country's eventual climb out of depression as many jobs were created for men and women to build weapons and materials needed for war. Also, the men were needed to fight when the U.S. entered the war, which even created a need for women to work. For the first time, many families had dual incomes as the men were fighting, and the women were working at home. Once again, America was begininning to enjoy the prosperity it had enjoyed at the end of World War I, although possibly at the expense of the rest of the world where this was was fought.
Great Britain was hit hard by the Depression. They tried to combat the economic problems by converting back to the gold standard, but that didn't work and eventually made things worse. Just like in the US, unemployment rates quadrupled, and many people lost their jobs and their homes. Most of the Labour party in the cabinet resigned in 1931 rather than face the task of pulling their country out of depression. The new cabinet, mostly conservative, managed to fight its way through and eventually make a slow recovery Sweden, on the other hand did not suffer as drastically as the other countries in Europe. They did not have much trade with the United States, and therefore did not rely on money from the US to exist, however, they did suffer to some extent. Germany, on the other hand, suffered a great deal. The Germans owed a great deal of money to the American government because of the cost incurred during World War I. To pay this massive debt, the German government had borrowed funds from American banks. When these banks closed, they no longer could get the funds necessary, and at the same time could not pay back the United States. Unemployment was also very high in this country as well, especially since the country was still in ruins from the effects of the Great War. The German government, instead of coming up with a democratic solution to the problem turned to Hitler to come up with the answers. He responded by forming the Nazi party. Hitler's Nazi's were able to gain control of the government and forced everyone to follow their way of doing things. Hitler's rise to power, and his totalitarian regime eventually plunged Europe into another great conflict.
Posted on Sun, 14 Oct 2007 9:22 PM CDT by Lisette W.
  Melanie L.  says:
The New Deal was instrumental in ending the depression. The New Deal implemented various programs they were vital to helping the citizens to get back on their feet. It provided assistance to farmers, provided jobs for the millions of unemployed, and also put food on the table for those that were starving. The New Deal didn't necessarily save the country it just provided the citizens with some very much needed assistance. It was the drive and desire of the working class individuals that actually saved the country.
Different countries handled the depresson in different ways. Britain was the largest producer of ships. Their economy was dependant upon ship building. But during this time there was no one to buy the ships and this led to unemployment. The unemployment rate skyrocketed. Their government believed that the only way to solve this problem was to cut public spending and wait on natural recovery. Germany was devastated by the depression. They were still financially strapped because of the money they had to repay for starting World War I. Now with the U.S. in financial ruins they were no longer able go borrow money from the U.S.. Sweden was only minimally effected by the depression. They were virtually self sufficient and depended very little on outside trade.
Posted on Sun, 14 Oct 2007 9:51 PM CDT by Melanie L.
  Bessie J.  says:
The New Deal did not end the depression. It did not do everything that everyone hoped that it would do. It did change American history. It saved American democracy and gave American capitalism a new stimulus.

FDR did save the country. He helped get the country on the road to recovery. He put elements in place that enabled the country to survive and then thrive. TVA supplied affordable power for the Southeastern United States. He provided work relief for thousands of men under a military discipline.

Sweden suffered the least; it became the first country to fully recover from the depression. A reduction in taxes for the average wage earner gave him more money to spend. A raised minimum wage increased the ability of low-income people to spend money. The government increased investments in public works. Federal money was pumped into unemployment insurance, medical care and old age pensions.
Great Britain went to extraordinary lengths to maintain its exports and to keep the costs of manufacturing low, including wages. They tried to keep inflation down. Unemployment rose, but Britain maintained its unemployment insurance. The overall result kept Britain's economy from falling like the U.S. and Germany.
Germany suffered the most, businesses failed and unemployment rose--6 million people were unemployed. The United States ceased the loans to Germany. Germany ran out of money due to the reparations it was still paying the countries that they owed during World War I.
Posted on Sun, 14 Oct 2007 10:49 PM CDT by Bessie J.
  Cordelia G.  says:
The New Deal did not end the depression. Americans still endured tremendous economic hardship. The New Deal did put millions of Americans back to work, but many still remained unemployed. Billions of dollars were spent on new programs to improve the economy. Franklin Roosevelt brought hope to people in despair. In his push for reform, relief, and recovery, he may have very well prevented a revolution. The people could have revolted against the government at a time when the economic system seemed hopeless. FDR?s biggest contribution was restoring confidence into democracy. So I do believe that he saved the country.
Posted on Wed, 17 Oct 2007 2:46 AM CDT by Cordelia G.
  Adam N.  says:
The New Deal significantly helped to stop the downturn of the economy. Although it did not completely revive every aspect of the economy, it did what it was intended to do. I agree with Cordelia, that Roosevelt instilled a greater sense of hope in Americans for a better way of life and a better future. I think other countries such as Germany and Britain failed to repair the emotional impact caused by their poor economies. Roosevelt lifted up a nation with strategic plans, but also with a strategic attitude in assuring Americans that although they may not be making as much as they would like, they had a leader who would continue to fight for the survival of every American citizen.
Posted on Mon, 22 Oct 2007 9:15 PM CDT by Adam N.
  Amy C.  says:
I believe the New Deal did help end the Great Depression. The New Deal gave American?s hope for a brighter future and much needed jobs. Hope is a very powerful thing!
Sweden gave government assistance to its people, which aided in its quicker recovery.
Great Britain was hard headed much like the Hoover administration. They believed the economy would fix it self. This was just capitalism.
Germany and her people were devastated the most by the Great Depression. The United States cutoff the funds and they were left with no way to continue to rebuild. This gave Hitler the foot in the door he needed to take control of the country. Hitler too gave hope to a depressed people.
Posted on Wed, 24 Oct 2007 7:18 PM CDT by Amy C.
  Allison S.  says:
While the New Deal did not completely eliminate all of the problems that had piled up in the years of the Depression, it definitely did more for the American people and economy than Hoover's administration did. The programs created were in direct response to the crisis caused by the Depression, and it got the American economy rolling again. In a way, I think it is fair to say that FDR "saved" the country. He responded directly to the crisis as soon as he was elected to the Presidency. Because of his New Deal and the programs it created, the United States was given a chance to be prosperous again.
Other countries responded to the crisis in various ways. Sweden created a Democratic government whose citizens called for the government to spend public money to create jobs. Great Britain did little for its people. They were encouraged to pinch pennies and save resources. They got more sympathy from their royal family than the government.
Germany was affected by the Depression like many other countries worldwide. However, it would be Hitler's rise to power and call for rearmament that would essentially end the Depression. When Hitler began to rearm Germany, nations around the world followed suit, building up their navies and developing explosives. This gave business back to countries such as Chile and other South American countries, who provided the supplies for this rearmament through trade.
Posted on Sun, 4 Nov 2007 5:14 PM CST by Allison S.
  Lafonda B.  says:
I think that the New Deal help with the Great Depression at that time, but in the long run I think it crippled the country because people became dependent on the government. People saw some of the programs as away of life and not as a way to get their lives on track. Sweden did try to help it people by setting up programs. Germany and Great Britain didn't do much for their citizens.
Posted on Wed, 27 Feb 2008 12:16 PM CST by Lafonda B.

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