HIST 106 Lecture Notes - Lecture 15: Reflation, Dawes Plan, Planned Economy

• School: Simon Fraser University
• Department: History
• Course: HIST 106
• Professor: Paul Garfinkel

Document Summary

The difference in the 1930"s was that the depression was on a much larger scale. This created long term unemployment, and a long term decline in the business cycle. Conventionally the cycle recovered in about a year, or maybe two. Once prices were lowered there was more buying and recovery happened. German 1932 40% unemployment (had been 6. 3 % in 1928) Excluding the ussr the world sees a 32% drop in industrial output. Many states, like the czech republic, respond with protectionist tariffs. Individual nations flee from liberal and capitalist economic ideas to stop the threat of international trade. Us credit: american investors were taking money out of germany because it was not profitable and putting it into the us stock market instead. In essence europe was financially dependent on the us and the situation was made worse because the us was not buying any european goods.