How did Europe respond to the Great Depression?

GREAT BRITAIN

• Follows traditional orthodox economic theory....

• A neo-Mercantilist point of view

• Looks inward, avoid sforeign problems

• Balanced-budget, unemployed workers receive barely enough welfare to live

FRANCE

• Economic stagnation reflects continued political crisis of the 1930’s

• No stability in government, moderate republicans being zapped from all sides (Communists, Fascists, semi-Fascists, etc.)

• “Popular Front” rules from 1936-’37, tries social reform using the U.S.A “New Deal” as their model

• Wild swings in the economy

• On the verge of civil war

SCANDINAVIAN COUNTRIES –Norway, Sweden, Denmark

Social Democrats advocate-Cooperative Community Action

Lots of government spending, high-taxes, large bureaucracy

This “Welfare System” offers a middle-way between Capitalism and the rising cruel world of Fascism and Communism in practice....

Most successful response of ANY region in Europe to the cirse

GERMANY

• American loans to help rebuild German economy stop

• Unemployment rate reaches 32% in 1932!

• Anti-capitalist political ideologies swell in popularity (Nazis, Communists)

• Many think the old ideas of liberty

individual rights/responsibilitieselected governments economic freedom

are outmoded....