WH - Chapter 31.2 - Years Of Crisis - Section 2 - A Worldwide Depression

or temporary alliance of several parties, was needed to form a parliamentary majority.

Germany's new democratic government was set up in 1919. It was named after the city where the national assembly met.

A long business slump evidenced by decreased factory production, massive unemployment, the stock market crash, businesses failures, and the closing of banks, farmers losing their farms, and people losing their savings in banks - a total collapse of the US economy.

first president elected after the Depression had begun.

A large economic program enacted by the Roosevelt administration that included large public works projects which helped to provide jobs for the unemployed. New government agencies gave financial help to businesses and farms. Large amounts of public money were spent on welfare and relief programs. Roosevelt and his advisers believed that government spending would create jobs and start a recovery. Regulations were imposed to reform the stock market and the banking system.

Coalition governments were weak and unstable that produced frequent changes in government which made it hard for democratic countries to develop strong leadership and move toward long-term goals. The weaknesses of a coalition government became a major problem in times of crisis. Voters in several countries were then willing to sacrifice democratic government for strong authoritarian leadership.

Only the United States and Japan came out of the war in better financial shape than before. The Great War left every major European country nearly bankrupt. In additionEurope's domination in world affairs declined after the war.

Uneven distribution of wealth, overproduction by business and agriculture, and the fact that many Americans were buying less.

Because of war debts and dependence on American loans and investments Germany and Austria were particularly hard hit. In 1931, Austria's largest bank failed. In Asia, both farmers and urban workers suffered as the value of exports fell by half between 1929 and 1931. The crash was felt heavily in Latin America as well. As European and U.S. demand for such Latin American products as sugar, beef, and copper dropped, prices collapsed.

The Depression confronted democracies with a serious challenge to their economic and political systems. Each country met the crisis in its own way.