Global Economic Crisis: The Great Depression
Abigail Young
6 min read
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#European History Study Guide: Post-WWI Economic Turmoil & Rise of Extremism
Welcome! This guide is designed to help you ace your exam by focusing on the key economic and political shifts after World War I. Let's break it down and get you feeling confident. đź’Ş
#1. The Economic Fallout of WWI
#1.1 Devastation and Debt
** WWI's Impact: Great Britain, France, Russia, Belgium, and Germany suffered the most significant economic damage.
** War of Attrition: The conflict became a war of attrition, leading to massive destruction and unprecedented casualties.
** Expensive Warfare: New weaponry and fighting styles resulted in immense costs, pushing nations into deep debt.
** The scale of destruction in WWI was unlike any previous European conflict.
#1.2 The Debt Cycle
** US Loans: The United States provided loans to European allies during the war, expecting repayment afterward.
** Treaty of Versailles: Germany was burdened with massive reparations (132 billion German marks, ~$33 billion), exacerbating their debt.
** Hyperinflation: Germany's attempt to print money to cover debts led to hyperinflation, severely destabilizing their economy.
#1.3 The Dawes Plan
** US Intervention: The Dawes Plan, orchestrated by Charles Dawes, aimed to stabilize the situation.
** Plan Mechanics: The US loaned money to Germany, enabling them to pay reparations to other European nations, who could then repay their debts to the US.
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