Toward the Great Depression and Confronting it in the Democracies
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| What were the three factors that brought about the severity and extended length of the Great Depression? | Financial problems arising from the war and peace settlement, a crisis in the distribution and production of goods, and weak economic leadership.
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| Why was France so determined to receive war reparations? | It had already been forced to do so twice over in 1815 and in 1871 after losing in a war.
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| Why were governments afraid of importing in goods from abroad? | If it imported too much, it may have difficulty in meeting both the costs of the goods and the expenses of debt.
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| What happened as a result of the Wall Street Crash of October 1929? | Many banks in America failed because they had loaned people money which was then invested in the stock market, resulting in a lack of American capital to invest in Europe.
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| The Hoover moratorium on German reparations payments was the prelude to what? | The end of reparations at the Lausanne Conference of 1932.
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| How did better agricultural methods both benefit and hurt Europe? | It made prices of grain much cheaper, but as a result, farmers earned lower wages.
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| How were farm problems especially pressing in Eastern Europe? | Large estates were broken up into small peasant holdings in the successor states, and insufficient incomes and tariff walls led to their failure.
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| Though the Depression did not mean complete unemployment, did workers improve their standard of living or move up the ranks as quickly as before? | No.
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| In his book General Theory of Employment, Interest, and Money, what did John Maynard Keynes advocate? | Active government intervention in the economy and increased government spending during times of economic downturn.
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| Instead of leaving office with his cabinet after issues of tackling unemployment, what did Ramsay MacDonald do? | He formed a coalition ministry, the National Government.
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| What were the three things the National Government did to attack the depression? | They raised taxes and cut benefits, brought Britain off the gold standard, and placed a 10% tariff on all imports from foreign countries.
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| What were the results of the National Government's policies? | Britain avoided a banking crisis, industrial production expanded beyond the level in 1929, and there was a private housing boom.
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| What did Sir Oswald Mosley call for? | A program of direct action through a new corporate structure for the economy.
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| What did the French government do to combat the depression? | The lowered wages and raised tariffs to protect French agriculture.
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| What were Action Fracaise and Croix de Feu and what did they believe? | They were two major right-wing groups who wanted monarchy or military rule, hated all forms of socialism, and valued the glory of France above all political parties.
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| What was the Stavisky affair? | It was where the government was accused of covering up the investigation of a gangster with ties to the government involved in a bond scheme.
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| February 6, 1934 | Right-wing groups demonstrate in Paris and attempt to storm the Chamber of Deputies, resulting in 14 deaths and several injuries.
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| How were socialists and communists in France able to come together to form the Popular Front? | Stalin's fears of Hitler allowed communist parties to cooperate with socialist parties.
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| When the Popular Front came to power, what did Leon Blum do to reform the French labor force? | He raised wages, allowed for collective bargaining, established the forty-hour work week, and allowed for two weeks of paid vacations for all workers.
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| Why did Blum stop his trend of reform? | French bankers and businesspeople, conservative in nature, exerted enough influence on the ministry to get him to stop.
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