1914: Outbreak of the First World War; America did not join until 1917
Countries borrowed money from America to fund their armies
1918: Germany and its allies lost the war
The losing countries were forced to pay huge reparations
America loaned money to other countries to help them rebuild
1929: The Wall Street Crash; the American economy collapsed
American industries went bankrupt and the people could not afford to buy luxuries
Industries all over the world lost a valuable market for trade and their profits dropped; they had to fire workers; people became more and more desperate
People lost faith in their governments and looked for strong leaders who could help their countries recover
Political parties with extreme ideas came to power, promising to make their countries strong agian
Countries were too busy dealing with their own problems to support the League of Nations