World Depression

• How far did the depression make the work of the League difficult?

  • In October 1929, the Wall Street Crash marked the beginning of a worldwide economic recession.
  • There was a dramatic contraction in production and trade over the next three years and a steep rise in unemployment.
• Effects of the world depression:

  1. Prevented economic sanctions; many nations feared loss of trade partners.
  2. Brought extremists to power in Germany.
  3. Encouraged militarism in Japan.
  4. Put pressure on governments to cut expenditure and balance the books.
  5. Put pressure on countries to find new markets.