The Great Depression

• In 1929, the American stock market crashed - people realised some companies were doing badly and rushed to sell their shares. By October 1929, the selling was frantic and share prices dropped - they lost value because no one wanted to buy them during the panic
• In 1929, the USA stopped lending money abroad and asked for its loans to be paid back
• By 1930, nearly 2000 banks had collapsed as people rushed to withdraw savings
• 1933 - there were over 12 million people unemployed in the USA
• The Depression caused widespread poverty. In these circumstances, people were more likely to support extreme right-wing leaders, hoping they'd provide strong government. For example, Hitler was elected in Germany in 1933 - he wanted to defy the League of Nations and break the Treaty of Versailles
• Countries like Britain and France were also less willing to help the League by getting involved in resolving international conflicts. They wanted to concentrate on dealing with domestic problems like unemployment
• The economic downturn was also a factor in some political conflicts, e.g. the Manchurian crisis
• The Nazis were also a nationalist party. Nationalism is the belief that your own country's interests should be prioritised above all others. It's often popular in times of economic crises