- The Great Depression: After the 1929 stock market crash, the global economy tanked, leading to a decade-long economic downturn. Europe was severely affected, with countries experiencing high unemployment, factory closures, and bank failures.
- Trade Protectionism: Countries increased tariffs and trade barriers to protect their struggling industries, reducing international trade and slowing economic recovery.
- Deflationary Policies: Governments implemented deflationary policies to reduce inflation, leading to further economic contraction and increased social hardship.
Political Chaos:
- Rise of Dictators: The economic crisis created political instability, allowing authoritarian leaders to gain power. Adolf Hitler's Nazi Party took over Germany in 1933, Benito Mussolini ruled Italy since 1922, and Joseph Stalin consolidated his power in the Soviet Union.
- Weakening of Democratic Systems: The challenges faced by democratic governments in dealing with the crisis eroded public trust in democracy, leading to the rise of authoritarian movements.
- International Tensions: The economic and political turmoil led to increased tensions between countries, contributing to the outbreak of World War II in 1939.