Depression and the Rise of Fascism. Measurable indicators of economic change.

Depression and the Rise of Fascism
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Introduction
The Great Depression was a worldwide economic downturn that lasted for ten years. It began in 1929 and lasted until 1939. It was the longest and the most severe depression ever experienced by the industrialized western world, it sparked essential changes in the economic institutions, macroeconomic policies and in the economic theories. It is important to note that even though the Great Depression originated from the United States, its effects such as severe unemployment and acute deflation were felt by almost every country in the world. This paper discusses the causes of the Great Depression, how it affects European economies, the circumstances that lead to fascism and the effects of fascist sentiments.
There are several factors that cause the Great Depression. First, it was after the stock market crash of 1929 that American started realizing that the halcyon days were over and it was too late to react. Before this time the United States had enjoyed a tremendous economic growth because most the countries who took part in the First World War were purchasing their good from the United States (Aldcroft & Morewood, 2012). It is also important to mention that the economic situation was too good that every American wanted to participate in the stock market. As new investors participated flooded in the stoke market the market turned into a bubble and the investors turned from investing on the merits of a corporation and began betting on the continued rise in the market. Policies such as raising the cost of credit were implemented and these affected economic activities, business confidence drained and banks were unable to provide credit. All these factors led to the economic slowdown both in the United States and other parts of the world.
Additionally, the deepening depression and the financial crises also facilitated the great economic slowdown. Most of the countries were already experiencing the depression by the middle of 1930. Regardless of the intensity of the initial downturn, the financial crises deteriorated throughout 1929 and 1930. This caused the incomes to fall and both the domestic budgets and external accounts became unbalanced (Aldcroft & Morewood, 2012). To make the matter worse, the government implemented deflationary policies which made the matter worse. Additionally, the failure of the creditor countries such as the United States and France to provide accommodating finance to overpower and overwhelm the impacts of depression worsened the economic situation in Europe.
The gold standard also promoted the Great Depression. The Federal Reserve facilitated and also allowed enormous declines in the American money supply mainly because the institution was aimed at preserving the gold standard (Kindleberger, 2015). Under the gold standard, every country was focused on setting the value of its currency and also ensured that appropriate monetary actions were implemented so that the fixed price was defended. The gold standard was a major factor is transmitting the American economic decline to other countries from different parts of the world.
The 1930’s depression affected the European economies in different ways. The...