Why were European economies hurting during the Depression?
The Great Depression, a period of time lasting from 1929 to 1939, drastically affected the United States and created ripples through all world economies. European economies already hurting from economic problems prior to and after World War I were magnified after the 1929 crash of the U.S. economy.Increased Production During the 1920sAdvancements in mechanized equipment and access to electricity lead to increases in crop and manufacturing production, which created price declines.HyperinflationEuropean countries needing to pay for war expenses printed additional money, creating hyperinflation during and after World War I and during the depression. This devalued personal wealth and created economic instability.Lack of U.S. Investment and War DebtsAfter World War I, American investments were used to rebuild European infrastructures and industries. When Wall Street collapsed, investments ended. Germany was no longer able to pay reparations to European Allies dependent upon those payments.C
