12: The Great Depression Pt. 2 - The Depression
History of the Second World War
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The Depression and the American Economy
The American economy, for most of the 1930s, was going through a catastrophic depression. It was a depression that was not just contained within their borders, and it would instead spread throughout the entire world. The easiest way for a government to fix the problem of simply not having enough liquid assets would be to devalue their currency. There were however two problems involved with devaluation. Just because a nation's exports were cheaper did not mean there was more demand for those goods. For many governments, inflation was a dirty word, as it had been so damaging to the economies of Europe and others in the world during the 1920s. However, there were benefits to inflation, which some nations would take
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