<P> There is little agreement on what caused the Great Depression, and the topic has become highly politicized . At the time the great majority of economists around the world recommended the "orthodox" solution of cutting government spending and raising taxes . However, British economist John Maynard Keynes advocated large - scale government deficit spending to make up for the failure of private investment . No major nation adopted his policies in the 1930s . </P> <Ul> <Li> Europe as a whole was badly hit, in both rural and industrial areas . Democracy was discredited and the left often tried a coalition arrangement between Communists and Socialists, who previously had been harsh enemies . Right wing movements sprang up, often following Italy's fascist mode . </Li> <Li> As the Great Depression worsened, Labour lost power in Britain and a coalition government dominated by conservatives came to power in 1931, and remained in power until 1945 . There were no programs in Britain comparable to the New Deal . </Li> <Li> In France, the "Popular Front" government of Socialists with some Communist support, was in power 1936--1938 . It launched major programs favoring labor and the working class, but engendered stiff opposition . </Li> <Li> Germany during the Weimar Republic had fully recovered and was prosperous in the late 1920s . The Great Depression hit in 1929 and was severe . The political system descended into violence and the Nazis under Hitler came to power through elections in early 1933 . Economic recovery was pursued through autarky, pressure on economic partners, wage controls, price controls, and spending programs such as public works and, especially, military spending . </Li> <Li> Spain saw mounting political crises that led in 1936--39 to civil war . </Li> <Li> In Benito Mussolini's Italy, the economic controls of his corporate state were tightened . The economy was never prosperous . </Li> <Li> The Soviet Union was mostly isolated from the world trading system during the 1930s . To force peasants into industrial jobs in the cities, food was stripped from rural areas, and millions died of starvation . </Li> </Ul> <Li> Europe as a whole was badly hit, in both rural and industrial areas . Democracy was discredited and the left often tried a coalition arrangement between Communists and Socialists, who previously had been harsh enemies . Right wing movements sprang up, often following Italy's fascist mode . </Li> <Li> As the Great Depression worsened, Labour lost power in Britain and a coalition government dominated by conservatives came to power in 1931, and remained in power until 1945 . There were no programs in Britain comparable to the New Deal . </Li>

Impacts of the great depression on the united states