In 1929, The great world depression
started with the wall Street crisis, had remarkable impact on the Economy and
political order of the world. Economic impact led to the problem of poverty and
unemployment.
Many of masses economically they became
unemployed as the industries stopped manufacturing of the goods. This also lead
to Financial deficit to governments of Germany, U.S.A, France and England. To
make better this situation british government had to give up the gold standard
and to adopt the policy of devaluation of sterling in 1931.Later All the
countries of Europe adopted policy of protection and imperial preference. In
American policy of New deal was adopted to face the new economic challenges.
The problems which was generated by the
economic crisis of 1929, was not able to solve by the democracatic form governments,
so in some of the Europeancountries dictatorial rule emerged.
In the political sphere most important
change was, the labour government fall in England. People started slogans
against capitalism and supporting socialism. Because of this crisis a kind of
very practical nationalism emerged in Europe which lastly resulted in both
political cum economic rivalry which was the most important cause of the second
world war in 1939.