Question

What political and economic challenges did the leading democracies face in the 1920s and 1930s?

Answer 1

These countries have many problem with high unemployment rate, short wages and salaries. They have weak markets, low level purchasing power and they suffer capital deficiency .

Answer 2

Leading European democracies in addition to the US were challenged by crippled economies and devastated landscapes from World War I. Governments were wanting a return to more isolation and policies which favored their own countries. In the case of Germany, they were struggling to reestablish nationalism and were unable to defend themselves as a country. As a result many people in those countries turned to alternate forms of economy and government to create solid nations once again. All countries saw a rise in socialist thinking and some countries began to move toward socialist ideology. In others especially, Italy and Germany a move toward fascism took place which put nationalism at the forefront and a build up of capitalism to secure their economic place in the world.