What caused the Great Depression, and how did it change history? How did the various Western democracies react and respond differently to it? Explain why their reactions and responses were so varied

Answer: The Great Depression was a global phenomenon, unlike previous economic downturns which generally were confined to a handful of nations or specific regions. Africa, Asia, Australia, Europe, and North and South America all suffered from the economic collapse. International trade fell 30 percent as nations tried to protect their industries by raising tariffs on imported goods. "Beggar-thy-neighbor" trade policies were a major reason why the Depression persisted as long as it did. By 1932, an estimated 30 million people were unemployed around the world.

Explanation: Government officials were also afraid that if they gave too much, people would become comfortable on the dole and stop trying to find work elsewhere. A third concern was that dole payments should not exceed the income of the country's working - yet impoverished - fishers. "The tragedy of Newfoundland," Commissioner Thomas Lodge wrote in 1939, "is not that the scale of able-bodied relief is so low. It is that the scale differs so little from the standard of living enjoyed by the workers who manage to retain complete independence."