what caused the economic depression after world war 1
Depression of 1920–21 There was a brief post–World War I recession immediately following the end of the war which lasted for 2 years, complicating the absorption of millions of veterans into the economy. The economy started to grow, though it had not yet completed all the adjustments in shifting from a wartime to a peacetime economy. Factors identified as contributing to the downturn include: returning troops which created a surge in the civilian labor force and problems in absorbing the veterans, a decline in labor union strife, changes in fiscal and monetary policy, and changes in price expectations.
Great Depression in the United States The Depression caused major political changes in America. Three years into the depression, President Herbert Hoover, widely blamed for not doing enough to combat the crisis, lost the election of 1932 to Franklin Delano Roosevelt in a landslide. Roosevelt's economic recovery plan, the New Deal, instituted unprecedented programs for relief, recovery and reform, and brought about a major realignment of American politics.