The Great Depression France

1966 words 8 pages
The Start to the French Depression:

Another country that suffered just as much as the United Kingdom had was France. Causes of their downward spiral were due to an underdeveloped economy. France’s industry was far inferior to Great Britain’s, particularly in farming. Tourism was also a big part of France’s economy, and during this time, many individuals simply did not have the money to travel around the world. France, like the United Kingdom, also suffered to recover from World War I. While not as bad, France relied heavily on German reparations, to pay for reconstruction. Once reparations had ceased, the Depression in France took place. Starting in 1931, France did not recover from the Depression until the remainder of the decade. During
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French franc was devalued by 30%. In 1937,the first public budget of the
Front Populaire increased tax progressiveness but decreased average taxes, from 17.4 to 15.8% of GDP.
Inconsistent government policies also deepened the depression. Several governments sustained depressed industries by setting prices or organizing cartels, while forcing prices reductions in other markets; in 1935, the deflationary policy of Pierre Laval (who cut by 10 percent all public expenses and many prices) was inconsistent with the obligatory discounting of Treasury bills by the Bank of France (in order to finance the budget deficit without raising tax)
Moreover protection mainly caused more inequalities among industries

So what happened next:

Elections in 1932 brought to power conservative André Tardieu. He had campaigned one the threat of Communism. He formed a coalition government of conservatives and rightists. They opposed the New Deal style spending demanded by the left-wing parties for the unemployed and poor workers adversely affected by the Depression. The Tardieu Government was commotted to limit taxation, balance the budget and prevent inflation. It hoped to achieve revovery by replacing lost markets with increased trade with the country's colonies and restricting government spending. Tardieu Government wa also committed to the gold standard. His policies were in many wys similar to those of the Hoover Administration in the

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