Political effects

The Great Depression discredited liberal democracy and free-market capitalism in many countries. In Germany, the Depression destroyed the moderate Weimar Republic and propelled the Nazis from a fringe party to government. In Japan, economic collapse strengthened militarist factions. In the United States, FDR's New Deal expanded the role of government in the economy. Across the world, the apparent failure of capitalism made communism more attractive while also making fascism more attractive as a third way. The Depression cleared the political ground for the totalitarian regimes that would start WWII.