The following are external events that affected Singapore-The Great Depression and WW1. Which in your opinion had a greater impact on Singapore? Explain your answer. (8)
Both the Great Depression and WW1 affected Singapore greatly, however the Great Depression had a greater impact on Singapore.
WW1 was a war between two opposing powers, the Central Powers and the Allies in Europe. Although it was originally in Europe, it involved over thirty countries and affected many others, including countries not in Europe. There was a higher demand for food and thus prices soared. People in Singapore were afraid that the impact might hit them as Singapore was a colony under the British, therefore, hey rushed to buy and stock up food and supplies. This was done out of fear that there would be a decrease in food and supplies. The ...view middle of the document...
The problem was solved later in the year when it was destroyed.
From this two issues, we are able to learn that Singapore was affected by the WW1 but managed to resolved the problems quickly, which led to Singapore’s trade volumes being affected for a minor period of time.
The Great Depression was a period of worldwide economic slowdown that impacted many countries, including Singapore. It began with the stock market crash in the US in 1929, which spread to the rest of the world.
During the 1920s, also known as the Roaring 20s, there was a economic boom and many people rushed to buy stocks, thinking that it was a good way to earn more money and at the same time believing that it would not drop. However, the stocks soon began to fall and people hurried to sell their shares, causing the stock prices to drop drastically. Many who borrow loans from banks could not pay back the loans and banks started to lose money as well.
In Singapore, the people were greatly affected as Singapore largely depended on trade. There was a less demand for goods such as tin and rubber and therefore there was less trade and the trade volume in Singapore decreased. It was only in 1934, that the situation started to improve after USA slowly recovered.
In my opinion, the Great Depression affected Singapore more as in total, it was a span of 5 years that the problem persisted while for the WW1, it only lasted about a year and Singapore managed to recover quickly. In WW1, the problems were mainly restricted to a few countries, those that depended on trade volume as well. In the Great Depression, it affected most of the world as there was a snowball effect when the was an increasing loss of money. This thus affected Singapore in terms of its trade more.
To conclude, the Great Depression affected Singapore more than WW1 did.