The Great Depression was when the stock markets crashed in America, which caused money problems all over the world. America could no longer loan Germany money for reparations, and they even wanted the money back. It was at this time that countries all over the world faced economic crisis, and hatred started form again between countries. Unemployment was caused all over the world, and countries solved this problem by creating large armies. This gave Germany an excuse to break the Treaty of Versailles as they also created large armies. One of the countries it had a big effect on was Japan. At this time, Japan had the problems of starvation, unemployment and lack of resources in their country, and to solve these problems, they invaded Manchuria. The League of Nations should have stopped this, but they didn't. Another thing the Great Depression did was send America into isolation. They didn't want to get involved with anyone else, as they believed that if they stayed in isolation, then they would not be dragged into another European war. The Great Depression was a cause of the Second World War because it was the Great Depression that damaged the economy of many different countries in Europe, and it was the Great Depression, that made America go into isolation, and to stay away from the problems in Europe, and allow the most devastating war in history to take place.