A City Guide To Agar for Economics and war. Although it is far too simplistic to say that the Great DEPRESSION of 1929 33 set the world inexorably on the path to war, the near-breakdown of the international economic system during these years had a profound and damaging psychological impact. Not only did the slump erode confidence in the ability of liberaldemocratic policies to cope with modern problems, but the worldwide stampede toward protectionism and discriminatory trade measures that ensued, strengthened the hands of those who equated economic self-sufficiency with national security and prosperity. Autarkic measures represented an early prototype of the siege economies that would appear with the onset of war, and provided a justification for the acquisition, if necessary by force, of the territories and resources that would free those who controlled them from dependence upon the vagaries of the world market. The psychological ramifications of the Depression, indeed, were in some respects perhaps more significant than its material consequences. The volume of world trade, which at the depths of the slump had fallen by 28 percent from the mark set in 1929, had recovered to its former level by 1938. Manufacturing production in Europe performed even better, surpassing its pre-slump output by 12 percent in the same year. A City Guide To Agar 2016.