2 Post WWIFollowing the War, EVERY major European country was left nearly bankrupt.Only 2 countries came out prosperous: The US and Japan. WHY?European countries got loans from the US.Governments changed from Empires to Democracies- difficult change- Why?Discuss the implications.
3 Weimar Republic- Germany 1919- was organized.Weak democratic traditionBlamed for WWI b/c they signed the Treaty of Versailles. Were they really at fault for WWI?Large reparations print more$INFLATION
4 InflationThe government was printing more money to pay debt that was not worth anything.Example: in 1918 a loaf of bread cost less than a mark (German dollar)1922- it cost 160 Marks, and 200 BILLION by 1923.People took wheelbarrows of $ to buy food.
6 Kids stacking money-Money was worthless. People burned it for heat.
7 The Great DepressionThe World’s economy was dependent on the US economic prosperity.1920’s- Roaring 20’s- US producing ½ of worlds industrial goods.Wall Street in NY financial capital of the world.Booming US Economy led to High stock prices
8 Stock Market Crashes.Middle- income Americans bought stocks on margin--- they paid a small percentage of a stock’s price as a down payment and borrowed the rest from a stockbroker.OK- if stocks rise, but if they fall…Prices plunged on Tuesday, October 29th- “Black Tuesday”16 Million stocks were sold—and the market collapsed.
9 Effects Factory production cut in half 1000’s of businesses failed Banks closed9 million people lost all of the $ in the savingsMany farmers lost their landBy 1933, ¼ of all Americans had no jobs.
14 A Global DepressionGermany and Austria hit hard because of their dependence on American loansJapanese economy also slumpedFell heavily on Latin AmericaHit Britain severely- passed protective tariffs, increased taxes, and regulated the currency, lowered interest rates to encourage industrial growth.—Slow steady recovery.FDR- the New Deal-