Presentation on theme: "The World Confronts the Crisis"— Presentation transcript:
1 The World Confronts the Crisis The Great DepressionThe World Confronts the Crisis
2 The Great Depression Economic Downturn A Global Depression Great Depression—long business slump of 1930sMarked by bank failures, loss of savings, unemploymentA Global DepressionAmerican economic problems create problems in other countriesAmerican investors withdrew in EuropePlaced high tariff on imported goods-> backfires why?World trade falls sharply- 65% and unemployment rates skyrocketEffects Throughout the WorldGermany and Austria suffer greatly, why? Who are they borrowing money from?Asia suffers- depend on selling exports overseasLatin America suffers- demand for sugar, beef, and copper drops so does the price
3 The World Confronts the Crisis Britain Takes Steps to Improve Its EconomyBritish voters elect coalition government, avoids political extremesPasses high protective tariffs, increased taxes, regulates currencyGovernment brings about slow, steady economic recoveryBy 1937 unemployment had been cut in halfPreserves democracy by avoiding political extremesFrance Responds to Economic CrisisFrance has more self-sufficient economy, heavily agricultural less dependent on foreign tradePreserves democracy in spite of economic troublesSocialist Governments Find SolutionsPublic works programs help Scandinavian countries recover- DEMOCRACIES REMAIN INTACTSweden, Denmark, Norway govt. sponsored public works programs
4 Recovery in the United States Franklin D. Roosevelt—American president during DepressionFDR Inaugural AddressNew Deal—Roosevelt’s program of government reform to improve economyLarge amounts of money spent on welfare and relief programs
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