1. Worldwide Depression

2. Postwar Europe The Great War left every major European country nearly bankrupt Most European nations had democratic governments Coalition Government: temporary alliance of several parties These governments were weak and were not able to develop strong leadership

3. The Weimar Republic Germany’s new democratic government Millions of Germans blamed this government for the country’s defeat and humiliation Germany faced economic problems- inflation America loaned $200 million from banks to stabilize German currency This plan slowed inflation and helped German factories produce as much as they were before the war

4. Financial Collapse America’s economy recovered quickly after the war By the 1920’s, the economy was booming from big business U.S. industry was boosted by the war During the 1920’s, there was massive spending and big investments in the stock market BUT….

5. Financial Collapse The wealth was not evenly distributed 60% of all American families earned less than $2000 a year which caused them not to be able to buy the goods that America was producing too much of Farmers, black population, recent immigrants, and workers in old industries did not prosper due to low wages, new technology, and being laid off Many farmers could not pay off bank loans which weakened banks and forced some to close So…..

6. The Stock Market Crashes Between the 19 th and the 24 th of October, millions of shares were sold Tuesday October 29 th 16 million shares sold No buyers found Ticker tape machines break due to pressure Many investors are ruined

8. Overproduction and Underlying Poverty Stocks of unsold goods Demand fallsProfits fall People start to sell shares Panic!CRASH!!!

9. Countries affected around the world Because of war debts and dependence on American loans and investments, Germany and Austria were hit hard Congress placed high tariffs on imported goods In Asia, felt the effects as the value of exports fell

11. Confronting the Crisis Britain Passed high protective tariffs Increased taxes Regulated the currency Preserved democracy

12. Confronting the Crisis France Moderates, socialists, and communists formed a coalition called the Popular Front The Popular Front passed a series of reforms to help the workers Preserved democratic government

13. Confronting the Crisis United States Franklin D. Roosevelt- President during the Great Depression who sought to restore American’s faith in their nation Created the New Deal Reform program that helped create jobs for the unemployed Created Welfare and relief programs Regulations were imposed to reform the stock market and banking system

14. Activity Directions: On the back of your notes in the spaces provided, answer these questions about each picture and yes it will be turned in for a grade : 1.What is going on in the picture? 2.What type of message is it sending?

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