1. Anticipatory Set Describe the following questions with your neighbor 1.What is something that you or someone you know collects? (stamps, baseball cards, etc..) 2.What makes those items valuable? 3.Could the same be applied to money? 4.What happens if there is too much money printed?

3. Inflation Germany has huge war expenses Gov’t spends more than it takes in Ger prints more money Value of money goes down Prices go up Gov’t prints more money Cycle continues Economy is in danger of collapsing

4. Postwar Europe –New democracies did not last No experience with democracy Coalition gov’t: different parties did not always agree –Weimar Republic has trouble Ger ppl unhappy with the Treaty of Versailles Inflation is stopped by Dawes Plan –US banks loaned GER $200 mil –Stabilizes Ger economy Section 2 A Worldwide Depression Coalition gov’t: temporary alliance of several parties Party: group of people with same political ideas Inflation: value of money goes down & price of goods goes up Stabilize: to make stable, not shaky

5. Great Depression –Caused by Stock Market Crash Stocks were sold for more than they were worth –US economy falls & spreads to world Soaring stock prices Uneven distribution of wealth Surplus of agricultural products Banks and investors took their $ back from Europe –Roosevelt’s New Deal fights Depression Large public works projects helped to provide jobs Stocks: ownership of a company Distribution of wealth: how wealth is spread between rich and poor Surplus: extra Public works projects: jobs created by the gov’t

6. A Worldwide Depression In groups of 2-3 use book/notes to state REASONS for the following developments 1.In new postwar democracies, there were frequent changes in gov’t 2.In Ger, the Weimer Republic was weak from the start 3.Postwar Ger suffered from severe economic inflation 4.The US had a flawed economy 5.October 29, 1929 the US stock market crashed 6.A long depression followed the crash in the US 7.Collapse of the US economy affected countries worldwide. 8.In Brit, the National Government rescued the economy 9.In France, the Popular Front was formed as a coalition gov’t 10.Socialist gov’ts in Scandinavian countries dealt with the economic crisis successfully

7. A Worldwide Depression 1.In new postwar democracies, there were frequent changes in gov’t Had little experience with representative gov’t; having many political parties made it difficult to reach agreements in gov’t 2.In Ger, the Weimer Republic was weak from the start Lacked a strong democratic tradition; many political parties; ppl blamed Weimer Republic for defeat & Treaty of Versailles 3.Postwar Ger suffered from severe economic inflation Gov’t printed $ for war expenses & reparations; devalued money 4.The US had a flawed economy Uneven distribution of wealth, overproduction of goods and agriculture lessened demand for consumer goods 5.October 29, 1929 the US stock market crashed Investors believed stock prices would drop so they tried to sell high-priced stocks they had bought on margin but no one wanted to buy

8. A Worldwide Depression 6.A long depression followed the crash in the US Unemployment rates rose as production, prices, & wages fell; businesses & banks closed; savings and farms were lost 7.Collapse of the US economy affected countries worldwide. Countries had war debts and depended on US for loans and investments; worried US banks would demand loan repayments; US investors pulled their $ out of Europe; US market for imported goods fell; high tariffs decreased world trade and market demand 8.In Brit, the National Government rescued the economy High protective tariffs, increased taxes, regulated currency, lowered interest rates to encourage industrial growth 9.In France, the Popular Front was formed as a coalition gov’t Economic crisis in France led to political instability & leaders feared growth of antidemocratic forces 10.Socialist gov’ts in Scandinavian countries dealt with the economic crisis successfully Tradition of cooperative community action & gov’t sponsored public works programs kept ppl employed and producing; gave $ to those who needed it

9. Political Cartoon Symbolism –Cartoonists use simple objects, or symbols, to stand for larger concepts or ideas Exaggeration –Sometimes cartoonists overdo, or exaggerate, the physical characteristics of people or things in order to make a point Labeling –Cartoonists often label objects or people to make it clear exactly what they stand for. Analogy –An analogy is a comparison between two unlike things that share some characteristics. By comparing a complex issue or situation with a more familiar one, cartoonists can help their readers see it in a different Irony –Irony is the difference between the ways things are and the way things should be, or the way things are expected to be. Cartoonists often use irony to express their opinion on an issue.

14. Worldwide Depression Political Cartoon Draw a political cartoon based on the Worldwide Depression. It should include a country besides the US and cause and/or effect of Worldwide Depression Be sure that your political cartoon includes: –Symbolism –Exaggeration –Labeling –Analogy –Irony Share your cartoon with your classmates and see if they can guess what it is about.