World Wide Depression 1930’s- through early 1940’s

s A) European nations and resources drained because of WWI

B) Japan and U.S. actually financially better off due to expansion of trade and not having battlefields on the homeland B) Japan and U.S. actually financially better off due to expansion of trade and not having battlefields on the homeland European European Debts to U.S After WWI

2. U.S. was going through Roaring Twenties Jazz Age, Prohibition, Art, and Music Jazz Age, Prohibition, Art, and Music

3. Weak Germany A) Germany could not pay reparations A) Germany could not pay reparations B) Weimar Republic in Germany faced inflation because of overprinting German money B) Weimar Republic in Germany faced inflation because of overprinting German money

A) Germany could not pay reparations A) Germany could not pay reparations B) Weimar Republic in Germany faced inflation because of overprinting German money

C) So many new political parties make effective government difficult

4. Europe in 1920’s By end of 1920s, European economies were rebounding, but only with the aid of the American Economy… which was dangerous By end of 1920s, European economies were rebounding, but only with the aid of the American Economy… which was dangerous

Why did the world experience depression in the 1930s?

5. Causes of worldwide depression A) German reparations (payments of guilt) B) Expansion of production capacities and dominance of the United States in the global economy

C) High protective tariffs (tax on goods) D) Excessive expansion of credit (buying stocks on margin) E) Stock Market Crash (1929)

C) High protective tariffs (tax on goods) D) Excessive expansion of credit (buying stocks on margin) E) Stock Market Crash (1929) Stock Market Bubble about To Burst

6. Three problems with U.S. Economy A) Uneven distribution of wealth (rich have most of money B) Overproduction by business and agriculture

Farms and factories overproduced beyond the demand. II. Overproduction / Reduction in Purchasing People had little or no money to spend. Demand for goods fell. Businesses cut production Workers suffered from wage cuts and lay offs.

C) Lessening demand for consumer goods (Taxes on Imports and Exports) D) Black Tuesday-April 29 (1929) WallStreet plunged and the Stock Market crashed (over 16 millions stocks were sold)

C) Lessening demand for consumer goods (Taxes on Imports and Exports) C) Lessening demand for consumer goods (Taxes on Imports and Exports) D) Black Tuesday-April 29 (1929) WallStreet plunged and the Stock Market crashed (over 16 millions stocks were sold)

SEEDS OF TROUBLE By the late 1920s, problems with the economy emerged By the late 1920s, problems with the economy emerged Speculation: Too many Americans were engaged in speculation – buying stocks & bonds hoping for a quick profit Speculation: Too many Americans were engaged in speculation – buying stocks & bonds hoping for a quick profit E. Margin: Americans were buying “on margin” – paying a small percentage of a stock’s price as a down payment and borrowing the rest The Stock Market’s bubble was about to break

Depression ¼ of All Americans lose their jobs ¼ of All Americans lose their jobs 9 million people lose all bank account money 9 million people lose all bank account money Placed high protective tariffs- created chain reaction-hurts Germany, Austria, Japan, Latin America, Britain, France Placed high protective tariffs- created chain reaction-hurts Germany, Austria, Japan, Latin America, Britain, France

What political changes resulted from the worldwide depression 7. Impact of world depression A) High unemployment in industrial countries B) Bank failures and collapse of credit

¼ of workers without Jobs A) High unemployment in industrial countries B) Bank failures and collapse of credit

Lose all Money in Banks A) High unemployment in industrial countries B) Bank failures and collapse of credit

A) High unemployment in industrial countries B) Bank failures and collapse of credit Unemployment Unemployment leaped leaped from 3% in 1929 to 25% 1929 to 25% in 1933 in 1933

Unemployed C) Collapse of prices in world trade

Rise of Nazi Party D) Nazi Party’s growing importance in Germany; Nazi Party’s blame of European Jews for economic collapse D) Nazi Party’s growing importance in Germany; Nazi Party’s blame of European Jews for economic collapse

8. Reforms Britain-creates National Government-preserves democracy Britain-creates National Government-preserves democracy France-sets reforms and preserves democracy France-sets reforms and preserves democracy A) America-FDR (Franklin Roosevelt) enacts New Deal and preserves democracy

B) Germany and Italy-become disheartened with Democracy-go towards Fascism Leader of Japan Leader of Germany

Understanding #1 A period of uneven prosperity in the decade following WWI (1920s) was followed by worldwide depression in the 1930s. Depression weakened Western democracies, making it difficult for them to challenge the threat of totalitarianism A period of uneven prosperity in the decade following WWI (1920s) was followed by worldwide depression in the 1930s. Depression weakened Western democracies, making it difficult for them to challenge the threat of totalitarianism

Great Depression Exit Quiz Great Depression Exit Quiz 1. All of the following increased during the Great Depression EXCEPT A) Unemployment B) Global Trade C) Bank Closings D) Business Failures 2. What event sparked the Great Depression? 2. What event sparked the Great Depression? A) Germany’s failure to pay reparations B) Hitlers rise to power C) Failure of the League of Nations D) Stock Market Crash of 1929

3. What German political party blamed Jews and Communists for the Great Depression? A) Socialist Party 3. What German political party blamed Jews and Communists for the Great Depression? A) Socialist Party B) Nazi Party B) Nazi Party C) Wiemar Party C) Wiemar Party D) Social Democrats D) Social Democrats

4. What was Germany forced to pay after WWI that was detrimental to their reforming a strong government. 4. What was Germany forced to pay after WWI that was detrimental to their reforming a strong government. 5. What was a tariff? 5. What was a tariff? 6. Why were there high tariffs? 6. Why were there high tariffs? 7. What was it referred to when people took out loans to buy stock with? 7. What was it referred to when people took out loans to buy stock with?

8. The Great Depression was a leading cause in allowing what political party to grow in Germany. 8. The Great Depression was a leading cause in allowing what political party to grow in Germany.