Section 24.1 Vocab and Notes

Recession A period of temporary economic decline during which trade and industrial activity are reduced

An extended period of low economic activity and rising unemployment Depression An extended period of low economic activity and rising unemployment

Collective Bargaining The right of unions to negotiate with employers over wages and hours

Deficit Spending Going into Debt

When the government plays a role in matters Active Government When the government plays a role in matters it normally does not Example 1: FDR’s New Deal Example 2: when the government forced the integration of schools in the libertarian south in the 1950s and 1960s

A general increase in prices and fall in the purchasing value of money Inflation A general increase in prices and fall in the purchasing value of money

Uneasy Peace, Uncertain Security Border disputes among new nations League of Nation=Big Mess US never approves T of Versailles Ruhr Valley – industrial and mining center in Germany (France occupied it) Germans go on strike / Goverment prints more money

What do we do? Dawes Plan Initial $200 million loan to Germany Opened the door for American investment in Europe Treaty of Locarno Guaranteed Germany’s western border Kellogg-Briand pact 63 nations agreed “to renounce war as an instrument of national policy” *Good Signs, but no one else is willing to reduce armies

The GREAT DEPRESSION Depression – very low economic activity and high unemployment Causes Downturn of economies Collapse of the U.S. Stock Market in 1929 Gov’t don’t know what to do Tried to lower wages and raise tariffs on foreign goods Communism becomes more popular, democracy is challenged

Weimar republic The name for the German democratic state Problems: No good leaders Runaway inflation Middle class moves towards radical politics The Great Depression hits Paves the way for extremist parties

France and Great Britain France had the strongest economy in Europe The French New Deal Started by the Popular Front Gave workers collective bargaining rights John Maynard Keynes (British) Unemployment came from a decline in demand not overproduction Encouraged deficit spending