The World Confronts the Crisis The Great Depression The World Confronts the Crisis

The Great Depression Economic Downturn A Global Depression Great Depression—long business slump of 1930s Marked by bank failures, loss of savings, unemployment A Global Depression American economic problems create problems in other countries American investors withdrew in Europe Placed high tariff on imported goods-> backfires why? World trade falls sharply- 65% and unemployment rates skyrocket Effects Throughout the World Germany and Austria suffer greatly, why? Who are they borrowing money from? Asia suffers- depend on selling exports overseas Latin America suffers- demand for sugar, beef, and copper drops so does the price

The World Confronts the Crisis Britain Takes Steps to Improve Its Economy British voters elect coalition government, avoids political extremes Passes high protective tariffs, increased taxes, regulates currency Government brings about slow, steady economic recovery By 1937 unemployment had been cut in half Preserves democracy by avoiding political extremes France Responds to Economic Crisis France has more self-sufficient economy, heavily agricultural less dependent on foreign trade Preserves democracy in spite of economic troubles Socialist Governments Find Solutions Public works programs help Scandinavian countries recover- DEMOCRACIES REMAIN INTACT Sweden, Denmark, Norway govt. sponsored public works programs

Recovery in the United States Franklin D. Roosevelt—American president during Depression FDR Inaugural Address New Deal—Roosevelt’s program of government reform to improve economy Large amounts of money spent on welfare and relief programs