A World- wide Depression

bellringer The 20th century started out with a BANG of WWI. What do you think will happen as a result of spending all their money on the war?

Postwar Europe Late 1920s Rebuilding war-torn economies Aided by loans from the US US & Japan only 2 better off than before Booming stock market in America

Unstable New Democracies Rise of new democracies Last absolute rulers overthrown Most part, European nations had democratic governments Citizens had little experience with representative government Some countries had several political parties and made it impossible for one party to gain enough support Frequent changes made it hard to develop strong leadership Voters were willing to sacrifice democratic government for strong authoritarian leadership

The Weimar Republic

●Germany’s diplomatic government ●Set up in 1919 ●Serious weaknesses ●Lacked a strong democratic tradition ●Post-war Germany had several major parties and minor ones ●Millions blamed the Weimar government for country’s defeat and postwar humiliation caused by Versailles Treaty Weimar Republic

The Kellogg-Briand Peace Pact 1928 US Secretary of State, Kellogg, arranged with France Almost every country in the world, even Soviet Union, signed it “Renounce war as an instrument of national policy.” No means to enforce its provisions

Financial Collapse Late 1920s, American economic prosperity largely sustained the world economy If the US economy weakens, they all weaken US Stock Market collapses in October 1929 Many middle-income people began buying stocks on margin September 1929 investors start selling stocks thinking prices would go down. October 24th, gradual lowering of stock prices became a slide October 29, prices plunged to a new low 16 million stocks were sold Market collapses

The Great Depression Unemployment rises, industrial production, prices, and wages declined Stock market alone didn’t cause depression but it quickened it Thousands of businesses failed Banks closed 9 million people lost money in savings accounts when banks had no money to pay them Farmers lost lands By 1933, ¼ American workers had no jobs w

A Global Depression American bankers demanded repayment of overseas loans American investors withdrew their money from Europe American market dropped sharply after congress placed high tariffs on imported goods Countries dependent on exporting goods to the US suffered Nations imposed higher tariffs World trade dropped by 65% Unemployment soared

Effects Throughout the World Due to war debts, and dependence on American loans and investments- Germany and Austria were hit hard 1931, Austria’s largest bank failed Asia, both farmers and urban workers suffered as the value of exports fell by half between

Today’s Task Today you will go on a carousel ride. You will collect information about different nations during the Great Depression. You will complete an organizer on the depression, and answer the questions on the back.