Write down the following prompts / questions in notebooks, leaving two lines between preparing for a video clip about “Stormy Weather”: – (1) Percentage of mortgages in default … – (2) The old faith of self-reliance … – (3) National government in 1930 … – (4) How did people forget their troubles? – (5) Why were our nation’s leader’s scared? – (6) 100,000 American during the 1930’s went to … (7) What were some of the words spoken by Adolf Hitler? (8) Why was this environment perfect for the rise of Hitler? (9) Things named after Hoover … (10) Four million unemployed in 1930, but in 1933 …

Europe in the Great Depression and Its Response What do you notice in the chart?

Deflation

Banking Crisis (1) Early 1920’s Expanding operations, taking out loans (4) , Bank Runs (5) Early 1930’s, Fed. Makes Mistakes, does nothing (2) Mid-1920’s Low interest rates by Federal Reserve (3) Late-1920’s Stock market speculation, as commercial banks invest depositors $$$ Banking Crisis Credit Freeze

Bank Failures ** 600 bank failures a year between

Keynesian Economics Recessions can be caused a drop in aggregate demand. Definition: governments should engage in “short-term deficit spending, generating economic growth.”

Economic Problems In Europe and Political Responses By 1932, European trade fell to 1/3 of 1929 levels U.S.S.R., fairly isolated from global economic problems and Five-Year Plans … France not connected to U.S. trade, but suffered drops in tourism … Great Britain engages in infrastructure improvements …

Causes that Supported Failure of “Weimar Republic ( )” and Rise of Hitler (1) For Germany, resentment over the Treaty of Versailles (2) Economic Instability (3) Political Instability with Parliamentary governments (4) Fears regarding communism

Problem #1 – Treaty of Versailles and Loss of National Honor Paris 1919: Six Months that Changed the World

Consequences of Treaty (2) Severe punishment of Germany: including, war guilt clause & war reparations "The Allied and Associated Governments affirm and Germany accepts the responsibility of Germany and her allies for causing all the loss and damage to which the Allied and Associated Governments …” (3) Germany must reduce the Navy and Army and disband its Air Force (4) Allied Powers take over German colonies

Problem #2 - Economic Instability The Weimar Republic has a difficult time paying the war loan, so it prints more money, too much money. The German “Mark” and the Dollar, 1914 – 1923 DateExchange rate, $1 = ___ Marks – July, marks – January, – January, – July, – January, – January, ,972.0 – August, ,620,455.0 – September, ,860,000.0 – November, ,200,000,000,000.0 marks

U. S. Foreign Policy and German Economy Dawes Plan (1924) – U.S. loans to Germany allow it to pay reparations to Allied Countries German Economic Recovery, Germany profoundly affected by Stock Market Crash of 1929 Calvin Coolidge,

Problem #3 - Parliamentary Governments Governments in Italy and Germany could not form a coalition of support, leading to political instability. Parliamentary governments require a coalition of elected officials to establish a government, for instance … – 30% Liberals (i.e. Social Democrats or Workers’ Party) – 25% Socialist Party (a little more liberal) – 40% Conservatives (“Tories” or “Catholic Popular Party”) – 5% Fascist / Nationalist Party

How does Hitler become Dictator of Germany? Problem #4 - Rise of International communism January of 1933, Hitler is named Chancellor Feb. 27, 1933, burning of the Reichstag, legislative building Enabling Act of 1933, Hitler becomes dictator “From each according to his ability, to each according to his need” – Karl Marx, Communist Manifesto

Germany Responds Economically to the Depression… 1933 – Germany begins the “Autobahn” 1934 – Hitler initiates build- up of military

Hoover Responds to the Great Depression Conventional economic thought … Hoover Dam (1931 – ‘36) benefits … – Water supply – Hydro-electric power – Flood control Reconstruction Finance Corporation (1932) … – $2 Billion to banks, companies, railroads, etc. Emergency Relief Act (1932) … – $$$ to states for public works projects

Hoover Responds to the Great Depression By 1932, unemployment is at 24% … Bonus Army (1932) … – 40,000 war veterans want their promised bonus – U.S. Army evicts veterans from Washington D.C.

Write down the following prompts / questions in notebooks, leaving two lines between preparing for a video clip about “Stormy Weather”: – (1) Percentage of mortgages in default … – (2) The old faith of self-reliance … – (3) National government in 1930 … – (4) How did people forget their troubles? – (5) Why were our nation’s leader’s scared? – (6) 100,000 American during the 1930’s went to … (7) What were some of the words spoken by Adolf Hitler? (8) Why was this environment perfect for the rise of Hitler? (9) Things named after Hoover … (10) Four million unemployed in 1930, but in 1933 …