1. The Great Depression Mr. Wilson

2. Images

3. Excerpt #1 Due to the severe damages caused by WWI and the heavy monetary penalties placed on Germany by the reparations included in the Treaty of Versailles, serious economic problems began in Europe. 1. What two effects caused economic issues to begin in Europe? Severe Damages, Heavy monetary Penalties Placed on Germany

4. Excerpt #2 Many European countries were now faced with the issue of rebuilding from the war. They did so with the money from Germany, but the expense of rebuilding was very high. Also, many European nations had soldiers returning home from the war. These soldiers came home looking for work. Wartime spending at stretched many of these nations financially but also kept employment high. With soldiers coming back looking for work, unemployment rose in many countries of Europe.

5. Excerpt #2 Questions 2. What task were most European countries faced with after WWI? 3. How did countries pay for rebuilding after WWI? Was it enough? 4. Who returned home to European countries after the war? 5. What did the soldiers come home looking for? 6. What began to rise when these soldiers came home and could find no jobs? Rebuilding from the war. With the money from Germany, not exactly-rebuilding was still high cost. Soldiers They were looking for work Unemployment levels

6. Excerpt #3 Germany faced the greatest economic challenges due to the high reparations and the loss of some of its prime industrial land and resources imposed by the Treaty of Versailles. German economic weakness hurt trade and production in Western Europe as well. In 1923, France further sabotaged Germany’s ability to become economically viable and thus pay owed reparations by seizing the Ruhr Valley. This was one of Germany’s main industrial regions.

7. Excerpt 3 Questions 1.For what reasons did Germany suffer the greatest economic challenges after WWI? High reparations, loss of prime industrial land 1.German economic weakness hurt trade and production in ________________________ as well. 2.What did France do in 1923 that continued to weaken the economy of Germany? Why was this area important to Germany? Western Europe Seized the Ruhr Valley-one of Germany’s main industrial regions

8. Excerpt #4 & 5 4. Germany responded to this by printing money that had no value. This caused hyperinflation and devaluing of money all across the continent of Europe. 5. Due to all of these difficulties, European nations were not buying and investing in foreign goods, including goods from the United States.

9. Excerpt 4 & 5 Questions 4. How did Germany respond to their hurting economy? Printing more money-had no value 5. What did Germany printing more money cause all across Europe? Hyperinflation and devaluing of money 6. European nations were not buying and investing in ____________________________ including the ________________________ because of its economic issues. Foreign goods United States

10. Excerpt 6 & 7 6. Though Europe faced economic difficulty, the economy of the U.S. experienced an artificial boom in the 1920s. American companies continued producing goods at the high volume they had achieved during wartime. 7. American farmers who had fed the allied armies and the people of Europe during WWI, no longer had anyone to sell their food to. This resulted putting them into a depression during the 1920s, while the wages of industrial workers remained low.

11. "Surviving The Dust Bowl"

12. Excerpt 6 & 7 Questions 1. What did the U.S. experience in the 1920s? Artificial Boom 2. American companies continued doing what even after wartime? Produced goods at high volumes 3. What happened to American farmers after WWI, why? In a depression-no longer had anyone to sell food to 4. The wages of industrial workers remained ________________________________. LOW

13. Excerpts 8 & 9 8. For a while, many Americans bought goods on the installment plan, but reached the extent of their buying power. The 1920s appeared to be a time of economic prosperity because Americans bought more stock in U.S. companies hoping that the prosperity would continue. These stocks were often bought on credit and the investments were risky because they required further business growth. 9. Buying stock on margin led to values rising quickly making it appear as though money was there to be quickly and easily made. This enticed more investors to invest in the risky stock market. Over time, sales of goods slowed because European consumers could not buy and American consumers slowed the amount they were buying. This increased in a surplus of goods with a shrinking customer market.

14. Excerpts 8 & 9 Questions 1. For a while, how could Americans buy goods? 2. Why did the 1920s appear to be a time of economic prosperity? Americans bought more stock in U.S. companies; hoping it would continue 3. How were stocks bought during the 1920s? Credit 4. Why were these types of investments risky? They required future business growth 5. Buying stock on margin led to values rising quickly making it appear as though money was there to be _______________________________________. The Installment Plan To be made

15. It was the Roaring Twenties

16. Excerpt 8 & 9 Questions continued 6. The high values enticed more of what? More investors in the risky market 7. Why did the sale of goods begin to slow down? European consumers could not buy and American consumers slowed down buying 8. The slowing down of the sales of goods led to what? A surplus of goods with a shrinking customer market

17. Excerpts #10&11 10. This surplus began to increase rapidly and investors began selling their stock and stock prices began to quickly fall in the late 1920s. The creditors began demanding payment for the stocks but investors really did not have the money to repay them. 11. Investors made this worse when they began selling off their stocks at a high volume and withdrew their money from the banks to pay their debts. All of these activities resulted in a Stock Market Crash. October 29 th, 1929 known as “Black Tuesday” the U.S. experienced the biggest loss in financial worth in the stock market.

18. Excerpt 10 & 11 Questions When this surplus began to increase, what did investors begin doing? Selling their stock What did this cause stock prices to do in the late 1920s? Began to quickly fall Creditors began demanding payment for stocks but investors did not have what? The money to repay them How did investors make the issue worse? They sold stock at high volumes and withdrew money to pay debts All these activities together resulted in what? A Stock Market Crash What date did the Stock Market crash? October 29 th 1929 What was this date known as? “Black Tuesday”

19. Excerpt 12 & 13 12. As a result of loss in the stock market and declining consumer demand, companies began to lay off its workers. This caused unemployment to rise and furthered the problem of surplus goods because no one could afford to buy them. Layoffs continued to increase, sales decreased, and people went to the banks to withdraw all of their money making things even worse. 13. Depositors who had not put money in the stock market lost their saving as well. This was because of the panic to get money out of the banks once the stock market crashed. The banks had took most of their money and loaned it out. There was no such thing as bank insurance at this time to protect the money people put into the bank.

20. Excerpt 12 & 13 Questions 1.Why did companies begin laying off workers? Loss in the stock market, declining consumer demand 2. Why did the problem of surplus goods continue? No one could afford to buy them 3. List three things that happened in section 12 that made the economy worse. Layoffs increased, sales decreased, people went to banks to withdraw money 4. Why did people lose their savings who had not invested in the stock market? Panic of taking money out of bank 5. What had the banks done with most of the money in the banks? Loaned it out. 6. Was there anything to protect people’s money during this time period? No- no banking insurance

21. Excerpt 14 & 15 14. When people were losing all of their savings banks were asking for full payment on the loans, known as “calling the loan.” In order to reinstates their capital and prevent closure, citizens with mortgages or other loans began losing their homes or other processions they had borrowed the money on. 15. Unemployment and homelessness began to increase, banks and businesses closed, and the economic depression in the U.S. intensified the worldwide depression.

22. Excerpt 14 & 15 Questions 7. Explain what “calling the loan” means. When banks asked for FULL payment on loans 8. What did citizens begin losing in order to prevent bank closures? Homes or other possessions they had borrowed money on. 9. What began to increase as people lost jobs and homes? Unemployment, Homelessness 10. What happened to banks and businesses? They closed

23. “Hoovervilles ”

24. "Welcome to Hooverville"

25. Excerpt 16 & 17 16. The U.S. was a creditor to European nations after WWI during the 1920s. The economies of Europe was linked to the United States. In other words, they relied on each other heavily. Many nations, including Germany relied on borrowing money from the U.S. 17. When the Economy of the U.S. got worse, investors began asking for the money they had loaned to the European countries and also stopped loaning money at all when these countries were unable to pay up. Without these loans, countries of Europe began to suffer.

26. Excerpt 16 & 17 Questions 1. The economies of _________________________ was linked to the United States. 2. What did most nations of Europe (Germany) rely on from the United States? Borrowing money 3. What did investors began doing to European nations when the economy in the U.S. got worse? Asking for the money they had loaned, stopped loaning money all together Europe

27. Excerpt 18 18. European nations and the U.S. also participated in worldwide trade and depended on it greatly. Due to the economic issues, investments in the markets of Africa, Asia, and South America began to decline. As a result of this the economies of those nations in Africa, Asia, and South America began to suffer as well. By the early 1930s the pains of the depression could be felt all over the world.

28. Excerpt 18 Questions 4. Investments in the markets of what countries declined due to economic issues? Africa, Asia, and South America 5. By the late 1930s the pains of the depression could be felt __________________________________. All over the world

29. Excerpt s 19 & 20 19. Many governments responded to the economic issues that its country was facing. Some of these countries even turned to totalitarian leaders. Most countries reacted by turning to the policy of isolationism and focused on solving the problems of its own country. 20. Most democratic nations responded by passing laws. In totalitarian states, leaders used their unlimited power to imperialize and gain raw materials and markets to help their economy. This would eventually be a cause of WWII.

30. Excerpt 19 & 20 Questions 1.What type of leaders did some countries turn to because of economic issues? Totalitarian Leaders 2. Most countries turned to ______________________________ and focused on solving its own Economic Problems. 3. True or False: Most democratic nations responded by passing laws. TRUE 4. In totalitarian states, leaders used their ________________________ power to imperialize and gain raw materials and markets to help their economy. This would eventually cause WWII. Isolationism Unlimited

31. Excerpt 21-23 21. The U.S overwhelmingly elected President Franklin D. Roosevelt to office in 1932. Roosevelt created and congress passed a series of laws and programs known as The New Deal. These policies focused on relief and reform programs for the American people. 22. Examples of relief programs were public work programs to increase morale and stimulate employment. Regulations included the stock market, banks, business, and agriculture production. The New Deal gave the federal government more power in the economy and in the lives of American citizens. 23. In Britain, the government enacted protectionist policies designed to protect the domestic industries and services from foreign competition. Examples of this included dropping the gold standard and increased government ownership and/or management of important industries. Britain also raised taxes to loan money to new businesses in the hope of raising employment.

32. Excerpt 21-23 Questions 1.Who was elected president to the United States in 1932? Franklin Delano Roosevelt 2. What was the New Deal? A series of Laws and Programs 3. What did the New Deal focus on? Relief and Reform Programs for the American People 4. What were some examples of relief programs? Public work programs to boost morale and stimulate employment 5. What types of regulations were put in place by the New Deal? Stock Market, Banks, Businesses, Agricultural Production 6. What did the New Deal give the federal government? More power in the lives of American Citizens and the economy 7. What did the British government do to help the economy? protectionist policies designed to protect the domestic industries and services from foreign competition 8. List the examples of things Britain did to help its economy. Dropping gold standard, increased government ownership of businesses, raised taxes to loan the money to new businesses.

33. Excerpts 24-26 24. In Germany, the depression allowed radical groups to begin participating in government. This led to the rise in power of the Nazi party in Germany. Adolph Hitler was able to take control because people were unhappy because of the economy and the government. He also took advantage of the parliamentary setup to become Chancellor in 1933. Most Germans hated the Treaty of Versailles and Hitler said with him in power they would no longer follow it. 25. Benito Mussolini gained support in Italy because of discontents that were very similar. A military takeover in Japan occurred as well. 26. The Totalitarian governments of Germany, Italy, and Japan would use the depression to justify the takeover of other nations in order to make their economies better.

34. Excerpt 24-26 Questions 1.What did the depression allow in Germany? 2.What was the name of the political party that took power in Germany? 3.Why was Adolf Hitler able to take power in Germany? 4.Hitler took advantage of the ___________________________ set up and became ________________________ in ___________________________.

35. Excerpt 24-26 Questions Continued 5. True or False: Germany loved the Treaty of Versailles and thought that it was fair. 6. True or False: Hitler said that with himself in power, Germany would continue to follow the Treaty of Versailles. 7. What other two countries had dictators come to power during the Great Depression? 8. The ______________________governments of ________________, Italy, and __________________________ would use the ____________________________ depression to ____________________ the takeover of other __________________________ in order to make their ________________________ better.