1.   Depression  Recession  Hyperinflation  Black Tuesday  On Margin  Margin Call  Installment Plan  New Deal  Protectionist Policies  Investor 7-4.3 Great Depression Vocabulary

3.  1. Effects of WWI A.The Great Depression began in the 1930s all over the world. B.Because of the damage from WWI Europe was facing serious economic problems. C.Many countries had to rebuild most of their infrastructure after the war.

4.  A.Many soldiers were coming home from the war and looking for work. B.The jobs that were available in manufacturing during the wa r went bankrupt when the war ended, so those people were out of work, as were the soldiers. This led to very high unemployment. C.Germany struggled more than most- because it lost so much important land in the Treaty of Versailles. 2. Wartime Transition

5.  3. Germany Taken Advantage Of A.Many countries took advantage of their loss in the war. B.In addition to Germany having to pay back reparations to the winners, the French seized the Rhur Valley, a major German industrial center, in 1923. C.This left Germany with no other option than to print money, which led to hyperinflation as their money had no economic support. (Think supply and demand) German Children playing with worthless bundles of money.

6.  4. From Boom to Bust A.Despite problems elsewhere, during the 1920s, the US was experiencing an artificial “boom”. Manufacturers were still producing things at war-time levels. B.Many people were buying things, like stocks on credit, (or margin, in the stock market) – when it came time to repay the credit- couldn’t pay. C.In late 1929 demand fell, prices fell and stockholders sold their stocks-prices dropped so low that people called this event a stock market crash. D.The worst day was October 29 th, “Black Tuesday”, stocks lost between $10 to $15 BILLION in value.

7.  5. The People Panic! A.People ran to the banks to withdraw money but banks had loaned to much. B.Companies laid off employees which led to higher unemployment and less people buying goods. C.People who had put their homes as collateral for loans found themselves and their families on the streets as the banks sought to get their money back.

9.  6. The Great Depression Causes and Effects Causes: A.Over production and low demand -employee layoffs. B.Low wages – consumers can’t buy C.High taxes restrict foreign demand for American goods D.Unemployment- consumers can’t buy Effects A.Stopped buying extra things like cars, sales drop…this leads to: B.Low demand for textile, oil, steel, rubber…this leads to: C.Lower wages and unemployment which leads to… (back to the top)

10.  A.America had made itself a creditor of nations during WWI. B.When America started to suffer financially they forced the countries that borrowed money from the US to give it back. C.Without these loans, economies of other countries began to suffer. D.The response to these actions by some governments was the election of totalitarian leaders, isolationism or, in democracies- laws to ‘soften the blow’ of the hardship. 7. Problems Overseas

11. The unconquerable human spirit of the American people made it possible for them to survive the depths of the Depression. No one knew what they might have to face in the future, but they were in it together, until better days….

12.  8. Franklin Delano Roosevelt A.The United States overwhelmingly elected Franklin Delano Roosevelt in the 1932 election. B.Roosevelt began the New Deal which was designed to put people back to work in many different ways.

13. 9. The New Deal A.The New Deal enhanced the role of the government in the lives of the people. B.For the first time, government relief relief was given directly to citizens. C.Britain responded differently, making policies designed to protect their industry from outside influence. (Protectionist Policies)