1. WHII: SOL 11b
Great Depression

2. Introduction
A period of uneven prosperity in the decade following World War I (the 1920s) was followed by worldwide depression in the 1930s. Depression weakened Western democracies, making it difficult for them to challenge the threat of totalitarianism.

3. Causes of worldwide depression
German reparations
because Germany was required to pay for the cost of World War I, it printed large amounts of money to do this, causing the value of its currency to decline
Expansion of production capacities and dominance of the United States in the global economy
High protective tariffs
Excessive expansion of credit
Stock Market Crash of 1929

6. Vocabulary
runaway inflation: As prices rise, the value of the currency declines; soon things become so expensive that people cut back on their buying, which leads to companies cutting back, which leads to layoffs of employees.
protective tariffs: When countries place high tariffs on imported goods, other countries retaliate, leading to a “tariff war.” As a result, jobs are lost in the import-export businesses.

7. Vocabulary
overproduction: When companies overproduce, inventory accumulates and production is cut back, leading to layoffs of employees.
rapid rise in stock prices: When stock prices go up rapidly, buying stock increases until many stocks become overvalued and a panic occurs, dropping prices too quickly and wiping out many people’s investments.

8. Impact of worldwide depression
High unemployment in industrial countries
Bank failures and collapse of credit
Collapse of prices in world trade
Nazi Party’s growing importance in Germany; Nazi Party’s blame of European Jews for economic collapse

9. Impact of worldwide depression
Weakening of the democracies as they struggled to cope with the economic losses of homes
Popularity of fascism and its relation to National Socialism