1. A Global Depression

2. Unstable Governments & Weak Democracies
Fall of Kingdoms/Empires new democracies in Europe.
Ruled by others for centuries: don’t know how to rule themselves.
Frequent changes in government = instability
1919 Weimer Republic: Germany’s gov’t with a lot of weaknesses.

3. The Roaring 20’s
Fun times reigned
Dancing
Flappers
Drinking

4. German Inflation/Attempts to Stabilize
War Debt
Inflation=Cost more than it’s worth.
The new concept of “credit”  people didn’t have $, but they were spending
Germany prints own money=WORTHLESS!
Loans from the U.S.
Continue to next slide 

5. Continued  Why was this bad?
Credit system
People didn’t really have the money they were spending
WWI
The U.S. was a major credit loaner to other nations in need
Many of these nations could not pay us back

6. Efforts At A Lasting Peace
Treaty of Versailles – Good start but weak no enforcement
Germany signed peace treaty w/ France  Kellogg-Briand Pact
Many nations renounced war (not U.S)
League of Nations = FAILED
We didn’t join!

7. Flawed U.S. Economy Europe’s lands = Trashed by war
Good for U.S. factories = 50% industrial goods produced at home
Uneven wealth: $ goes to factory owners NOT workers
Farms: produce too much food lose $
Banks closing!

8. Stock Market Crash & Global Depression
People buying stocks on margin (credit)
1929: Stock Market Crashes: Banks, Margins, BAD loans, back loans
Tariffs: stop buying each other’s goods; world trade drops 65%
European banks = NO $
Can no longer support Mandates (colonies)
MAIN CAUSE  closing of banks

9. The Stock Market People bought stocks on margins Stocks fall
If a stock is $100 you can pay $10 now and the rest later when the stock rose
Stocks fall
Now the person has less than $100 and no money to pay back

10. With people panicking about their money investors tried to sell their stocks
This leads to a huge decline in stocks
Stocks were worthless now
People who bought on “margins” now could not pay
Investors were average people that were now broke
And then….

11. What about the people? Farmers were already feeling the effects
Prices of crops went down
Many farms foreclosed
People could not afford luxuries
Factories shut down
Businesses went out
Banks could not pay out money
People could not pay their taxes
Schools shut down due to lack of funds
Many families became homeless and had to live in shanties

13. Many waited in unemployment lines hoping for a job.

14. People in cities would wait in line for bread to bring to their family.

15. Some families were forced to relocate because they had no money.

16. President Hoover Herbert Hoover was president at the start
Philosophy: We’ll make it!
What He Did: Nothing
The poor were looking for help and no ideas on how to correct or help were coming

17. “Hooverville” Some families were forced to live in shanty towns
A grouping of shacks and tents in vacant lots
They were referred to as “Hooverville” because of President Hoover’s lack of help during the depression.

18. Hooverville

19. The World Responds Britain: Very industrial, depression hit hard.
High tariffs; increased taxes; regulated $, led to slow recovery.
France: self-sufficient, agriculture economy, less foreign trade = weak depression
Socialist govt’s: heavy govt. involvement & taxes (still today) = no depression
United States:
Hoover: did nothing to help the depression.
1932: Franklin Roosevelt elected & starts New Deal, brings $ to U.S. & creates jobs

20. *FDR* When he was inaugurated unemployment had increased by 7 million.
Poor sections (like Harlem) had 50% of the population unemployed
Created the “New Deal”

21. The End