1. Section 24.1
Vocab and Notes

2. Recession
A period of temporary economic decline during which trade and industrial activity are reduced

3. An extended period of low economic activity and rising unemployment
Depression
An extended period of low economic activity and rising unemployment

4. Collective Bargaining
The right of unions to negotiate with employers over wages and hours

5. Deficit Spending
Going into Debt

6. When the government plays a role in matters
Active Government
When the government plays a role in matters
it normally does not
Example 1: FDR’s New Deal
Example 2: when the government forced the integration of schools in the libertarian south in the 1950s and 1960s

7. A general increase in prices and fall in the purchasing value of money
Inflation
A general increase in prices and fall in the purchasing value of money

8. Uneasy Peace, Uncertain Security
Border disputes among new nations
League of Nation=Big Mess
US never approves T of Versailles
Ruhr Valley – industrial and mining center in Germany (France occupied it)
Germans go on strike / Goverment prints more money

9. What do we do? Dawes Plan Initial $200 million loan to Germany
Opened the door for American investment in Europe
Treaty of Locarno
Guaranteed Germany’s western border
Kellogg-Briand pact
63 nations agreed “to renounce war as an instrument of national policy”
*Good Signs, but no one else is willing to reduce armies

10. The GREAT DEPRESSION
Depression – very low economic activity and high unemployment
Causes
Downturn of economies
Collapse of the U.S. Stock Market in 1929
Gov’t don’t know what to do
Tried to lower wages and raise tariffs on foreign goods
Communism becomes more popular, democracy is challenged

11. Weimar republic The name for the German democratic state Problems:
No good leaders
Runaway inflation
Middle class moves towards radical politics
The Great Depression hits
Paves the way for extremist parties

12. France and Great Britain
France had the strongest economy in Europe
The French New Deal
Started by the Popular Front
Gave workers collective bargaining rights
John Maynard Keynes (British)
Unemployment came from a decline in demand not overproduction
Encouraged deficit spending