1. Chapter 15 Section 2 A Global Depression By: DeLace Noah Nick Keith
Jordan
Sean
Ryan
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2. Setting the Stage
By the late 1920’s, European nations were rebuilding war-torn economies.
They were aided loans from the prosperous United States.
In the United States, Americans seemed confident would continue on the road to even greater economic prosperity, one sign of this was the booming stock market.
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3. Europe After the World
In both human suffering and economic terms, the cost of World War I was immense.
The Great War left every major European county nearly bankrupt.
Only the United States and Japan came out of the War in better financial shape than before. Both countries expanded their trade goods during the war.
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4. New Democracies Are Unstable
War’s end saw the sudden rise of new democracies.
From , Europe’s last absolute rules had been overthrown.
The dynasties of the Hohen-zollern in Germany, the Hapsburg in Austria-Hungary, the Romanovs in Russia, and the Ottomans in Turkey all ended. First new governments was formed in Russia. In 1917.
The Provisional Government, hoped to establish constitutional and democratic rule. Within months it had fallen to a democratic governments.
Many citizens of the new democracies had a little experience with representative government.
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5. New Democracies Are Unstable Continued…
For generations, King and Emperors had rules Germany and the new nations formed from Austria- Hungary.
Some counties had a dozen or more political groups, in these countries, it was almost impossible for one party to win enough support to govern effectively. When no single parties, was needed to form a parliamentary majority. Because the parties disagreed on so many policies, coalitions seldom lasted very long.
Voters in several countries were then willing to sacrifice democracy for strong, totalitarian leadership.
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6. Weimar Republic Is Weak
Germany’s new democratic government was set up in 1919.
Weimar Republic had serious weakness from the start.
Germany had lacked a a strong democratic tradition.
Worst of all, millions of Germans blamed the Weimar government, not their wartime leaders, for the country’s defeat and postwar humiliation.
Weimar government that had signed the Treaty of Versailles.
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7. Inflation Causes Crisis in Germany
Germany also faced enormous economic problems that began during the war.
To pay the expenses of the war, the Germans simply printed more money. After Germany’s defeat, this paper money steadily lost it value.
Germany printed more money for Burdened with heavy reparations payments to the Allies and with other economic problems.
The value of money was very little that the money people saved up to but a house could only buy a table.
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8. Attempts at Economic Stability
Germany recovered form the 1923 inflation largely thanks to the work of an international committee.
The committee was leaded by Charles Dawes, an American banker.
The Dawes Plan provided for a 200 million loan from American banks.
In 1924, the Dawes Plan helped slow inflation. As the German economy began to recover, it attracted more loans and investments from United States.
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9. Efforts at An Lasting Peace
As prosperity returned, Germany’s foreign minister, Gustav Stresemann, and France’s foreign minister, Aristide Briand, tried to improve relations between their countries.
They signed a treaty promising that France and Germany would never again make war against each other.Germany also agreed to respect the existing borders of France and Belgium.
It then was admitted to the League of Nations.
In 1928, the hopes raised by the “spirit of Locarno” led to the Kellogg-Briand peace pact.
Europeans were enjoying and econo,ic boom based largely on massive American investment.
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10. The Great Depression
In the late 1920s, the world economy was like a delicately balanced house of cards.
The Untied States economy weakened, the whole world’s economic system might collapse, in 1929.
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11. A Flawed U.S Economy
Three weakened in the U.S economy caused serious problems.
1. Uneven distribution of wealth
2. Overproduction by business and agriculture
3.Lessening demand for consumer.
In 1929, American factories were turning out nearly half of the world’s industrial goods.
The richest 5 percent of the population received 33 percent of all personal income in 1929.
The 60 percent of all American families earned less than 2,000 dollars a year. Most families was to poor to but the goods being produced.
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12. A Flawed U.S. Economy Continued…
Unable to sell al their goods, store owners cut back on their order from factories. Factories in turn reduced production and laid off works. A downward economic spiral began.
During 1920s, overproduction affected farmers as well.
Unable to sell their crops at a profit, many farmers could not pay off their bank loans that kept in business.
The danger signs of overproduction by factories and farms should have warned people against gambling on the stock market.
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13. The Stock Market Crashes
In 1929, Wall street, in New York City, was financial capital of the world Banks and investment companies lined its sidewalks.
The stock exchange showed soaring stock prices.
Even the middle class was buying in on the stock exchange
They would pay some of the money up front and was loaned the rest.
Investors began to question the stock so they began to sell.
Soon the stocks started to drop and it became a mad selling rush.
October 24th thousand of stock brokers roared through Wall Street trying to sell stock.
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14. The Stock Market Crashes Continued…
A record 16 million stocks were sold.
Within months of the crash unemployment soared.
It was the GREAT DEPRESSION
Factory production was cut in half
Thousands of businesses failed and banks closed
One fourth of Americans were unemployed
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15. A Global Depression
The collapse of American economy set off a chain reaction throughout the world.
American banks withdraw money from over sea loans.
Congress placed high tariffs on foreign goods.
Caused more problems , increasing costs on products
World trade drop 65 percent.
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16. The World Respond to the Crisis
The Depression confused confronted democracies, with a serious challenge to their economic and political systems.
Each country met the crisis.
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17. Britain Takes Steps to Improve its Economy
It economy depended on foreign trade, the Depression hit Britain severely.
They had an emergency meeting of Britain voters elected multi-party coalition as the National Government.
The government’s policies were designed to rescue the nation from economic calamity.
It passed high protective tariffs, increased taxes, and regulated the currency.Also, lowered interest rates to encourage industrial growth.
By1937, unemployed had got cut into half, and production had risen above 1929 levels.
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18. France Responds to Economic
France had a more self-sufficient economy.
In 1930, it was heavily agricultural and less dependent on foreign trade.But by1935, 1 million French workers were unemployed.
In 1933, five coalition governments formed and fell.
Many political leaders were frightened by the growth of anti-democratic forces both in France and in other parts of Europe.
By 1936, moderns, Socialists, and Communists formed a coalition called The Popular Front.
The Popular Front passed a series of reforms to help the workers, these reforms were pay increases, holidays with pay, and a 40-hour work week.
Unfortunately, price increases quickly offset wage and unemployed stayed high.
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19. Socialist Governments Find Solutions
The Socialist governments on the Scandinavian countries of Denmark, Sweden, and Norway also met the challenge of economic crisis successfully.
Sweden the massive public work projects that kept people employed and producing.
Scandinavian countries raised pensions for the elderly and increased unemployment insurance, subsidies for housing, and other welfare benefits.
To pay benefits, the governments taxed all citizens.
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20. Recovery in the United States
In 1932, the first presidential election after the Depression had begun, U.S. votes elected Franklin D. Roosevelt as president.
March 4, 1933, the president sought to restore Americans’ faith of their nation.
Roosevelt immediately began a program of reform that the called the New Deal.
Large public works projects help provide jobs for the unemployed.
Roosevelt and his advisers believed that government spending would create jobs and start a recovery
Despite these efforts, recovery was slow
The New Deal did eventually reform the American economic system
Established him as leaders of democracy in world threatened by ruthless dictators.
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21. Key Terms
Coalition government: a government controlled by a temporary alliance of several political parties
Weimar Republic: the republic that was established in Germany in 1919 and ended in 1933
Great Depression: the serge economic slump that followed the collapse of the U.S. Stock market on 1929.
New Deal: U.S. president Franklin Roosevelt’s economic reform program designed to solve the problems created by the Great Depression.
Franklin D. Roosevelt: the first presidential election after the Depression had begun voters elected FDR
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22. Quiz
What two countries came out of the financially better than when they came in?
Why id id that Japan and U.S. came out of the richer than they came in?
What was Germany’s demoratic government called?
Why did millions blame the Weimar Republic?
Why were there weakness in the U.S. economy?
What year did the stock market crash?
How many Americans were unemployed?
What was the British multi-party coalition?
What what work projects that had people employed and producing?
Who was the first president after The Great Depression?
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