1. The Great Depression The roaring 20s ends suddenly with the crash of 1929

2. What were the causes? The world economy was producing too much – people were buying and selling shares of stock that they really could not afford The world economy was producing too much – people were buying and selling shares of stock that they really could not afford US companies were selling lots of goods so people borrowed money to buy shares in them US companies were selling lots of goods so people borrowed money to buy shares in them

3. How does buying and selling stock work? 1) You buy shares in a company and the company uses your money 2) If the company is successful then more people want to buy the shares, pushing the price of the stock up 3) A shareholder can sell shares and make a profit if the value has risen 4) If the company is not successful then people lose confidence and want to sell their shares. The price goes down and share holders make a loss.

4. Europe couldn’t afford the US goods Europe could not afford US goods and many were protecting their own goods by putting high duties on American imports Europe could not afford US goods and many were protecting their own goods by putting high duties on American imports There was existing competition between Canada, India and Japan There was existing competition between Canada, India and Japan Many US producers overproduced; there was too much supply and not enough demand Many US producers overproduced; there was too much supply and not enough demand US farmers could not afford to buy because they couldn’t sell their own produce US farmers could not afford to buy because they couldn’t sell their own produce US companies had no one to sell their products to and started to lose money US companies had no one to sell their products to and started to lose money

5. The Crash of 1929

6. People rushed to sell shares because they realized companies were doing poorly People rushed to sell shares because they realized companies were doing poorly Businesses collapsed and thousands of people were ruined, by the end of the month they were selling shares for whatever they could get for them Businesses collapsed and thousands of people were ruined, by the end of the month they were selling shares for whatever they could get for them People were hoping that banks would keep the prices up artificially; they could not because they were out of money, cash had been loaned and not repaid causing many banks to fail People were hoping that banks would keep the prices up artificially; they could not because they were out of money, cash had been loaned and not repaid causing many banks to fail The Republican govt. did not believe the state should interfere in a free market economy to help businesses, the poor or unemployed; they should help themselves The Republican govt. did not believe the state should interfere in a free market economy to help businesses, the poor or unemployed; they should help themselves

7. To Synopsize the Great Depression: Early 1920s – BOOM YEARS – people borrow to buy shares Early 1920s – BOOM YEARS – people borrow to buy shares Share prices increase and companies over produce Share prices increase and companies over produce 1928-1929 – there is a difficulty selling goods and the confidence is broken 1928-1929 – there is a difficulty selling goods and the confidence is broken People sell shares, production stopped and unemployment is high People sell shares, production stopped and unemployment is high By October of 1929, there was little money in the economy, therefore a DEPRESSION By October of 1929, there was little money in the economy, therefore a DEPRESSION

8. What were the effects of the Great Depression? The USA: In 1929, the USA stopped lending money abroad and called in its loans In 1929, the USA stopped lending money abroad and called in its loans By 1930, nearly 2000 banks collapsed as people rushed to withdraw their savings By 1930, nearly 2000 banks collapsed as people rushed to withdraw their savings Three years later there were over 12 million unemployed in the USA Three years later there were over 12 million unemployed in the USA

9. The Dow Jones Industrial Average

10. The Depression of Britain and Europe Britain devaluated the pound in 1929 Britain devaluated the pound in 1929 They tried to impose import tariffs but that didn’t work They tried to impose import tariffs but that didn’t work Within 3 years there were 3 million unemployed in Britain and 30 million overall in Western Industrial nations Within 3 years there were 3 million unemployed in Britain and 30 million overall in Western Industrial nations Britain was already suffering from the 1926 strike with the miners Britain was already suffering from the 1926 strike with the miners Most industrial nations were affected, banks tanked, industry struggled and trade came to a halt Most industrial nations were affected, banks tanked, industry struggled and trade came to a halt The least affected was the USSR! (SURPRISE) The least affected was the USSR! (SURPRISE)

12. World Unemployment

13. World Markets

14. Was it all bad? No.. Some good came out of the Depression. Those who were still in work found their standard of living was raised, they bought more for less Those who were still in work found their standard of living was raised, they bought more for less In Britain, the car, aircraft and electrical goods industry were not affected, industry that used coal (shipbuilding, iron and steel) suffered badly In Britain, the car, aircraft and electrical goods industry were not affected, industry that used coal (shipbuilding, iron and steel) suffered badly

15. Political Implications People criticized governments, especially democracies with regular elections People criticized governments, especially democracies with regular elections Economic and political problems meant countries turned to dictators Economic and political problems meant countries turned to dictators Countries like Japan, Italy and Germany decided to expand into other countries, threatening the peace Countries like Japan, Italy and Germany decided to expand into other countries, threatening the peace The breakdown of trade led to lots of international tension The breakdown of trade led to lots of international tension

16. Some effects of the Depression 1 2 3 4 5 1)America becomes isolationist 2)Democracy survives in France but they begin building defenses against Germany 3) Spanish Civil War from 1936-1939 4) Italy invades Abyssinia in 1935 5) Hitler and other dictators rise

17. The Effects of the Depression on Major powers USA – 13 million unemployed, anger towards Republicans because they failed to help with the situation USA – 13 million unemployed, anger towards Republicans because they failed to help with the situation Germany – The Weimar govt. broke down by 1933 and people turned to Hitler’s strong govt. which promised a better life Germany – The Weimar govt. broke down by 1933 and people turned to Hitler’s strong govt. which promised a better life Italy – Mussolini wanted to take people’s minds of problems by increasing its power abroad Italy – Mussolini wanted to take people’s minds of problems by increasing its power abroad Britain – democracy survived but there were 3 million unemployed, though groups like the ‘blackshirts’ became popular Britain – democracy survived but there were 3 million unemployed, though groups like the ‘blackshirts’ became popular France – the depression hit later than most countries, because they could no longer sell luxury goods like wine. This left 1 million unemployed and room for extreme political groups France – the depression hit later than most countries, because they could no longer sell luxury goods like wine. This left 1 million unemployed and room for extreme political groups Japan – goods like silk would not sell and Japan’s economy was badly effected. Therefore Japan decided to take over other countries to try to use its influence in other spheres. Japan – goods like silk would not sell and Japan’s economy was badly effected. Therefore Japan decided to take over other countries to try to use its influence in other spheres.

18. Was the US to blame?? Since the US market crashed and customers had no money, industry world wide was short on customers. Add that to the fact with the fact that the US was calling in their loans, and it makes for a bad situation all around. Since the US market crashed and customers had no money, industry world wide was short on customers. Add that to the fact with the fact that the US was calling in their loans, and it makes for a bad situation all around. USA? World??

19. Main causes of the depression: (to synopsize) The Wall Street Crash of 1929 The Wall Street Crash of 1929 World War I had tapped out resources and money from many European countries World War I had tapped out resources and money from many European countries

20. How did the 1 st World War contribute to Britain’s depression? The huge number of soldiers coming home from war meant unemployment rose The huge number of soldiers coming home from war meant unemployment rose Industry such as coal and railroads were so busy during the war, there was little time for repair, therefore they were not efficient during peace time Industry such as coal and railroads were so busy during the war, there was little time for repair, therefore they were not efficient during peace time Few houses were built during the war, therefore with population increase, there was a housing shortage, forcing the poorest to take substandard housing Few houses were built during the war, therefore with population increase, there was a housing shortage, forcing the poorest to take substandard housing When the economic slump got worse in Britain more unemployment benefits were paid, but less people were contributing, therefore the scheme could not cope When the economic slump got worse in Britain more unemployment benefits were paid, but less people were contributing, therefore the scheme could not cope