1. { The Great Depression (in 45 minutes)

2.  WWI caused the US to have the best economy in the world and it grew rapidly in the 1920s  Farms and factories greatly expanded production during the War to supply the Allied Powers.  After the War ended, production continued at a high rate but there weren’t as many people to buy the goods, so prices dropped. WWI and the American Economy

3.  In the 1920s, the value of stocks rose by 400%.  This was because there were so many new businesses and new products on the market that could be bought by the “common man” using credit.  Cars  Radios  Vacuum Cleaners  Washers  Etc. The “Roaring 20s”

4.  Spending had been slowing down and investors became nervous (they didn’t want to hold on to their stocks if the price was about to fall) and sold their stocks – unfortunately, everyone had the same idea and tried to sell their stocks at the same time.  The price of stocks plummeted and the stock market crashed. October 29, 1929

5. Investors lost money when stock market crashed & businesses went bankrupt Banks lost money when people/investors & businesses couldn ’ t repay credit/loans Businesses lost money when people bought less goods & investors stopped investing People lost money when banks closed & when lost jobs

6.  By 1933, 25% of Americans were unemployed. Without jobs, they couldn’t buy goods and so the economy became even worse (cycle of economy depression).  Banks failed because people couldn’t repay their loans. The Great Depression

7.  Great Britain  Still paying back debts to the US in the late 1920s – to raise the money they had to increase interest rates which caused people to spend less, making businesses fail and people lose jobs  By 1930, 2.5 million were unemployed and there was much unrest. The Great Depression Spreads

8.  France  WWI destroyed farmland, forests, villages, cities, and labor (people)  The government was bankrupt after the war and couldn’t rebuild the country.  Unemployment was high and there was much unrest. The Great Depression Spreads

9.  Hyperinflation video The Great Depression Spreads

10.  Germany  Still paying back reparations for WWI – to do this they printed more and more money, making their currency worthless. (Hyperinflation) The Great Depression Spreads

13.  Canada – 30% unemployed by the 1930s  Australia – 32% unemployed by 1931  South America – US had invested in South American economies so many countries were hard hit  Etc. The Great Depression Spreads

14.  What effect is this worldwide depression going to have on the interwar period? So what?