1. The Victorious Democracies The Interwar Period

2. The United States Isolationism vs. Interventalism Avoiding future wars International Disarmament Conference (1922) Kellogg – Briand Pact (1928)

3. The Undoing of the US 1920’s – US the world power Technology boom, Wall Street bubble 1930’s – Crash, economic ruin FDR’s New Deal (socialism in US)

4. US in Control – 1920s US is booming during the 1920s Dawes Plan -

5. What is a Depression? A severe economic downturn High unemployment Low GDP (sum of all goods and services produced by a nation) Consumer spending, investment spending, government spending, net exports

6. The Reality of the Great Depression Hundreds of banks close which wipes out billions in savings In 1933 364,000 farms went bankrupt GDP decreased by 40% Unemployment Rate = 25%

7. Stock Market Crash Many investors margin buying Bubble developed Panic sell-off wiped out fortunes 29 October 1929 The Dow fell 40% and $30,000,000,000 lost Banks Runs – banks out of money because of margin loans – banks fail

8. A Depression Era Bank Run

9. The Great Depression

10. The Problem Feeds Itself Products such as cars and ovens are durable goods (they last a long time) As factories started to have a surplus of products, they started to lay off workers National governments begin to raise tariffs on foreign goods to protect national production

11. Unemployment

12. Agricultural Overproduction Farmers try to produce more to lower cost and spark demand Nothing but huge surpluses of crops, not worth the money even to sell Farmers lost huge amounts of money and some even burned their crops and poured out milk EVEN AS PEOPLE STARVED!

13. The Floundering Victors England Unemployment, war debts, Britain failing Strikes (army sent in to clear, end up running industries) Socialist Ramsey MacDonald PM Many fear this is the start of communism…

14. England The Labour Party gains strength in gov’t, begins to move the country toward socialism The “Irish Question”? Rise of the IRA 1922 – moderates in Ireland and Britain reached an agreement Self-governing Irish Free State

15. The Other “Winner”? France Physical/Economic and political ruin 50% of all 18-32 year olds dead Socialist Leon Blum new PM Fascists rising… Terrified of Germans, built the Maginot Line