1. So what do we do now that the war is over???? Many people assumed that Europe and the world were about to enter a new era: 1.) international peace – (not sure how to maintain it) 2.) economic growth – revival gave way to inflation 3.) political democracy – Great Depression gave rise to dictatorial regimes (Germany, Russia, Italy)

2. Uneasy Peace, Uncertain Security Peace settlement at the end of WWI tried to fulfill dreams of nationalism by creating new boundaries and new states. ~ Border disputes poisoned relations in eastern Europe for years ~ Germans vowed to revise the terms of the Treaty of Versailles Kellog-Briand Pact- a pact to help assure peace; "renounce war"; 63 countries signed, which produced a false sense of assurance

3. WWI Map Post WWI Map

4. Weak League of Nations!!!! League of Nations- set up to hold Countries accountable and keep the peace. Major Problems: 1.) United States did not join the League because most Americans did not wish to be involved in European affairs. (weakened the League) 2.) League could only used economic sanctions and not military force to stop agression.

5. Repairing the French Between 1919 and 1924, desire for security led the French government to demand strict enforcement of the Treaty of Versailles. Tough French policy toward Germany for reparations- payments for damage they had done in the war 33 billion US dollars payable as 2.5 billion per year. (Made first payment in 1921

6. More Problems for Germans 1.) German government unable to pay debts. France occupied Ruhr Valley (Germany’s chief industrial and mining center. 2.) Workers went on strike and German government paid their salaries by printing more paper money (inflation) 1914 – 4.2 marks = 1 US dollar 1923 – 130 billion marks = 1 US dollar

7. How would Germany fix it? The Dawes Plan: American banker suggested 3 things: 1.) Reduce German reparations. 2.) $200 million loan for German recovery 3.) Heavy American investment in Europe- prosperity from 1924 – 1929.

8. The Great Depression What makes a depression? (Recession vs. Depression) Recession- When your neighbor loses their job. Depression- You and your neighbor lose jobs. So what was the Great Depression? The worst economic disaster of the 20 th century!

9. How bad was the Great Depression? Causes: 1) production of goods, 2)buying on margin with the US Stock Market Bank depositors lost confidence  bank runs Loss of reserves  banks reduce loans and deposits (causing money stock to fall) Reduced spending  lay-offs (increased unemployment), falling prices (deflation) and lower output.

10. How bad Part 2 U.S. and Britain: 25% unemployment; Germany: 40% unemployment increase in government activity in economy increased enthusiasm for the Marxist doctrine (socialism) desire to follow leaders with simple answers (Hitler = Germany; Mussolini = Italy; Russia = Stalin)

11. US Recovery FDR and the New Deal 3.) New Deal Programs- Social Security, WPA (built bridges, roads, airports, and buildings), and AAA (controlled production and found better ways for growing crops) 2.) Policy of government intervention designed to improve the economy 1.) Restored confidence in banking system (FDIC)

12. France Recovery France become strongest power in Europe France’s more balanced economy helped them not feel the depression until 1932 Popular Front started programs for workers similar to FDR’s New Deal. Collective Bargaining- workers rights to unions, 40-hour work week, two –week paid vacation and a minimum wage

13. Britain Recovery Labour Party failed to solve economic problem. Conservative government – unemployment benefit system that paid on need rather than contribution levels. Withdrawal from gold standard- reduced interest rates from 6% to 1%- exports became competitive in world markets (slow economic recovery)

14. German Recovery The Weimar Republic was created after WWI. No outstanding leaders – Paul von Hindenburge elected president at 77 (appointed Hitler later) Middle class fall pushed people to hostile political parties. Fear of the Republic and the rise of extremist parties (Hitler’s Nazi Germany)

15. So where does tomorrow take us? 1.) How Hitler rises to power in Germany? 2.) What Mussolini does in Italy that causes them to join in the next world war? 3.) Don’t forget that dictator Stalin in Russia… 4.) Remember Japanese Imperialism? They want to play next time too…