A Worldwide Depression

1
A Worldwide Depression

• After World War I, an economic depression in the
  United States spreads throughout the world and
  lasts for a decade.
• 1920s 1930s

2
Postwar Europe

• Unstable New Democracies
• Fall of kingdoms, empires creates new democracies
  in Europe
• People have little experience with representative
  government
• Some form coalition governmentstemporary,
  multi-party alliances
• Frequent changes in government create instability

3
The Weimar Republic

• Democracy in Germany
• Weimar RepublicGermanys democratic government
  formed in 1919
• Government has serious weaknesses
• Inflation Causes Crisis in Germany
• Value of German currency falls dramatically
• Attempts at Economic Stability
• American bank loans help to revive German economy
• Efforts at a Lasting Peace
• Germany and France sign treaty pledging no more
  war
• Many nations sign a similar agreement, the
  Kellogg-Briand pact (Treaty) - No way to
  enforce!!!

4
Financial Collapse

• A Flawed U.S. Economy
• Weaknesses in American economy cause serious
  problems
• Economy Boomed in the 1920s
• But.
• Wealth is distributed unevenly
• Most people are too poor to buy goods produced -
  start buying on credit, but cant buy anymore.
• Factory owners cut back on production, lay off
  workers
• Farmers produce more food than people can eat
• Many farmers cannot repay loans and lose their
  land

5
Financial Collapse

• The Stock Market Crashes
• Stock prices soar
• Many people buy stocks on credit
• Investors begin selling stocks, which lowers
  prices
• On October 29, 1929, stock market collapses as
  prices fall very low
• Economic Downturn
• Great Depressionlong business economic slump
  of 1930s
• Marked by bank failures, loss of savings,
  unemployment
• A Global Depression
• American economic problems create problems in
  other countries
• World trade falls sharply
• Nations raise tariffs wanted sales by local
  businesses
• Effects Throughout the World
• Germany and Austria suffer greatly, as do Asia
  and Latin America

6
The World Confronts the Crisis

• Britain Takes Steps to Improve Its Economy
• British voters elect coalition (multi-party)
  government, avoids political extremes
• Government brings about slow, steady economic
  recovery
• Cut unemployment
• Preserves democracy by avoiding political
  extremes
• France Responds to Economic Crisis
• France has more self-sufficient economy
• Moderates and Socialists combined to form
  governments
• Preserves democracy in spite of economic troubles
• Unemployment remained high
• Socialist Governments Find Solutions
• (Sweden, Norway Denmark)
• Public works programs help Scandinavian countries
  recover
• Taxed people w/ jobs to pay for people w/o jobs

7
U.S. recovers from the Great Depression

• Recovery in the United States
• Franklin D. RooseveltAmerican president during
  Depression
• New DealRoosevelts program of government reform
  to improve economy
• Govnt created jobs by
• new projects (roads, dams, bridges buildings
• Business and farmers got help, too
• For Professional (artists, photographers,
  historians, teachers, etc.)
• The economy got better, but recovery was slow
  (took all of the 1930s until WWII)