1 / 15

Great Depression

Great Depression. Background and causes. The war is over. Europe is in ruins Countries are nearly bankrupt There is a great deal of uncertainty The US and Japan are doing well Neither had been a wartime battlefield Their influence rose after WWI. Unstable Democracy.

della
Download Presentation

Great Depression

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript


  1. Great Depression Background and causes

  2. The war is over • Europe is in ruins • Countries are nearly bankrupt • There is a great deal of uncertainty • The US and Japan are doing well • Neither had been a wartime battlefield • Their influence rose after WWI

  3. Unstable Democracy • New Democracies in Europe • Russia (provisional government) • Germany (Weimar Republic) • Problems lead to instability • No democratic tradition in some countries • France and Italy had many political parties

  4. Democracy in Germany • Weimar Republic • Created in 1919 • 1st democracy in Germany • Major problem • Many Germans were angry with the Weimar for signing the Treaty of Versailles

  5. Economic Crisis • Background • During the war, Germany printed more money to pay the costs of the war reparations. • Inflation • Definition: when the value of a currency drops and prices go up • Suddenly, German marks became worthless

  6. Attempts at Economic Stability • Dawes Plan • Began in 1924 • $200 million in loans from the US to Germany • Designed to stabilize the currency and strengthen the economy • By 1929, Germany had recovered

  7. Efforts at a Lasting Peace • Germany in the League of Nations (1925) • France and Germany agree never to fight each other again

  8. The ‘Roaring 20s’ • Good times • Easy money: corruption scandals, shady business tycoons, and gangsters • Big Band music, dance clubs • Athletes become major celebrities • ‘A Return to Normalcy’ • The economy seemed strong • War was a distant memory

  9. Flaws in the US Economy • Distribution of income • A wealthy elite kept most of the profits • Overproduction • Too much production = lower prices • Lower prices = less profit • Unpaid debts • Many farmers could not sell their crops • As a result, banks could not collect debts

  10. The Rise of Totalitarianism

  11. Desperate Times... • Global Economic Depression • Rising unemployment & falling production • Growing inflation destroyed savings • Failure of moderate governments • Many democratic governments were unable to deal with the crisis • Russia (provisional government) • Germany (Weimar Republic)

  12. …desperate measures • Radical solutions • Many stocks became worthless • Some of the world’s wealthiest people saw their fortunes disappear • Strong leadership • 9 million people lost their savings • Many farmers lost their land

  13. The Depression Begins • Unemployment • Factory production dropped by 50% • Less production meant fewer jobs • By 1933, 25% of Americans and Canadians had no job • The Vicious Cycle • Less money available = fewer purchases • Fewer purchases = less money available

  14. Tariffs Affect Global Trade • Tariffs • Definition: fees charged on goods produced in other countries • The US tried to protect its own industries by making imports more expensive • Global Trade drops • Other countries increased their tariffs • Global trade declined by 65%

  15. A Global Depression • Europe • Austria’s largest bank failed • Latin America • Many countries could not sell their products • Asia • Crop failures led to famine

More Related