A worldwide depression ch 15 sec 2
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A Worldwide Depression (Ch. 15, Sec.2). Problems in Postwar Europe. Most major European countries were bankrupt after WWI New democratic governments were formed in many nations (use US as example) Most nations had very little experience with the democratic process (dynasties, empires)

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A Worldwide Depression (Ch. 15, Sec.2)

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A worldwide depression ch 15 sec 2

A Worldwide Depression(Ch. 15, Sec.2)


Problems in postwar europe

Problems in Postwar Europe

  • Most major European countries were bankrupt after WWI

  • New democratic governments were formed in many nations (use US as example)

  • Most nations had very little experience with the democratic process (dynasties, empires)

  • Large numbers of political factions (parties) led to unstable governments


German women waiting to buy sub standard meat

German women waiting to buy sub-standard meat


The weimar republic germany

The Weimar Republic (Germany)

  • Most Germans blamed the Weimar Republic (democratic) for postwar humiliation

  • Competition between several major political parties caused political instability

  • Severe inflation caused money to lose its value (Germany printed money to pay war debts)

  • Dawes Plan (US investors) helped Germany’s economy recover by late 1920’s


Financial collapse in the united states

Financial Collapse in the United States

  • By the late 1920’s, America’s prosperity sustained the world’s economic system

  • An uneven distribution of wealth left most families too poor to buy new goods

  • Overproduction by most companies led to layoffs and an economic downturn

  • Farmers also overproduced and as prices dropped, many lost their farms

  • On October 29, 1929 the stock market collapsed


Squatters threw together shacks wherever they could find space

Squatters threw together shacks wherever they could find space


The great depression

The Great Depression

  • After the stock market crashed in the US (1929) many businesses closed

  • Banks simply went out of business (millions of people lost their lifesavings)

  • US problems had an impact on most of the world (many were dependent on US money)

  • Socialist governments sponsored public works projects and social welfare (it worked)

  • The US battled the Great Depression with Roosevelt’s New Deal (government reform)


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