15 2 homework review postwar world wide depression n.
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15.2 Homework Review Postwar World-Wide Depression. In new postwar democracies, there were frequent changes in government. Many citizens of the new democracies had little experience with representative government.

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in new postwar democracies there were frequent changes in government
In new postwar democracies, there were frequent changes in government.
  • Many citizens of the new democracies had little experience with representative government.
  • Some countries had many political parties, which made effective government difficult and led to the formation of coalition governments that often unraveled.
in germany the weimar republic was weak from the start
In Germany, the Weimar Republic was weak from the start.
  • Germany lacked a strong democratic tradition
  • Postwar Germany had multiple political parties
  • Many Germans blamed the Weimar government, not their wartime leaders, for the country’s military defeat and humiliation at Versailles.
postwar germany suffered from severe economic inflation
Postwar Germany suffered from severe economic inflation.
  • The German government had printed money for war expenses and reparations, devaluating the mark to the point where people needed wheelbarrows full of money to buy food.
the united states had a flawed economy
The United States had a flawed economy.
  • Uneven distribution of wealth, overproduction by business and agriculture, lessened demand for consumer goods
  • *US economic policy – not responsive to crashes!
  • Stock market speculation
on october 29 1929 the us stock market crashed
On October 29, 1929, the US stock market crashed.
  • Believing that prices would drop, investors tried to sell high-priced stocks that they had bought on margin, but no one wanted to buy.
a long depression followed the crash in the united states
A long depression followed the crash in the United States.
  • Unemployment rates rose as industrial production, prices, and wages fell
  • Businesses failed
  • Individuals lost their savings when banks closed, and farmers lost their land.
collapse of the us economy affected countries worldwide
Collapse of the US economy affected countries worldwide.
  • Some countries had war debts and were dependent on American loans and investments. Worried American bankers demanded repayment for their overseas loans, and American investors withdrew their money from Europe. American market for imported goods dropped sharply. Raising of tariffs led to decrease in world trade and market demand.
in britain the national government rescued the economy
In Britain, the National Government rescued the economy.
  • Passed high protective tariffs, increased taxes, regulated the currency, and lowered interest rates to encourage industrial growth.
in france the popular front was formed as a coalition government
In France, the Popular Front was formed as a coalition government.
  • Economic crisis in France led to political instability and leaders feared the growth of antidemocratic forces.
socialist governments in scandinavian countries dealt with the economic crisis successfully
Socialist governments in Scandinavian countries dealt with the economic crisis successfully.
  • Relied on existing tradition of cooperative community action and government-sponserd public works programs to keep people employed and producing
  • Raised pensions for the elderly and benefits for those in need.
how fdr and his new deal reformed the american economic system
How FDR and his New Deal reformed the American economic system.
  • FDR believed that government spending would create jobs and start economic recovery. FDR’s New Deal programs created jobs, offered welfare benefits, provided financial aid to businesses and farms, and reformed the stock market and the banking system. The New Deal eventually reformed the American economic system.