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I nflation Simulation

This resource delves into the concepts of inflation and the Great Depression. It explains inflation as a rise in prices and a decline in the value of money, illustrated by hyperinflation in Weimar Germany. It also explores the long-term causes of the Great Depression, including massive debts from World War I, credit use, and overproduction. Immediate effects, such as unemployment and loss of faith in democracy, are discussed, along with the long-term repercussions that shaped global politics. Engaging group questions are included for deeper analysis.

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I nflation Simulation

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  1. Inflation Simulation

  2. Prices • Rent 2 Skittles • Food 1 Skittle • Utililties 1 Skittle • Incidentals 2 Skittles

  3. New Prices • Rent 40 Skittles • Food 30 Skittles • Utilities 30 Skittles • Incidentals 20 Skittles

  4. Newest Prices • Rent 4000 Skittles • Food 4000 Skittles • Utilities 4000 Skittles • Incidentals 3000 Skittles

  5. What is Inflation? • The word `inflation' describes a situation in which prices are rising and the value of money is falling.

  6. Hyperinflation in Weimar Germany

  7. Invasion • Late in 1922 Germany failed to pay an instalment of reparations on time. • French troops occupied Germany's main industrial region, the Ruhr. • They wanted to keep Germany weak. • A weak Germany meant that France was safe from the threat of attack.

  8. German Response • Workers go on strike because they know it will just benefit the French • All the workers on strike had to be given financial support. • The government paid its way by printing more and more banknotes. • Germany was soon awash with paper money. • The result was hyperinflation.

  9. Rich Kids?

  10. Play Time

  11. Fuel

  12. Street Sweeping

  13. Group Scenario Questions • Work on the following questions in your group. • You only need one piece of paper in the group.

  14. THE GREAT DEPRESSION

  15. LONG-TERM CAUSES • Huge debts resulting from the costs of World War I • Widespread use of credit • Overproduction of goods while demand was falling • Rising wages for industrial workers while farm earnings were falling

  16. IMMEDIATE CAUSES • New York stock market crash ruins investors • Banks demand repayment of loans • Without capital, businesses and factories fail

  17. IMMEDIATE EFFECTS • Vast unemployment and misery • Loss of faith in democracy and capitalism • Authoritarian leaders gain support

  18. LONG-TERM EFFECTS • Nazis take control of Germany • Fascist leaders gain support in Eastern Europe • Governments experiment with social programs • People blame scapegoats for economic woes • World War II begins

  19. Great Depression in the US Video

  20. Great Depression Reading

  21. Great Depression Questions • Add your group’s answers to the following questions to the back of your Scenario. • How did the Great Depression affect his childhood? • How did it affect his community? • What did they do for entertainment? • How did his life change when the Depression ended? • How does the depression continue to shape his life?

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