A Worldwide Depression

Bell-work 3/7 At the top of your Cornell Notes “notes” box, predict what you think the condition of Germany will be after WWI. How will it be a different country than it was before the war? What struggles does will it face? Write at least 3-4 sentences.

A Worldwide Depression Topic/Objective: Describing postwar conditions in the U.S. and Europe Essential Question: What were the effects of the Great Depression on different countries?

New Democracies Many countries have formed new democracies – Coalition government No more absolute rulers

Postwar Economy Late 1920s – Europe was rebuilding its war- torn countries – WWI left many countries bankrupt US helped by giving out loans

What’s up with Germany? Became a democracy- Weimar Republic Lacked democratic tradition Many political parties Germans blamed the Weimar government for the loss in WW1

What’s up with Germany? Still humiliated and bitter Didn’t pay for war by raising taxes – just printed more money To pay back reparations to Allies – printed more money Money lost value – Loaf of bread in 1918 = less than a mark – In 1923 = 200,000,000,000 marks America loans Germany $200 million – Dawes plan Kellogg-Briand Pact

Inflation gone mad! It’s hyperinflation

U.S. Financial Collapse Overproduction of goods – no one buying them Factories lay off workers = unemployment October 29, 1929 – Black Tuesday – Stock market crash! – Banks close, people lose their savings – Great Depression 1933 – 25% of Americans unemployed

Bank Run!

Effects Global depression Americans demand to have their loans paid back – ASAP! World trade stopped- Import taxes Every country hurt Franklin Delano Roosevelt – New Deal – Creates jobs for the unemployed

New Deal: Civilian Conservation Corps

On your own How did the world try to solve the economic crisis? Use page 474 and take notes on the following: – Britain – France – Socialist Countries – USA