Great Depression

Causes German reparations (war payments) Overproduction – high supply + low demand = low prices for farm goods and manufactured goods

Causes Protective Tariffs – countries passed tariffs (taxes on imports) to make people buy goods produced and food grown in their country (foreign goods were more expensive) Buying on credit (buy now and pay later)

Causes Stock Market Crash (October 1929) a. Eager investors (people who buy stock in companies) bought stocks on the “margin” – paid only part of the cost and borrowed the rest from brokers

Causes Stock Market Crash (October 1929) b. Stock prices began to fall  Brokers (people who help others buy and sell stock) called in loans (wanted investors to pay back the money that they borrowed to buy stocks)

Causes Stock Market Crash (October 1929) c. Investors were unable to pay back loans – value of stock had decreased dramatically ($300 to $30 a share) d. People lost most if not all of their money

Collapse of the Banking Industry Banks close – banks also invested in the stock market and lent money to people who could not repay them (millions of people lost their money and accounts) Run on a Bank

High Unemployment/Businesses Closed Collapse of banking industry causes people to buy less (people do not have a lot of money) Many people are jobless, homeless, and penniless Low demand = low supply of products – factories reduce production and layoff more workers (high unemployment)

Great Depression Longest and worst economic crisis Personal Accounts of the Great Depression

Great Depression

Great Depression

Great Depression

Great Depression

Rise of Dictators Growth of Nazi Party and Adolf Hitler in Germany – blaming German Jews for the Depression Growth of Fascists Party and Mussolini in Italy Tojo’s rise to power in Japan and growth of militarism Mussolini Speech