Post World War I

Post-War Problems Immediately after WWI the largest problem was finding jobs for returning veterans and rebuilding war-ravaged lands Many nations owed huge debts because they borrowed money to pay for war

The Russian Revolution of 1917 unleashed fears of the spread of communism Europe lacked strong leadership

Pursuing Peace The Kellogg-Briand Pact of 1928, signed by almost every independent country, renounced war an instrument of national policy. There was no way to enforce the Kellogg-Briand Pact. Also, The League of Nations was powerless and had been damaged by America’s refusal to join.

Why would Japan want to invade Manchuria?? In 1931, Japan invaded Manchuria but the League was too weak to respond. Why would Japan want to invade Manchuria??

Recovery and Collapse During the 1920’s Europe had made a shaky recovery. Economies returned to peace time manufacturing and trade Veterans gradually found jobs. Middle-class families found money to buy new products like cars, refrigerators and radios.

The U.S. emerged from the war as the leading economic power. American banks and business controlled the global economy American loans and investments backed the recovery of Europe.

There were weak spots Overproduction. Despite the slowing demands for goods, factories kept producing The Crash Investors in the U.S. bought stock on the New York Stock Exchange on margin. This meant that they borrowed money from brokers to pay for part of their stock purchases.

In the fall of 1929 brokers called these loans and many were unable to repay. Financial panic set in. Stock prices crashed Because of the crash, American banks stopped making loans and demanded repayment.

American banks and businesses closed, leaving many unemployed American banks and businesses closed, leaving many unemployed. These people couldn’t afford goods, so more factories closed, which caused increase unemployment.

The misery and hopelessness created fertile ground for extremists who promised radical solutions (ex. Hitler)

How will this effect Germany??? The Maginot Line The Maginot Line was a series of massive fortifications built by France along the German border France insisted on strict enforcement of the Versailles Treaty and complete payment of reparations, hoping to weaken Germany’s economy. How will this effect Germany???

Question What made America different? Why didn’t a totalitarian dictator take over the United States during the depression?