THE GREAT DEPRESSION 1929-1939

BACKGROUND: CAPITALISM What were the major underlying beliefs of the capitalist economic model? What was the role of government in a capitalist economy? What was the rationale for this role of government? What are the potential problems with this?

BACKGROUND: CAPITALISM In a capitalist system: What ensures the success of the economy? How can people get help in times of need?

WHAT LED TO THE GREAT DEPRESSION? Initially, Europe was devastated by WWI and took a few years to get back on their feet- especially Germany and Austria, who had to pay war reparations to the Allies The US, however, entered a post-war boom marked by increased consumerism and optimism. People began buying more things, and now people could use credit to purchase those goods. Question: What’s the problem with using credit to buy things?

WHAT LED TO THE GREAT DEPRESSION? The 1920s were known as the “Roaring Twenties” in the USA because of a productive economy and flourishing culture (consumerism, Hollywood, jazz, flappers) However, by 1929, this would all come to an end. Why? What underlying factors led to the end of this prosperity?

WHAT LED TO THE GREAT DEPRESSION? CAUSES OF THE GREAT DEPRESSION: Overproduction (both industrial and agricultural production) = not all products are being sold Income inequality (poor workers could not afford many consumer goods) Unstable banking system (banks were not collecting money from loans they gave out, people pulled their money from banks= bank closures) Reduced foreign demand, weakened international credit and trade = less trade Stock market speculation and buying on margin= inflated stock values; when people discovered this, they sold their stocks in large numbers= crash in 1929 Lack of diversity in investment= too much reliance on certain industries/activities Lack of government oversight =failure to foresee and prevent No safety net or backup plan in place = many people lost everything

GLOBAL EFFECTS OF THE GREAT DEPRESSION How were the following world regions affected by the Great Depression? Western Europe Soviet Union USA European colonies in Africa and Asia Latin America

GLOBAL EFFECTS OF THE GREAT DEPRESSION How were the following world regions affected by the Great Depression? Western Europe- Hit hard- some countries embraced "democratic socialism," others turned to more radical groups such as fascists for help getting out of the Depression Soviet Union- Not really affected; the rapid industrialization brought economic growth and almost no unemployment. USA- Hit hard- spike in unemployment and poverty- resulted in the American government enlarging to try to solve the problems of the Depression (this was called FDR's New Deal) European colonies in Africa and Asia- Hit hard, as demand for commodities (agricultural products and raw materials) dropped Latin America- Also affected by a decline in demand for commodities; unemployment and social tensions led to more authoritarian governments who tried to make Latin American countries more self-sufficient (import substitution industrialization)

THE GREAT DEPRESSION IN AMERICA The United States: Franklin Delano Roosevelt's New Deal (1933-1942) featured: Massive spending on infrastructure improvement projects to get people back to work- inspired by British economist John Maynard Keynes Long-term relief programs such as Social Security, the minimum wage, and various welfare programs, creating a safety net to protect the poor, the unemployed, and the elderly Support for workers and farmers (began to subsidize farmers) Was this socialism? Why or why not?

CCOT/SYNTHESIS OPPORTUNITY How is the Great Depression still relevant today? Can you think of any developments that mirror the events that either led to or took place during the Great Depression?

CONTINUING THE ROAD TO WWII: FASCISM What led to these authoritarian leaders taking power? What do you know about fascism?

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Question How is fascism different from communism?

How does fascism compare to communism?

WHAP HW OVER THE WEEKEND Make sure you’ve read through p. 1012 in Ch. 20 (World War II) Also, you are to come up with some kind of recipe for What Makes a Fascist. With this, you need to make a recipe that includes the characteristics that make fascists distinctive. Be creative with this! You should also mention the “oven,” which is the general context in which this recipe is baked in. This needs to be a physical product (on paper)- make it look good! You can use any techniques/supplies you’d like to do this assignment. “WHAT MAKES A FASCIST” ASSIGNMENT DUE TUESDAY!