“THE Collapse and Recovery of Europe” The Great Depression AP World History Chapter 21 “THE Collapse and Recovery of Europe” (1914-1970s)

Industrial Capitalism Benefits: Created the most substantial economic growth in the 19th century Provided opportunities for wealth and social advancement Problems: Promoted individualistic materialism Created vast social inequalities Unstable system  cycles of boom and bust, expansion and recession

19th Century Japan Bellwork Why did Japan open up the West in the 1850’s? The arrival of the U.S. Navy What are two way the Japanese government helped bring about industrialization? Build Infrastructure, open factories, open other enterprises(coal, iron, ect)

WWI Bellwork What are three adjectives you would use to describe Trench warfare? Answers Vary What were two punishments given to Germany by the Treaty of Versailles? Total responsibility for war, War reparations, Give up ALL colonies, Loose territory in Europe, Disarm

Objectvie WWBAT: Introduce the causes of the Great Depression and government attempts to respond to the economic crisis WWBAT: Gather information on the rise of Totalitarian Dictators

Interactive Notebook Set Up 4/25/2016 The Great Depression This will be one page

Interactive Notebook Set Up 4/25/2016 Russian Revs Chart This will be one page

Lead up to the Great Depression Capitalism Challenged The New Deal

Problems in Germany The punishment of Germany goes too far and cripples their post-war economy in 1923 Hyperinflation occurs German money is worthless (when the general price level rises, each unit of currency buys fewer goods and services)

Lead up to the Great Depression U.S. was physically untouched by WWI 1920s farms and factories were producing more goods than could be sold Unequal income distribution in U.S. meant many Americans did not have enough money to buy these products Line to a Soup Kitchen

Lead up to the Great Depression Many European countries could not afford to buy these goods either Germany and Austria had to make reparations payments and needed U.S. loans to make them Britain and France were in debt to the U.S. from money they borrowed during WWI Europeans began producing their own products again as their economies recovered This reduced demand for American products

Lead up to the Great Depression Countries and colonies dependent on 1-2 products could be hit hard by economic issues These areas were hit especially hard by the Great Depression Example: Chile = dependent on copper exports  value of its copper cut by 80% Cocoa farmers in Ghana = badly hurt as prices of “luxury” and “commodity” goods dropped

Lead up to the Great Depression October 1929 the U.S. stock market crashed Stock prices plummeted “Paper” fortunes were wiped out Banks and businesses closed People lost their savings World trade dropped 62% in a couple of years People lost their jobs causing unemployment tosoar

The New York Stock Exchange in October, 1929

Why was the stock market crash such a big deal?

The Great Depression Emergence of: Vacant factories Soup kitchens Bread lines Shantytowns Homeless people and beggars

The Great Depression Worldwide phenomenon Spread from America to Europe and beyond Lasted about 10 years A Run on a Bank in Berlin

Capitalism Challenged Major result of the Great Depression capitalist countries were challenged and criticized Capitalist countries claimed the economy would regulate itself and self-correct if any problems arose But this wasn’t happening during the Great Depression

Capitalism Challenged Some countries became interested in communism and looked twice at the Soviet Union Many Western European countries adopted “democratic socialism” Caused many nations to turn to greater government regulation of the economy and a more equal distribution of wealth through peaceful means and electoral politics

The New Deal Franklin D. Roosevelt’s New Deal Program (1933-1942) Combination of reforms designed to restart economic growth and prevent problems in the future There was heavy government investment in projects dams, highways, bridges, parks, etc. Created social security system Federal minimum wage

The New Deal Various relief and welfare programs to aid the poor, unemployed, and elderly Support for workers and labor unions Government subsidies for farmers to encourage more production Creation of new government agencies to help supervise the economy