Bell Ringer What does the branch represent? What does the dove represent? Who is the person? What is the message of the cartoon?

EQ: How and why did the Great Depression occur?

A Brief Period of Prosperity Some countries, like the U.S., were strong during the post-WWI era What is this time period known as in U.S. History?

Failure at Versailles The League of Nations is weak Countries won’t disarm Why might that be the case? No U.S., Germany, or Soviet Union Why would this make it weaker?

Failure at Versailles Treaty of Versailles punished Germany too harshly Billions in reparations

Problems in Germany Hyperinflation occurs in Germany German money becomes worthless (prices rise, each unit of currency buys fewer goods and services)

Hyperinflation means Germany can’t pay reparations If Germany can’t pay reparations, G.B. and France can’t pay war debt to the U.S. U.S. lends Germany money to make reparations and in turn gets paid war debt

U.S. Overproduction / Consumption Better technologies allowed factories to produce faster and more efficiently -> overproduction (supply outpaces demand) Expansion of credit -> people start to buy with money they don’t have

Stock Market Crash of 1929 U.S. Stocks soared in the 1920s People bought stock on margin The buyer pays partial value and borrows the rest of the money. When stock prices dropped people sold their stocks and stock prices crashed

Why was the stock market crash such a big deal?

Results of the Great Depression Economies collapsed around the globe Unemployment, bank failures, collapse of credit, collapse of prices in world trade Governments struggled to deal with the crisis Communist parties grew (Why?) Dictators who offered simple solutions in exchange for power appeared in some countries (Hitler)

Essential Question How and why did the Great Depression occur?

Cause 1 Cause 2 Cause 3 Explanation of Cause 1 Explanation of Cause 2 Explanation of Cause 3 Illustration of Cause 1 Illustration of Cause 2 Illustration of Cause 3