The World in Prosperity and Depresssion

1920s in Europe European nations were in trouble after WWI. Too much inflation of money  Loss of jobs Unbalanced economies. Germany felt like the Treaty of Versailles caused their economic problems. Loss of production jobs Heavy strain on national expenses

1920s in the USA After the war, the US became the world’s greatest economy. Why? Americans began buying consumer goods & cars. New appliances like toasters, vacuum cleaners, and refrigerators became available & desirable. Very exciting to women! Many people began going to movie theaters, attending parties/dances, and listening to radio programs. Describe life in the 1920s based on this information.

The Roaring 20’s Party, party, party! Excitement! Fun! Young & Free! https://www.youtube.com/watch?v=IgcuBOVMGsg

Political Changes in the 1920’s Women finally received the right to vote! USA 1920 UK 1928 Legalized because there was a decline in the number of male voters, and politicians saw the popularity power in winning the female vote. But in Europe during the 1920s, the Socialist Party was on the rise, effecting the governments and economies of Europe.

The Great Depression Stocks tumbled and no one could stop it. Banks began calling in their loans. The entire world entered into a depression, or economic downturn, in which businesses fail and people are unemployed. Oct 29, 1929: Stock Market Crash started a chain reaction in the world’s economy. As many as 40 million people were unemployed in the United States. 25% of working age population March 2017 10.9 million people 4.5% http://www.ncsl.org/research/labor-and-employment/national-employment-monthly-update.aspx

What Factors Caused the Great Depression? Loans and debts between Europe and America ensured that the recession spread. Stock Market and real estate speculation (borrowing money to make a quick profit) World leaders reacted poorly and out of fear: such as tightening of credit, stopped spending, and cut off international trade. No safety net for citizens such as unemployment insurance or social security Over production of consumer and agricultural products

Inflation

The Dust Bowl Where? Why? The Great plains region of America. TX & OK panhandles, Kansas, Colorado, and New Mexico. Why? Drought (no rain) struck between 1934-1937. The soil did not have a strong root system to anchor grass and other plants. Incredible winds picked up the loose soil and created “dust storms” that were very powerful.

Trying to End the Great Depression Pres. Herbert Hoover’s “hands off” approach was not working. The idea was to let the economy naturally rise on its own. However, unemployment and over production proved too overwhelming for natural economics to resolve the issue. Herbert Hoover, 31st President (Republican). Tried to enact reforms and laws to aid the depression, but a heavy conservative and capitalist Congress out-voted most of his attempts.

Trying to End the Great Depression Relief, Recovery, Reform 1932: Franklin D. Roosevelt (FDR) was elected the 32nd President. Instituted was he called the New Deal programs. They were meant to increase government involvement and help the American people recover from the Great Depression. Franklin D. Roosevelt, 32nd President (Democrat)

Trying to End the Great Depression 1933: Ended Prohibition Paid farmers to leave their lands fallow so they could become healthy again. WPA – Jobs for the unemployed to build public buildings, schools, bridges, etc. 1935: SSA – Allows people to save up money for retirement, disability, or tragedy. 1935: AFDC/TANF – Provided money for families with low or no income.  2011 = $927 billion per year on welfare. 2016 = $1,032 billion per year on welfare. http://www.usgovernmentspending.com/welfare_spending Franklin D. Roosevelt, 32nd President (Democrat)

Trying to End the Great Depression EVERY SINGLE NEW DEAL PROGRAM was met with mixed approval & disapproval. FDR was criticized for over stepping his bounds as the President into private business and control of citizens’ lives. There is NEVER a single solution to a problem. Franklin D. Roosevelt, 32nd President (Democrat)