Interwar Period The Great Depression.

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Interwar Period The Great Depression

Black Tuesday October 29, 1929 Stock Market Crash Marks beginning of Great Depression

Causes Excessive credit Overproduction on farms and in factories U.S. dominance in economy High protective tariffs European economies never fully recovered from World War I Reparations led to inflation in Germany

Results High Unemployment Bank Failures Collapse of Prices Weakened democracies in Europe Rise of fascism, including Nazi Party in Germany

Government Response President Hoover did little to help Dust bowl made situation even worse

So then what? By 1932 more than 30 million workers in industrialized countries were jobless France: Less industrialized which helped, but depression eventually hit and it caused political instability Great Britain: created jobs, raised tariffs, and formed a system of economic cooperation within its empire

FDR’s New Deal NEW DEAL Program of Relief, Recovery, and Reform Federal gov’t provided states with $$ for needy Public works programs provided jobs (ex., building Blue Ridge Parkway or WHS) Banks and stocks were regulated by gov’t Social Security Act provided benefits for unemployed and senior citizens

More Gov’t Response Labor Reforms 40-hour work-week Minimum wage Right to form unions These responses did not solve all the problems of the Great Depression.

Worldwide Impact High unemployment Bank failures and collapse of credit Collapse of prices in world trade Weakened democracies Provided opportunities for the rise of dictators (Soviet Union, Germany, Italy, and Japan)