The Great Depression Warm Up: Review Treaty of Versailles

Objective Students will: Standards Evaluate the causes of the Great Depression Analyze and describe the global effects of the Great Depression and a cause to WWII, including unemployment, inflation, and the downturn in trade Standards W.37 Describe the collapse of international economies in 1929 that led to the Great Depression, including the relationships that had been forged between the United States and European economies after World War I. (E, H) W.38 Gather information from multiple sources describing issues of overproduction, unemployment, and inflation. (E, P)

A Worldwide Depression Unstable New Democracies Fall of kingdoms, empires creates new democracies in Europe People have little experience with representative government Coalition governments—temporary, multi-party alliances Frequent changes in government create instability

The Weimar Republic Democracy in Germany Weimar Republic—Germany’s democratic government formed in 1919 Government has serious weaknesses Inflation Causes Crisis in Germany Value of German currency falls dramatically (hyperinflation) Attempts at Economic Stability American loans help revive German economy Efforts at a Lasting Peace Germany and France sign treaty pledging no more war Many nations sign a similar agreement, the Kellogg-Briand pact Germans kept printing money to pay for war--- inflation

US Economy in the 20s https://www.youtube.com/watch?v=NvtsYZjL-wI

Roaring 20s Run Out of Steam Coal, RR, & Housing on the decline Farms struggled w/o gov’t price supports Credit bubble burst Consumer debt, stock mkt, no savings

Financial Collapse A Flawed U.S. Economy Weaknesses in American economy cause serious problems Wealth is distributed unevenly Most people are too poor to buy goods produced Factory owners cut back on production, lay off workers

Stock Market Crash Stock prices soar; many people buy stocks on credit Investors begin selling stocks, which lowers prices Black Tuesday (Oct. 29, 1929) NYSE $30 million disappeared in one day Savings lost; Debt Sept-Dec.: $40 billion lost

The Great Depression Economic Downturn Great Depression—long business slump of 1930s Marked by bank failures, loss of savings, unemployment By 1933, over 25% of Americans were unemployed (50% of African Americans were unemployed) A Global Depression American economic problems create problems in other countries World trade falls sharply Effects Throughout the World Germany and Austria suffer greatly, as do Asia and Latin America

Slowdown in trade 1930, President Hoover signed the Smoot-Hawley Tariff Act – out heavy taxes on imported goods Attempt to encourage Americans to buy goods/products made in the U.S.

Many waited in unemployment lines hoping for a job.

People in cities would wait in line for bread to bring to their family.

Some families were forced to relocate because they had no money.

Photo Analysis

The World Confronts the Crisis France Responds to Economic Crisis France has more self-sufficient economy Preserves democracy in spite of economic troubles Socialist Governments Find Solutions Public works programs help Scandinavian countries recover Recovery in the United States Franklin D. Roosevelt—American president during Depression New Deal—Roosevelt’s program of government reform to improve economy

Circumstances That Produce Dictators Poverty + Instability (pol/econ) Unemployment ______________________ Dictator

Prediction Write FIVE sentences explaining you prediction as to whether or not the Great Depression was a cause for WWII.