The Great Depression The 1920s were a period of economic prosperity Europe and the United States Role of US- isolated However, the prosperity was fragile

Emerging Problems At the end of World War I, European nations owed over $10 billion to their former ally, the U.S.. Their economies had been devastated by war and they had no way of paying the money back. This forced the allies to demand Germany pay the reparations imposed from the Treaty of Versailles. All of this later led to a financial crisis when Europe could not purchase goods from the U.

Emerging Problems uneven distribution of wealth Workers produced TONS of goods, making business owners VERY rich Workers wages only rose a little bit though

American Economic Expansion during the 1920s

Consumer Debt in the 1920s

The Crash of 1929 Major selling of stocks in Wall Street Stock Market crash in Wall Street October 29, 1929 “Black Tuesday”

The Great Depression Massive shutdown of businesses Massive global unemployment in US, Europe Economic collapse threatened payments of reparations

The Great Depression Britain Coalition government formed- preserves democracy by avoiding political extremes 2.5 million unemployed by 1931 Raises tariffs Government brings about slow, steady economic recovery

The Great Depression France Social and Political Paralysis Moderates and Socialists combined to form governments Preserves democracy in spite of economic troubles

The Great Depression The United States Expanded role of federal government The New Deal under Franklin Roosevelt gives U.S. a temporary spark but Depression lingers

The Great Depression in the US and Europe