Global Depression 15-2.

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Presentation transcript:

Global Depression 15-2

Effects of WWI Great War leaves Europe bankrupt U.S. and Japan came out in better shape

New Democracies European nations - little experience with democratic government Germany – Weimar Republic

Coalition Government Temporary alliance of several political parties to form a parliamentary majority

Weimar Republic Blamed for WWI losses War and reparations bankrupt Weimar Republic – answer = print more money = inflation Bread: 1918- less than 1 mark 1922 160 marks 1923 200 billion marks

Dawes Plan $200 million loan from American banks to stabilize the economy of Germany

Kellogg-Briand peace pact Most of world signs peace pact No way to enforce – League of Nations weak (no U.S.)

U.S. Economy 1929 – 3 flaws uneven distribution of wealth overproduction by business and agriculture demand for consumer goods down.

Great Depression People can’t afford goods = stores cut back on orders = factories cut back on production = layoffs = cycle

Oct 29th 1929 Wall Street – Financial capital of World (NYC) Buy stocks on margin. Downward slide –everyone selling nobody buying

Great Depression Businesses fail = people can’t pay bank loans = banks close (no $) = people lose all $ in banks Farmers lost lands 1933 ¼ of all American workers had no jobs

Global Depression American bankers demanded payments of overseas loans High tariffs (taxes) World trade down 65%

Global Depression U.S. can’t invest and loan to world Germany & Austria hurt

World Responds Britain, France, Denmark, Sweden and Norway restructure and eventually come out ok = preserve democracies

Recovery!!!! DOES NOT believe in Laissez Faire 1932

The New Deal Government helps the people Welfare Jobs- garbage, bridges, street cleanup Confidence and $ Shows great democracy

Franklin D Roosevelt

Black Tuesday- Stock Market

Unemployment Lines

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