Bell Work On a half sheet of paper: Predict the condition of Germany after WWI Things to consider: Type of government in place Effects of Treaty of Versailles.

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Bell Work On a half sheet of paper: Predict the condition of Germany after WWI Things to consider: Type of government in place Effects of Treaty of Versailles Economic status Lasting peace

A Worldwide Depression

Post WWI Late 1920s – Europe was rebuilding its war-torn countries WWI left many countries bankrupt Many European nations were devastated Japan and USA come out in good shape US helped by giving out loans New, young democracies replaced the traditional monarchs in many nations. Many of them were ineffective. They will soon give up their democratic ways for a strong authoritarian leader.

What’s up with Germany? Became a democracy (“Weimar Republic”) Still humiliated and bitter Many people blame the new govt. / not the WWI leaders for the nation’s defeat and the Treaty of Versailles Didn’t pay for war by raising taxes – just printed more money To pay back reparations to Allies – printed more money Money lost value Loaf of bread in 1918 = less than a mark In 1923 = 200,000,000,000 marks America loans Germany $200 million / German economy begins to recover They met with several European nation & they all promised not to go to war with one another. Germany joins the League of Nations Kellogg-Briand Act – War will not be used as a policy tool Almost every nation in the world signed it. League of Nations had no enforcement power USA never joined the League of Nations

U.S. Financial Collapse Fed govt. kept interest rates low. Overproduction of goods and food – no one buying them Gap between the rich / poor was immense People tapped out on credit! Factories lay off workers = unemployment Farmers began losing their farms to the banks October 29, 1929 – Black Tuesday Buying on Margin Stock market crash! Banks close, people lose their savings Great Depression 1933 – 25% of Americans unemployed Over 9 million people lost their entire savings! U.S. Financial Collapse

Franklin Delano Roosevelt (D) Effects Franklin Delano Roosevelt (D) Americans demand to have their loans paid back – ASAP! World trade stopped. Tariffs placed on European goods…..that backfired! Americans stopped investing in Europe Every country hurt Franklin Delano Roosevelt – New Deal Creates jobs for the unemployed FDR becomes the leader of democracy in a world threatened by brutal dictators.

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