Learning Objective: Today I will be able to identify the problems in the world depression after WWI by filling out a bonefish sheet. Agenda Learning Objective.

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Presentation transcript:

Learning Objective: Today I will be able to identify the problems in the world depression after WWI by filling out a bonefish sheet. Agenda Learning Objective Lecture Notes: Ch. 15.2 World Depression Bonefish Exit Slip

Title Notes: Ch. 15.2 World Depression Unstable economy in Europe after WWI But, U.S. is prospering, 1920s.

VS Unstable New Democracies in Europe Last rulers/kings in Europe overthrown, 1914-1918. For generations kings & emperors have always Ruled, Germany & countries created from Austria-Hungary. Even Italy, France, & Great Britain were monarch. Little experience with democracy. VS

Too many frequent changes in gov. during economic crisis. Coalition Government Temporary alliance of several parties Too many political parties in Europe Short-lived b/c of too many disagreements. Too many frequent changes in gov. during economic crisis.

Ppl. willing to sacrifice democracy for stability. Opens door for authoritarian rule.

Weimar Republic New democratic gov. in Germany, 1919 Blamed for German’s WWI defeat & humiliation.

Inflation in Germany Printed money to pay France & GB Money owed to France & GB as stated in Treaty of Versailles Value of mark (German currency) declined greatly. In 1922 bread cost was less than a mark, but cost increased to 10 marks in 1923 and up to 200 billion marks by 1928. The hyperinflation of 1919-1923 made Weimar Republic money virtually worthless.

Dawes Plan Kellogg-Briand $200 million loan to Germany from American banks. Charles Dawes, American banker. Stabilize German currency & economy 1929, Germany stabilized Kellogg-Briand Peace pact between European countries to “renounce war” Peace treaty between France/GB (Great Britain) & Germany

Great Depression in the US leads to world crisis US sustained the world economy Weakness of US economy: Unequal distribution of wealth Top 5% rich owned 33% of income Americans buying less Credit/loans Overproducing crops & debt Tariffs/Quotas Buying at the margin stock market/speculation US demanded money back from Europe Quotas/tariffs: tax on imported goods. Chain reaction of quotas/tariffs World trade dropped by 65% Depression felt in Europe & Latin America.

YouTube: The Depression & Germany People stood outside in line, for what? According the video, which country was affected the most from the world economic crisis? How did things get worse? https://www.youtube.com/watch?v=EV4v5OVK95E

France & GB Solutions to Crisis Great Britain: High tariffs & taxes, regulate currency, lower interest rates, & avoid extreme politics. By 1937, unemployment decreased about 50% & production rose above 1929’s levels. France: formed coalition gov. of moderates, socialists, & communist, known as Popular Front. Despite political instability, France preserved democracy. Socialist solutions: Scandinavian countries ( Denmark, Sweden, & Norway) : Create jobs through public work projects Raise pensions for elderly Subsidies for housing, welfare, unemployment insurance. US: New Deal: Large public works projects to create jobs, welfare, & loans to farms/businesses. Franklin D. Roosevelt preserved democracy.

Bonefish List 6 factors/causes that led to the worldwide depression.

Exit Slip In your opinion, which cause of the World Depression was the biggest cause? Why?