Bellringer 1. Look at the Following Political Cartoon on the New Deal 2. Make inferences on what the cartoon is trying to state.

Reasons for Insecurity A weak League of Nations Wasn’t effective in maintaining peace To weak U.S. never joined, wanted to stay out of European affairs French Demands Wanted strict enforcement of Treaty of Versailles 1 st reparations- Germany forced to pay $33 billion $2.5 Billion annually (began in 1921)

Reasons for Insecurity Financial problems led to French occupation of Ruhr Valley (Ger. Industrial and mining center) Inflation in Germany Germany had experienced inflation toward end of WWI German gov’t printed more money to pay salaries of workers (increased inflation) German mark went from 4 marks to $1 U.S. in 1914 to 130 billion marks to $1 U.S. in Nov. 1, 1923 (4.2 trillion marks by end of Nov.)

Dawes Plan International commission produced plan for German to pay reparations Called The Dawes Plan (Charles Dawes) Made payments affordable for Germans Granted $200 million loan for German recovery Allowed for brief period of prosperity in Europe

Charles Dawes

Peace Treaties? Pacts? Treaty of Locarno Signed in 1925, between Germany and France Created a false sense of peace Kellogg-Briand Act 63 nations signed this Stated they “would renounce war as an instrument of national policy” Neither of these limited production of weapons of war

The Great Depression Brief period of European progress ended with the Great Depression Period of low economic activity and rising unemployment Causes of: 1. Series of downturns in the economies of individual nations in the 1920’s Ex. Price of crops falling due to overproduction 2. International financial crisis 3. U.S. Stock Market Collapsed

Effects of the Depression Increase in Unemployment In 1932, in Britain 1 in 4 were employed 6 millions Germans 40% of labor force were out of work

Response to the Depression European Gov’ts didn’t know what to do: Wanted to cut spending Limited wages and put tariffs on goods Effects of Depression 1. Increase of gov’t activity in the economy 2. Communism became more popular 3. Led people to follow political leaders who offered simple solutions for dictatorial power

Democratic States After War In 1919, most European states were democratic Germany Created Weimar Republic (gov’t est. after WWI) Paul von Hindenburg was elected pres. In 1925 W.R. experienced serious economic problems Inflation Followed by Great Depression Led to extremist party takeover (Nazis and Hitler)

Paul von Hindenburg

Democratic States After War France Became strongest power on European continent Had more balanced economy didn’t feel effects of Great Depression until 1932 Popular Front Gov’t formed in 1936, started French New Deal Gave workers rights such as collective bargaining 40 hour work week, 2 week paid vacation, and a minimum wage

Democratic States After War Great Britain Unemployment rose after WWI British people blamed the Labour Party Were replaced by Conservatives Brought Britain out of Depression through balanced budgets and protective tariffs

Democratic States After War John Maynard Keynes- General Theory of Employment, Interest, and Money Stated gov’t should get involved to help economy unemployment=a decline in demand of goods Increase employment=increase in demand Gov’ts should do this even if it forced them to engage in deficit spending

John Maynard Keynes

Democratic States After War United States Most effected by Great Depression 12 million unemployed by 1933 Franklin Delano Roosevelt won presidential election of 1932 Constructed New Deal Policy Established Works Progress Administration in 1935 (WPA) Began U.S. welfare system and passed Social Security Act in 1935 Provided pensions and unemployment insurance Brought some change, but only ended with WWII

Franklin Delano Roosevelt