Depression Causes

A B C E/A D

US Economy WWI20sDepressionNew DealWWII There was a huge increase in war goods needed to fight WWI. The drop after WWI was slightly recovered during the 20s because of ads, the car and credit. During the Depression, the economy suffered a decline and a slight recovery during the New Deal. However, the real recovery was WWII. Thus the New Deal FAILED !

Directions: Think about the possible outcomes of each scenario. Would the scenario cause an economic increase or decrease and why?

WWI is Over

Inflation causes prices to go up so the government tightens up credit

Removal of money from the economy

European nations rebound after WWII and can now produce needs and wants on their own

Credit

Ads

Surplus Up and Wages Down

Banks Closing Down and Not Distributing Deposited Money

Americans Start to Save Money In their Homes

Americans Lose their Jobs

Stock Market Crash Causes American Companies to Lose Capital

The Ferris Wheel: to understand this section you must remember WWI and the loans to European Nations. During the war, American banks lent money to the Allies. The Allies then used that money to buy American war related war goods. That is the reason for the Allied Powers demanding German reparation payments. US loans money to the Allied Powers Germany pays reparations Allies receive money from Germany to pay back Americans

How did Germany pay during the 20s?

US loans money to the Allied Powers Germany pays reparations Allies receive money from Germany to pay back Americans US lends money to Germany

Stocks During the Depression You all have to either: 1.Buy stocks 2.Save your money 3.Put it in the bank

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