Section II: Upheaval in the West (Pages ) This section is about: This section is about: How Europe tried to rebuild after World War I and how countries looked for a permanent peace. How Europe tried to rebuild after World War I and how countries looked for a permanent peace. How the economic recovery in the 1920’s was followed by the Great Depression. How the economic recovery in the 1920’s was followed by the Great Depression. The problems faced by France and Great Britain at this time and how these democracies tried to solve their crises. The problems faced by France and Great Britain at this time and how these democracies tried to solve their crises.

What time period is this “upheaval” from? What time period is this “upheaval” from? Look at the “Main Ideas” on page 644. Look at the “Main Ideas” on page 644. In the picture on page 646, what are the men doing? In the picture on page 646, what are the men doing? Look at the graph on page 645 – even if you don’t know much about the stock market, what does the graph show (good or bad)? Look at the graph on page 645 – even if you don’t know much about the stock market, what does the graph show (good or bad)?

Rebuilding After the War In 1918, the Allies had won WWI. In 1918, the Allies had won WWI. Great Britain, France, and the U.S. were the major forces behind the peace treaty. Great Britain, France, and the U.S. were the major forces behind the peace treaty. These were all democracies, and their hope was that democracy would spread to new areas. These were all democracies, and their hope was that democracy would spread to new areas. But the war had destroyed much of Europe: towns, economies, families, etc… But the war had destroyed much of Europe: towns, economies, families, etc… Europe was hoping to have a brighter future. Europe was hoping to have a brighter future.

Problems After the War The aftermath of the war was different than people had hoped. The aftermath of the war was different than people had hoped. The Treaty of Versailles had ended the war. The Treaty of Versailles had ended the war. But, Germany was asked to pay huge amounts in reparations. But, Germany was asked to pay huge amounts in reparations. The U.S. asked people to pay back their loans from us – but how could they re-build if they paid us back? The U.S. asked people to pay back their loans from us – but how could they re-build if they paid us back? Most nations had inflation and unemployment. Most nations had inflation and unemployment. The damage from the war destroyed many factories. The damage from the war destroyed many factories. Germany couldn’t pay what it was supposed to. Germany couldn’t pay what it was supposed to. The U.S. actually ended up giving more loans to Europe and Germany (and didn’t get their money back). The U.S. actually ended up giving more loans to Europe and Germany (and didn’t get their money back).

The Search for Lasting Peace Remember, Woodrow Wilson’s 14 th Point was to form a League of Nations to keep world peace. Remember, Woodrow Wilson’s 14 th Point was to form a League of Nations to keep world peace. This did happen, and many nations began a plan of disarmament (cutting their supplies of weapons). This did happen, and many nations began a plan of disarmament (cutting their supplies of weapons).

Boom and Bust Boom and Bust Things started getting better for Europe in the 1920’s. Things started getting better for Europe in the 1920’s. Peacetime trade and production resumed. Peacetime trade and production resumed. Industrial workers were making more money. Industrial workers were making more money. People could now buy new, modern things like radios and even cars. People could now buy new, modern things like radios and even cars. After WWI, the U.S. had become the world’s greatest industrial power. After WWI, the U.S. had become the world’s greatest industrial power. We also went from being a debtor nation to a lender (and we helped out Europe). We also went from being a debtor nation to a lender (and we helped out Europe). As long as the U.S. economy was strong, the world economy would probably be okay. As long as the U.S. economy was strong, the world economy would probably be okay.

Hidden Weaknesses (there were some problems people didn’t notice right away) Better technology = increased production. Better technology = increased production. Better faming techniques = more food. Better faming techniques = more food. As supplies increased, prices dropped. As supplies increased, prices dropped. Industries began to suffer from overproduction (made too much), but kept on producing. Industries began to suffer from overproduction (made too much), but kept on producing. Many countries tried to protect their own goods by raising tariffs, but that ended up stopping most imports and exports. Many countries tried to protect their own goods by raising tariffs, but that ended up stopping most imports and exports. Loans and credit became very easy to get and banks made loans people might not be able to pay back. Loans and credit became very easy to get and banks made loans people might not be able to pay back. People wanted to find ways to make money, and at the time, the stock market seemed like a good idea. People wanted to find ways to make money, and at the time, the stock market seemed like a good idea.

Buying Into the U.S Stock Market The U.S. stock market did real well in the 1920’s. The U.S. stock market did real well in the 1920’s. Investors kept taking bigger and bigger risks. Investors kept taking bigger and bigger risks. In 1929, people realized prices could not keep rising. In 1929, people realized prices could not keep rising. Many began selling their shares to get their money back. Many began selling their shares to get their money back. So, prices dropped some. So, prices dropped some. People tried to sell more. People tried to sell more. Prices dropped some more…… Prices dropped some more……

Worldwide Economic Crises October, 1929: The start of the Great Depression: the stock market “crashed.” October, 1929: The start of the Great Depression: the stock market “crashed.” People were worried about their money, so they went to banks to try and get it. People were worried about their money, so they went to banks to try and get it. Banks don’t have all your money all at once, so some had to “close.” Banks don’t have all your money all at once, so some had to “close.” Many people lost all their savings. Many people lost all their savings. Banks that could, tried to get money back from Europe, to banks they had loaned money to – and then those European banks had to close. Banks that could, tried to get money back from Europe, to banks they had loaned money to – and then those European banks had to close. Factories need investors, and many of them had to close. Factories need investors, and many of them had to close. People lost jobs, homes, etc… People lost jobs, homes, etc… (world economic crisis: people lost everything – jobs, homes, hope, etc…)

Western European Democracies (France) France sustained more physical damage than any other European country (that’s why they got Alsace-Lorraine back in German reparations. France sustained more physical damage than any other European country (that’s why they got Alsace-Lorraine back in German reparations. Germany was also forced to pay France a lot of money and this helped their economy recover quickly. Germany was also forced to pay France a lot of money and this helped their economy recover quickly. But, France’s government and political parties had disagreements about what to do with the reparations – it caused a lot of problems for France. But, France’s government and political parties had disagreements about what to do with the reparations – it caused a lot of problems for France. People in France continued to distrust Germany though (they had invaded them a few times). People in France continued to distrust Germany though (they had invaded them a few times).

Western European Democracies (Great Britain) Britain’s government was deeply in debt after WWI. Britain’s government was deeply in debt after WWI. Many of their ships (trade) had been destroyed by German U-Boats. Many of their ships (trade) had been destroyed by German U-Boats. Unemployment was high and wages were so low, in 1926 England had a general strike (many groups all striking at once). Unemployment was high and wages were so low, in 1926 England had a general strike (many groups all striking at once). The British Empire was also beginning to lose territories at this time. The British Empire was also beginning to lose territories at this time. One of their issues was with Ireland, who wanted “home rule” and got it after a war with the IRA (Irish Republican Army) in One of their issues was with Ireland, who wanted “home rule” and got it after a war with the IRA (Irish Republican Army) in In 1931, South Africa, New Zealand, Australia, and Canada all were given full independence from the Great Britain. In 1931, South Africa, New Zealand, Australia, and Canada all were given full independence from the Great Britain.