3.24.10 Agenda. 1. Drill – Based on what you know about the end of WWI and the Treaty of Versailles, what are three things that might have gone wrong.

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Presentation transcript:

Agenda

1. Drill – Based on what you know about the end of WWI and the Treaty of Versailles, what are three things that might have gone wrong in Europe or the United States in the 1920s and 1930s? 2. Homework – – do not outline, just jot down a few important details about Germany, France, Britain and the US.

17.1 The Futile Search for Stability I. Uneasy Peace, Uncertain Security  A Weak League of Nations  Without US membership, member nations wanted little to do with using force against aggressors.  French Demands  French wanted strict enforcement of Treaty of Versailles  Germany paid 2.5 billion marks in reparations in 1921, then ran out of $ France occupied German Ruhr Valley and collected $ by controlling German mines.  Inflation in Germany  Germans printed more paper $ when they ran out German $ became worthless.

 America tried to help Germany out by passing the Dawes Plan.  Dawes Plan gave Germany a loan of $200 million in 1924 to stabilize the German economy  Treaty of Locarno – guaranteed Germany’s boundaries with France and Belgium. Seen as a new era of peace.  Kellogg-Briand Pact – 63 nations signed a document renouncing war as a form of national policy.

 The Great Depression When the US stock market crashed, the loan to Germany stopped and the German economy fell apart. Depression = low economic activity and rising unemployment. Why did the market crash? 1. Uneven distribution of wealth – most of the $ in the US was going to a small # of people 2. Worldwide overproduction of agriculture created a surplus and drove prices down 3. People started to default on their bank loans…

Once the Great Dep- ression hit the US, many families were forced to migrate out west looking for employment Dorthea Lange’s Migrant Mother

People bought stock that they could not afford (“on margin” – like a credit card) People couldn’t pay back the stock $, so the stock prices fell and investors lost $. Everyone freaked out and tried to sell their stock ASAP and the stock market crashed. US responds by raising tariffs (tax on stuff coming into the US) and the rest of the world is affected too.

Wall Street right after the stock market collapsed

While the US economy slowly recovered w/ the help of Franklin D. Roosevelt’s New Deal, many countries in Europe looked to strong leaders for help…

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