1. The great depression

2. What was the Great Depression?
A time from when the global economy was ruined.

3. Who was impacted by the Great Depression?
Primarily, Europe and the U.S. But it really impacted the whole world

4. Generally, what major events caused the Great Depression?
In Europe
Expensive rebuilding after WWI
The severe punishment of the Central Powers at the Treaty of Versailles.
In America
People bought stocks with credit that they couldn’t pay back
Stock market crashed
Banks ran out of money
Businesses had to lay off most of their workers

5. Great Depression in Europe

6. What factors impacted Europe?
Most of Europe had to rebuild from WWI
The Allied nations were rebuilding using their own money & Germany’s money
It wasn’t enough.
Unemployment rose in Europe
Soldiers returning from the war needed work
Workers who did soldier’s jobs during the war lost their jobs.

7. What European nation was most impacted by the Great Depression?
Germany (B/c of the Treaty of Versailles of course!)
They had to pay for war damages
They lost prime industrial land to France (the Rhineland)
Heavy military losses/casualties

8. How did Germany respond to all of their economic issues?
Germany started printing money without an economy to make it worth anything.
Printing to much money causes hyperinflation
Hyperinflation – Prices for goods increase out of control because there is too much money in circulation.
Germany’s financial issues damaged all of Europe’s economy.
Because of Europe’s financial issues, they couldn’t buy goods from the U.S.

9. Great Depression in America

10. How was America after WWI?
Europe stunk but America seemed great!
The 1920’s appeared to be a time of economic boom in the U.S. after WWI.
The war caused industry & agriculture to boom
Stocks were high
Anyone could get loans or use credit to buy stocks and “get rich” quickly
Items that were once luxury goods became necessity and were bought with borrowed money.
cars, vacuums, radios, telephones, ovens, fashion, entertainment etc.
Soldiers had money in their pocket and were ready to get back to work.

11. Sounds good! What was wrong?
The war was over but American companies & farmers continued producing goods at a high, wartime, rate
Even though Europe was in trouble and could no longer afford American goods.
Industrial worker’s wages remained low
American consumers were running out of money.

12. What about the stock market?
The 1920s only seemed like a boom b/c of the growing stock market.
Many Americans kept buying stock hoping/thinking the good times would continue.
These stocks were often bought on credit or with loaned money
This made it look like companies were doing really well when actually they were struggling to sell their goods.
European’s had no money and American consumers stopped buying as much
Companies were producing more goods than they could sell.
This is known as a surplus.
Surplus = more supply than demand

13. What is Black Tuesday?
All of these activities culminated in a devastating Stock Market Crash. On October 29, 1928, known as Black Tuesday, the US experienced the biggest loss in financial worth in the stock market.

14. It only gets worse
Companies had to lay off their workers because of the stock market crash and declining consumer demand.
Leading to increased unemployment
If no one has a job, no one makes money. If no one makes money, no one can buy goods. If no one can buy goods, the companies can’t make money. If the companies can’t make money, they can’t hire workers. If they cant hire workers, then no one has a job. If no one has a job no one makes money. If no one makes money no one can buy goods. If no one can buy goods the companies can’t make money. If the companies can’t make money they can hire workers. If they cant hire workers then no one has a job. If no one has a job no one makes money. If no one makes money no one can buy goods. If no one can buy goods the companies can’t make money. If the companies can’t make money they can hire workers. If they cant hire workers then no one has a job. If no one has a job no one makes money. If no one makes money no one can buy goods. If no one can buy goods the companies can’t make money. If the companies can’t make money they can hire workers. If they cant hire workers then no one has a job.
On top of it all, the central U.S. was experiencing one of the worst droughts of all time and no food could grow. (the Dust Bowl).

15. What happened to the banks?
People went to the banks to withdraw all of their money.
The banks didn’t have enough.
To get more money to give to the people and to prevent closure the banks demanded full payment of their loans.
No one could do that
Government bank regulations were nonexistent and people lost everything.
Even those who were smart with their money
Banks and businesses closed
Unemployment and homelessness increased further

16. Worldwide Reactions

17. During difficult times, nations choose strong leaders
The worldwide depression is going to give rise to countries choosing new, strong leaders with new bold ideas to try to fix their countries. Hitler - Germany Mussolini - Italy Tojo - Japan Stalin – Soviet Union (Russia) Roosevelt – America

18. What is America’s reaction to the Great Depression?
Electing Franklin D. Roosevelt (FDR) in 1932
FDR created the New Deal.
The New Deal - Programs and policies in the form of public works to increase employment as well as regulations on the stock market, banks, and business and agricultural production.
Building bridges, buildings, roads, dams, schools and other infrastructure, planting trees, creating national parks, Social Security

19. How did Germany Respond?
Severe unrest in Germany caused extreme groups to participate in German politics.
Nazis
Hitler took advantage of the people’s economic and political fear & became the German Chancellor in 1933.
Hitler became very popular as he criticized and denounced the T.o.V.
He got rid of political opponents, gave the Nazi Party complete power, and took total control of the government.

20. How about Italy and Japan?
The political and social unrest caused by the economic depression allowed Benito Mussolini to gain support in Italy and allowed for a military takeover of the government in Japan. The totalitarian governments of Germany, Italy, and Japan would use the economic depression to justify the takeover of other nations in order to help improve their own economies