1. The Great Depression Main Idea
In the late 1920s, an economic depression started in the United States and quickly spread around the globe, causing great hardship and creating ideal conditions for political unrest.

2. The U.S. Economy in the 1920s At War’s End Economic Growth
U.S. world’s leading economic power at end of World War I
Position stronger during 1920s
End of decade, economy crashed
Economic Growth
American farms, factories supplied world with food, supplies to fight World War I
Economy slowed briefly at war’s end
Steady Growth
Economy booming by 1921
Most growth in industry
Auto manufacturing, consumer goods, radios, vacuum cleaners, washing machines
1920s Stock Market
Overall value rose 400 percent
Americans did not want to miss out on prosperity
Increased investment drove stock prices higher

3. Hidden Problems Credit
Stock market booming, but hidden problems affected economy
New wealth not distributed evenly
Richest 1 percent of population earned 19 percent of nation’s income
Easy credit allowed increase in consumer goods spending
Credit
Credit, arrangement where purchaser borrows money from lender and agrees to pay it back over time
At decade’s end many consumers reached limit of credit
Could no longer afford to buy products that had kept U.S. economy expanding

4. The Stock Market Crash Fall of 1929 October 29 Market Crash
Consumer spending slowed, sales suffered
Many feared drop in stock prices
Nervous investors began to sell off stocks
October 29
Black Tuesday, 16 million shares of stock sold in one single day
Few people wanted to buy stock, stock prices collapsed
Investors who had borrowed to buy stocks forced to sell at loss
Market Crash
Stock market crash ruined many investors
Banks that had lent money to investors were also in deep financial trouble
Devastating blow dealt to American industry

6. The Depression Spreads
American economy took severe downward dive after stock market crash
Economic downturn became known as Great Depression
Depression result of complex factors
One factor, slowdown in industry; began before crash, worsened quickly after
Great Depression
As industry slowed, workers lost jobs
One out of four unemployed by 1933
Joblessness, poverty reduced ability to buy food, goods, hurt industry even further
Banks suffered when businesses, investors failed to pay off loans; many failed
Industry Slows

7. The Depression Spreads
Government Response
President Herbert Hoover favored minimal government response to crisis
Some thought depression was normal adjustment to overheated economy
Hoover eventually took some actions, many felt too little too late
Roosevelt Elected
Franklin Delano Roosevelt elected president, 1932
Increased federal government’s role in lives of Americans
Pushed forward New Deal, program to fight Great Depression
New Deal
Provided government spending to help start economic recovery
Public works programs to provide jobs, government money for welfare, relief
New regulations to reform, protect stock market, banking system

8. New Economic Theories
Increased government spending supported by theories of British economist John Maynard Keynes
Believed governments could limit, prevent economic downturns
Governments should spend money
Spending would help increase economic output
Factories would hire workers to meet new demand
Eventually workers would begin spending, depression would end
Government spending did help U.S. economy, but depression lingered through 1930s

9. The Worldwide Depression
In 1929 America was one of the world’s leading importers and lenders of money, and created much of the world’s industrial output. Events affecting America’s economy would soon impact other countries.
Some countries having difficulties before stock market crash
European countries recovering from World War I
Allied Powers in debt to U.S.
Before the Crash
High interest rates in Great Britain
Decreased spending, high unemployment
Germany’s reparations led to inflation, crippled economy
World Woes
Japan’s economic depression forced banks to close
U.S. Great Depression latest in long series of economic crises
Effects far worse
Series of Crises

10. The Worldwide Depression
A Slowdown in Trade
President Hoover signed Smoot-Hawley Tariff Act, 1930
Act placed heavy taxes on imported goods
Attempt to encourage Americans to buy U.S. made goods, products
American goods would be cheaper than taxed imported goods
New tariff led other countries to increase their tariffs on American goods
World trade slowed to a standstill
Loss of foreign trade crippled many nations’ economies
Act Backfired
Trade slowed, prices collapsed
Price of Japanese silk dropped
Silk major Japanese export, nearly 20 percent of farm income
Decline of silk industry one example of collapsing markets worldwide
Results

11. The Worldwide Depression
The postwar era left many countries politically unstable. As the Depression continued, unrest grew worse.
Instability in Great Britain and France led to formation of several new governments
Extremist political groups gained strength
Germany’s Nazi Party blamed Jews
Italian dictator Benito Mussolini tightened his control of the nation
Political Impact
Widespread misery, hopelessness worldwide
Ideal conditions for rise of leaders who promised to restore their nations to glory
World in midst of troubled times
Worse crisis lay ahead
Economies Worsen,
New Leaders Emerge

12. Dictatorships rise in europe
Fascism - a political system headed by a dictator in which the government controls business and labor and opposition is not permitted.
Needs and brings about a highly aggressive form of nationalism
Individualism is not tolerated. It is seen as making the country weak.
Anti-communism – belief that labor unions and individuals identifying as communist are trying to undermine the government.
Communism - a political and economic system in which the major productive resources in a society—such as mines, factories, and farms—are owned by the state, and wealth is divided among citizens equally or according to individual need.
Complete control of economic planning by the State Party

14. Totalitarian leaders are dictators who control all aspects of the government & the lives of the citizens
Totalitarian leaders gained support by promising jobs, promoting nationalism, & using propaganda
Dictators held on to their power by using censorship, secret police, denying liberties, & eliminating opposing rivals or political parties

15. Mussolini’s Rise Dictator Appoints him as Prime Minister
Original Fascism 1919
Black Shirts
March on Rome
King Victor Emmanuel III
Appoints him as Prime Minister
Dictator

16. Il Duce Abolished Democracy Outlawed political parties
Jailed opponents
Censored journalism
Outlawed strikes
Controlled the economy

17. Hitler’s Biography Early Life
Born in Austria 1889
Dropped out of high school
Failed as an artist
Volunteered for WWI
Twice awarded the Iron Cross
Medal for bravery 17

18. Hitler Rise of the Nazis
Joined the Nazi Party 1919
National Socialist German Workers’ Party
Swastika
Brown Shirts
Gained control 1921
Marched on Munich 1923
Revived the Nazi Party 1924 18

19. Nazism 1923 Mein Kampf 1924 – 1932 Nationalism Anti - Semitism
Failed attempt to seize power in Munich (Beer Hall Putsch)
A putsch is the same as coup d’etat (remember Napoleon)
Mein Kampf
Aryan superiority
Treaty of Versailles outrage
Lebensraum
1924 – 1932
Gained power as economy weakened
Nationalism
Anti - Semitism
Anti - Communism
Social - Darwinism

20. Hitler’s Rise to Power
1932
Largest political party – Nazi Party voted in as majority in the Reichstag (German Parliament)
1933
Gained control of the German Weimer Republic (the government)
President Paul von Hindenburg names him Chancellor
Despite General Erich Ludendorff’s warning
Reichstag Fire Decree
Decree of the Reich President for the Protection of People and State
Enabling Act
Law to Remedy the Distress of People and Reich 20

21. Erich Ludendorff Letter to President Hindenburg, February 1, 1933
“By appointing Hitler Chancellor of the Reich, you have handed over our sacred German Fatherland to one of the greatest demagogues of all time. I prophesy to you this evil man will plunge our Reich into the abyss and will inflict immeasurable woe on our nation. Future generations will curse you in your grave for this action.” 21

22. der Fuhrer The Leader Called for new elections
Blamed Communists for Reichstag fire
Stirred up fear
Turned Germany into a totalitarian state
Banned political parties
Arrested opponents
SS (Schutzstaffel)
Gestapo 22

23. Hitler Maintains Power Economy
Banned strikes
Dissolved labor unions
Controlled business and labor
Lowered unemployment
Highways
Weapons
Military 23

24. Stalin’s Soviet Union Stalin’s Agenda Creation of a police state
Create a model Communist state
Industrial restructuring
Surpassed only by the US and Germany
Creation of a police state
Arrested Critics
Jailed prisoners in Siberian labor camps
Great Purge of the 1930’s
Millions Died

25. The Faces of Totalitarianism
How does totalitarianism differ between them?