1. The Great Depression

2. Tuesday May 5th, 2015 Happy Revenge of the Fifth ! 
HW: Stalin DBQ & 15.2 notes due
Tuesday May 12th
Happy Revenge of the Fifth ! 
Get out a piece of binder paper & title it The Great Depression & Fascism Notes

3. The Causes of The Great Depression
There are a great number of causes, but which one do we focus on?
The stock market but it is only one of many!
We will be looking at an overview of the causes, you will read more about the GD in your 15.2 notes which you will have time for later 
One major cause is the instability of new gov’ts in Europe after WWI
Many are willing to trade freedoms and democracy for strong leadership
Like….?

4. The most drastic example
Germany & the Weimar Republic
What part of the Treaty of Versailles would affect their economy? Tell your partner.
The war reparations clause. It bankrupts Germany. Their solution is to print more money. What does that lead to?
The US tries to stabilize their economy with the Dawes Act which gave loans to Germany. Nice idea in theory…

5. Increased reliance on technology
This leads to fewer people being employed
Machines replacing people in all kinds of jobs
This will lead to less purchasing power which leads to even more layoffs
Technology also leads to surplus crops..that no one can buy!
60% of the population is at or below the poverty line (making less than $2,000/year)

6. Stock Market Crash How stocks work Buying on margin
Collateral: something of value that can be repossessed if you don’t pay up
We depended far too much on the promise of getting rich quick with stocks & the stocks were completely inflated! Sometimes intentionally.
Investment pools lead to a frenzy

7. Black Tuesday : October 29, 1929. Millions were instantly impoverished
Black Tuesday : October 29, Millions were instantly impoverished. Lost $16 BILLION in 1 day
Even people that hadn’t made risky investments were impacted because of the bank runs. Banking industry was not well regulated.
Total losses for the four days: $30 billion, 10 times federal budget and more than the U.S. had spent in World War I ($32B estimated).
Thousands of people were left holding worthless stocks and millions in loans to banks.

8. Collapse So why does America’s economic collapse affect the world?
We weren’t as affected by WWI so we were investing heavily in Europe but after the crash we pull out our $$.
We also start calling in our loans to Germany & the Allies but they can’t pay.
Tariffs killed world trade; especially for Germany

9. How does the world react?
Britain raises taxes & lowers interest rates
France formed a coalition gov’t
Scandinavian countries sponsored public works projects and welfare
1932 – US elected Franklin D. Roosevelt
New Deal – public works, relief programs, reform (stock market, banks)
Now you will have time to work on your 15.2 Cornell notes! These are due next Tuesday.