1. The Great Depression
Warm Up: Review Treaty of Versailles

2. Objective Students will: Standards
Evaluate the causes of the Great Depression
Analyze and describe the global effects of the Great Depression and a cause to WWII, including unemployment, inflation, and the downturn in trade
Standards
W.37 Describe the collapse of international economies in 1929 that led to the Great Depression, including the relationships that had been forged between the United States and European economies after World War I. (E, H)
W.38 Gather information from multiple sources describing issues of overproduction, unemployment, and inflation. (E, P)

3. A Worldwide Depression
Unstable New Democracies
Fall of kingdoms, empires creates new democracies in Europe
People have little experience with representative government
Coalition governments—temporary, multi-party alliances
Frequent changes in government create instability

4. The Weimar Republic Democracy in Germany
Weimar Republic—Germany’s democratic government formed in 1919
Government has serious weaknesses
Inflation Causes Crisis in Germany
Value of German currency falls dramatically (hyperinflation)
Attempts at Economic Stability
American loans help revive German economy
Efforts at a Lasting Peace
Germany and France sign treaty pledging no more war
Many nations sign a similar agreement, the Kellogg-Briand pact
Germans kept printing money to pay for war--- inflation

5. US Economy in the 20s

6. Roaring 20s Run Out of Steam
Coal, RR, & Housing on the decline
Farms struggled w/o gov’t price supports
Credit bubble burst
Consumer debt, stock mkt, no savings

7. Financial Collapse A Flawed U.S. Economy
Weaknesses in American economy cause serious problems
Wealth is distributed unevenly
Most people are too poor to buy goods produced
Factory owners cut back on production, lay off workers

8. Stock Market Crash Stock prices soar; many people buy stocks on credit
Investors begin selling stocks, which lowers prices
Black Tuesday (Oct. 29, 1929)
NYSE $30 million disappeared in one day
Savings lost; Debt
Sept-Dec.: $40 billion lost

9. The Great Depression Economic Downturn
Great Depression—long business slump of 1930s
Marked by bank failures, loss of savings, unemployment
By 1933, over 25% of Americans were unemployed (50% of African Americans were unemployed)
A Global Depression
American economic problems create problems in other countries
World trade falls sharply
Effects Throughout the World
Germany and Austria suffer greatly, as do Asia and Latin America

10. Slowdown in trade
1930, President Hoover signed the Smoot-Hawley Tariff Act – out heavy taxes on imported goods
Attempt to encourage Americans to buy goods/products made in the U.S.

12. Many waited in unemployment lines hoping for a job.

13. People in cities would wait in line for bread to bring to their family.

14. Some families were forced to relocate because they had no money.

15. Photo Analysis

16. The World Confronts the Crisis
France Responds to Economic Crisis
France has more self-sufficient economy
Preserves democracy in spite of economic troubles
Socialist Governments Find Solutions
Public works programs help Scandinavian countries recover
Recovery in the United States
Franklin D. Roosevelt—American president during Depression
New Deal—Roosevelt’s program of government reform to improve economy

17. Circumstances That Produce Dictators
Poverty +
Instability (pol/econ)
Unemployment ______________________
Dictator

18. Prediction
Write FIVE sentences explaining you prediction as to whether or not the Great Depression was a cause for WWII.