1. The Great Depression The 1920s were a period of economic prosperity
Europe and the United States
Role of US- isolated
However, the prosperity was fragile

2. Emerging Problems
At the end of World War I, European nations owed over $10 billion to their former ally, the U.S..
Their economies had been devastated by war and they had no way of paying the money back.
This forced the allies to demand Germany pay the reparations imposed from the Treaty of Versailles.
All of this later led to a financial crisis when Europe could not purchase goods from the U.

3. Emerging Problems uneven distribution of wealth
Workers produced TONS of goods, making business owners VERY rich
Workers wages only rose a little bit though

4. American Economic Expansion during the 1920s

5. Consumer Debt in the 1920s

6. The Crash of 1929 Major selling of stocks in Wall Street
Stock Market crash in Wall Street October 29, 1929 “Black Tuesday”

7. The Great Depression Massive shutdown of businesses
Massive global unemployment in US, Europe
Economic collapse threatened payments of reparations

8. The Great Depression Britain
Coalition government formed- preserves democracy by avoiding political extremes
2.5 million unemployed by 1931
Raises tariffs
Government brings about slow, steady economic recovery

9. The Great Depression France Social and Political Paralysis
Moderates and Socialists combined to form governments
Preserves democracy in spite of economic troubles

10. The Great Depression The United States
Expanded role of federal government
The New Deal under Franklin Roosevelt gives U.S. a temporary spark but Depression lingers

11. The Great Depression in the US and Europe