1. The Great Depression
Many economies increased agricultural and industrial production during WWI
Western Hemisphere States adopted economic policies on the principle that this would continue indefinitely
Post-War farms and factories production outpaced demand causing price drops and lower profits
Most important Japan, U.S., and W. Europe
Unequal income distribution in Industrialized world meant many workers did not have enough money to buy products

3. The Great Depression
Export economy countries and colonies also overproduced=unable to buy industrial goods
Further lowering demand/profit for industrialized economic goods
These areas were hit especially hard by the Great Depression
Example: Chile = dependent on copper exports  value of its copper cut by 80%
Cocoa farmers in Ghana = badly hurt as prices of “luxury” and “commodity” goods dropped

4. The Great Depression
Many states were either in debt to or dependent on U.S. bank loans in some capacity
EXAMPLES:
Germany and Austria=US loans to pay reparations to France and Britain
Britain and France=Wartime debts to US
Paid with reparations….
Latin American Economies=STILL dependent US investment in economies

6. Problems in Germany
The punishment of Germany goes too far and cripples their post-war economy in 1923
Hyperinflation occurs
German money is worthless (when the general price level rises, each unit of currency buys fewer goods and services)

7. The Great Depression
Economic Global connectivity causes depression to grow quickly
EXAMPLE:
U.S. Stock Market Crashed in 1929=Weakened US. Banking and industrial production
Lead to a major economic downturn in U.S. and thus W. Europe and Japan and thus Latin American and colonial holdings

8. The New York Stock Exchange in October, 1929

9. Why was the stock market crash such a big deal?

10. The Great Depression Depression lead to: MASSIVE unemployment
Decreased global trade
Inflation
Rise of political extremism
Governments began to take a more active role in economic life

14. The Great Depression Emergence of: Vacant factories Soup kitchens
Bread lines
Shantytowns
Homeless people and beggars

15. The Great Depression Worldwide phenomenon
Spread from America to Europe and beyond
Lasted about 10 years
A Run on a Bank in Berlin

16. Responses to the Great Depression
Governments turned to a variety of responses to attempt to address the crisis of the Great Depression
In general governments took MORE of a role in the economies and the economic lives of its citizens
How successful or popular these actions were depended greatly on the State

17. Populism
Populism=gov support struggle of people against a privileged elite
Populism Examples:
Mexico and Brazil in mid 20th Cent
Redistributed land to peasants
Nationalized foreign controlled industries
Oil, Mining, and farming, ect
Used money to support social programs
Education, healthcare, pensions, ect

18. Welfare Sates
Welfare state policies developed in more democratic/parliamentary government states
Sought to protect and enhance the well-being of their citizens
Influence by Socialism & Socialist principals
Discarding the traditional laissez-faire policies of Capitalism and Economic Liberalism

19. Welfare Sates
Various relief and welfare programs to aid the poor, unemployed, and elderly
Support for workers and labor unions
Government subsidies for farmers and industries to encourage more production
Creation of new government agencies to help supervise the economy

20. Welfare Sates EXAMPLE:
Franklin D. Roosevelt’s New Deal Program ( )
There was heavy government invested in infrastructure/public works projects=jobs
Dams, highways, bridges, parks, etc
Welfare programs created
Unemployment assistance, social security, minimum wage, ectW

21. Fascism
Belief that the state is more important than induvial and all aspects of life should serve state
Based on EXTREME Nationalism and often racial superiority
Individual liberties or democratic freedoms are unneeded, even a threat to the state
Practiced in Japan, Italy, and Germany

22. Fascism Fascism supported: Strong Militarism and expansion
Leaders often wear military uniforms
ONE ruling party with no political opposition
Use of violence to accomplish desired action
Racism to justify action
Often used ethnic minorities as scapegoats for problems

25. Fascism Economic policy=fascist corporatism
Economic organized into state run corporations
Made up of workers, unions, and business leaders
Ideally would work for the good of all members, but in reality only state interests supported

26. Totalitarianism
System of government that attempts to control all aspects of its society
Similar to or often built on fascist ideas
Used Great Depression and global tension to justify rise
Practiced in some capacity in Germany, Japan, and the Soviet Union

27. Totalitarianism Totalitarian states attempt to:
Control political structure
Define the values and beliefs of its population
Control economy for state needs
Direct individual's existence toward the state's goals
Expand and conquer territory for economic and political means
Used variety of methods to accomplish goals:
Nationalism
Attacks of ethnic and religious minority populations
Secret Police/Military force
Mass media and propaganda