1. Global Depression
15-2

2. Effects of WWI Great War leaves Europe bankrupt
U.S. and Japan came out in better shape

3. New Democracies
European nations - little experience with democratic government
Germany – Weimar Republic

4. Coalition Government
Temporary alliance of several political parties to form a parliamentary majority

5. Weimar Republic Blamed for WWI losses
War and reparations bankrupt Weimar Republic – answer = print more money = inflation
Bread: less than 1 mark
marks
billion marks

6. Dawes Plan
$200 million loan from American banks to stabilize the economy of Germany

7. Kellogg-Briand peace pact
Most of world signs peace pact
No way to enforce – League of Nations weak (no U.S.)

8. U.S. Economy 1929 – 3 flaws uneven distribution of wealth
overproduction by business and agriculture
demand for consumer goods down.

9. Great Depression
People can’t afford goods = stores cut back on orders = factories cut back on production = layoffs = cycle

10. Oct 29th 1929 Wall Street – Financial capital of World (NYC)
Buy stocks on margin.
Downward slide –everyone selling nobody buying

11. Great Depression
Businesses fail = people can’t pay bank loans = banks close (no $) = people lose all $ in banks
Farmers lost lands
1933 ¼ of all American workers had no jobs

12. Global Depression American bankers demanded payments of overseas loans
High tariffs (taxes)
World trade down 65%

13. Global Depression U.S. can’t invest and loan to world
Germany & Austria hurt

14. World Responds
Britain, France, Denmark, Sweden and Norway restructure and eventually come out ok = preserve democracies

15. Recovery!!!!
DOES NOT
believe in
Laissez Faire
1932

16. The New Deal Government helps the people Welfare
Jobs- garbage, bridges, street cleanup
Confidence and $
Shows great democracy

17. Franklin D Roosevelt

18. Black Tuesday- Stock Market

19. Unemployment Lines