1. Interwar Period
The Great Depression

2. Black Tuesday NY—October 29, 1929 Stock Market Crash
Marks beginning of Great Depression

3. Causes Excessive credit Overproduction on farms and in factories
U.S. dominance in
economy
High protective tariffs
European economies never fully recovered from World War I
Reparations led to inflation in Germany

4. Results High Unemployment Bank Failures Collapse of Prices
Weakened democracies in Europe
Rise of fascism, including Nazi Party in Germany
Great Depression was worldwide

5. Government Response President Hoover did little to help
Dust bowl made situation even worse

6. So then what?
By 1932 more than 30 million workers in industrialized countries were jobless
France: Less industrialized which helped, but depression eventually hit and it caused political instability
Great Britain: created jobs, raised tariffs, and formed a system of economic cooperation within its empire

7. FDR’s New Deal NEW DEAL Program of Relief, Recovery, and Reform
Federal gov’t provided states
with $$ for needy
Public works programs provided jobs
(ex., building Blue Ridge Parkway or WHS)
Banks and stocks were regulated by gov’t
Social Security Act provided benefits for unemployed and senior citizens

8. More Gov’t Response
Labor Reforms
40-hour work-week
Minimum wage
Right to form unions
These responses did not solve all the problems of the Great Depression.

9. Worldwide Impact High unemployment
Bank failures and collapse of credit
Collapse of prices in world trade
Weakened democracies
Provided opportunities for the rise of dictators (Soviet Union, Germany, Italy, and Japan)