1. The Great Depression

2. Unit Objectives
Understand the causes and impacts of the Great Depression
Analyze individual programs of the Great Depression and their effectiveness
Analyze how the Great Depression helped lead to the rise of the dictators of WWII

3. Post-WWI
Only two nations were in better financial shape after the war than before: Japan and America
European nations spent years rebuilding with the help of loans from the U.S.; Many European nations were bankrupt
America entered the “Roaring Twenties”—the most prosperous economic decade in American history

5. New Democracies
New democracies took the place of absolute rulers all over Europe but in places that had no history or experience with democracy—that made them ineffective and weak during hard times making people willing to accept authoritarian governments that made grand promises
Weimar Republic:
DEMOCRATIC GOVERNMENT ESTABLISHED IN
GERMANY AFTER WWI; WEAK, DIVIDED, BLAMED BY
MANY GERMANS FOR WWI DEFEAT AND TERMS OF
TREATY OF VERSAILLES

6. Problems in Germany
Weak government, inability to pay WWI war reparations, went off gold standard to print money that became worthless, inflation
Many Germans questioned
value of their democratic
government

7. Late 1920s Germany tried to make peace with France, joined League of Nations, and signed the Kellogg-Briand Pact:
INTERNATIONAL AGREEMENT TO NOT GO TO
WAR; ALMOST EVERYONE SIGNED BUT THERE
WAS NO WAY TO ENFORCE IT

8. Stock Market crashed in Oct. 1929
TOO MANY INEXPERIENCED PEOPLE BOUGHT STOCKS AND TOOK OUT LOANS TO COVER THE COSTS
WHEN MARKET STARTED TO FALTER, EVERYONE PANICKED—EVERYONE TRIED TO SELL STOCKS, NO ONE WANTED TO BUY

9. Stock Market Crash of 1929
The world’s economy was dependent on America’s in the 1920s—when America’s economy struggled so did Europe’s
Problems in America’s economy that no one recognized:
UNEVEN DISTRIBUTION OF WEALTH
OVERPRODUCTION BY FARMS AND INDUSTRY
AMERICANS WERE BUYING LESS

10. Stock Market Crash of 1929
Stock Market Crash did not cause Great Depression all on its own but it was one of the main causes and it did make an already bad situation worse
Impact of the Depression in America:
FACTORY PRODUCTION CUT IN HALF
UNEMPLOYMENT WAY UP
PRICES AND WAGES FELL
BUSINESSES FAILED
BANKS CLOSED

12. Impact on the World
U.S. banks demanded repayment of loans to European nations that could not be paid back
U.S. investors withdrew money from Europe
The U.S. raised tariffs to keep American money in the U.S. which caused the Europeans to stop buying American products and raise their own tariffs
World trade went down
Unemployment went up
Germany and Austria were hit the hardest due to restrictions of the Treaty of Versailles and they were more dependent on U.S. loans and investment than anyone else
The Depression was felt in Latin America and Asia as well

13. What did America try to do?
Franklin Roosevelt was elected in 1932 promising a “New Deal” to get America out of the Depression
The New Deal relied on the belief that increasing government spending would stimulate the economy, so public works programs were created to create jobs and welfare was created to provide help to individuals
New government regulations of the stock market and banks to help ensure another Depression would never happen

14. What did other nations try?
RAISED TARIFFS AND TAXES, LOWERED INTEREST RATES TO ENCOURAGE BUSINESS, MORE GOVERNMENT REGULATIONS

15. Overall impact of the Depression?
Led to political instability in nations that were suffering
Some nations believed capitalism was failing and turned to socialism
Many individuals became desperate and found the promises of people like Mussolini and Hitler appealing