1. A Worldwide Depression
After World War I, an economic depression in the United States spreads throughout the world and lasts for a decade.
1920s & 1930s

2. Postwar Europe Unstable New Democracies
After WWI, empires create new democracies in Europe
People have little experience with representative government
Some form coalition governments—temporary, multi-party alliances
Frequent changes in government create instability
People more willing to accept strong, authoritarian leadership.

3. The Weimar Republic Democracy in Germany
Weimar (VY mar) Republic—Germany’s democratic government formed in 1919
Government has serious weaknesses
Lacked strong democratic traditions
Blamed the gov’t for the country’s defeat and humiliation caused by the ToV (1918).
Inflation Causes Crisis in Germany
Value of German currency falls dramatically
Rather than tax individuals they printed more money; losing its value which led to inflation
Attempts at Economic Stability
American bank loans help to revive German economy
Charles Dawes – Dawes Plan - $200 million loan from American banks to stabilize German currency.
Efforts at a Lasting Peace
Germany and France sign treaty pledging no more war. They would respect the existing borders of France and Belgium
It was then admitted to the LoN.
Many nations sign a similar agreement, the Kellogg-Briand pact (Treaty) - No way to enforce!!! The LoN had NO armed forces and the U.S. refused to join the League.

4. Financial Collapse A Flawed U.S. Economy Economy boomed in the 1920s
But….
Wealth is distributed unevenly
Richest 5% received 33% of all personal income. While 60% of all American families earned less than $2k.
Most people are too poor to buy goods produced - start buying on credit, but can’t buy anymore.
Store owners cut back their orders since people aren’t buying. So factory owners cut back on production, lay off workers
Farmers produce more food than people can eat
Competition abroad led to the inability to profit
Many farmers cannot repay loans and lose their land
Unpaid debts weakened banks and forced some to close.

5. Financial Collapse The Stock Market Crashes Stock prices soar
Many people buy stocks on credit
Investors begin selling stocks, which lowers prices
On October 29, 1929, stock market collapses as prices fall very low
Many people started sold their stocks and no one wanted to buy.
Start at 1:00 Buying on Margin
Economic Downturn
Great Depression—long business & economic slump of 1930s
Marked by bank failures, loss of savings, unemployment
A Global Depression
American economic problems create problems in other countries
World trade falls sharply
Nations raise tariffs wanted sales by local businesses
Effects Throughout the World
Germany and Austria suffer greatly, as do Asia and Latin America

6. U.S. recovers from the Great Depression
Recovery in the United States
Franklin D. Roosevelt—American president during Depression
New Deal—Roosevelt’s program of government reform to improve economy
Govn’t created jobs by:
new projects (roads, dams, bridges & buildings
Business and farmers got help, too
For Professional (artists, photographers, historians, teachers, etc.)
The economy got better, but recovery was slow (took all of the 1930s until WWII)

7. Fun fact
In 1995, following reunification of Germany (Berlin wall falls in 1989), Germany made a final installment of $94 million to the U.S. on Oct 30, 2010 to settle German loan debts in regards to war reparations from both World wars.