1. A global depression

2. Objective:
Students will discover the functions of our world economy and be able to summarize how it operates through their Cornell notes.

3. Setting the Stage Late 1920s Almost every European nation was bankrupt
European nations were rebuilding war-torn economies
Aided by loans from the U.S.
Only Japan and U.S. came out of WW1 in better financial shape than before

4. Germany Faced enormous economic problems
Had to pay heavy reparations to the Allies – the mark was worth very little
U.S. steps in and loans Germany 200 million to help them recover

5. The Great Depression Late 1920s
If the U.S. economy weakened, the whole world’s economic system might collapse
In 1929, it did…

6. A flawed U.S. economy
Despite U.S. prosperity, there was 3 weaknesses in the U.S. economy
Uneven distribution of wealth
Overproduction by business and agriculture
Lessening demand for consumer goods

7. Uneven Distribution of Wealth
Nearly half of the world’s industrial goods came from the U.S.
Led to enormous profits
Richest 5% received the majority of the profits
60% (mostly factory workers) earned less than $2000 a year
Unable to afford goods being produced = stores unable to sell goods = factories had to laid off workers
Downward spiral has begun

8. Overproduction
New farming methods + new machinery helped with agriculture + industry
Competition all over the world = drove prices and profits down
Farmers and factory owners could not sell their goods for a profit
Forced many farms and factories to close down

9. No demand for consumer goods
Many citizens either
Made very little money
Had no job or laid off
Could not afford to buy any goods

10. JTPS
What were the 3 weaknesses within the U.S. economy? Explain each weakness and elaborate on why it was a problem and how they are each connected.

11. U.S. fails = World fails
Collapse of American economy sent shock waves around the world
World trade dropped 65%
Europe gets hit hard – many relied on loans and investments from the U.S.

12. A New Deal Franklin D. Roosevelt Began a program called the New Deal
Program created projects to help provide for more jobs
Government agencies gave financial help to businesses and farms
Government spending helped to create new jobs and start a recovery

13. QW #8 – Our Economy
Objective: Students will review the functions of our world economy and demonstrate their understanding as measured by their QW writing prompt.

14. QW #8 – Our Economy
Explain how our economy works . What helps our economy to function? What detracts from our economy and causes it to collapse? Elaborate in detail.
1 paragraph
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