1. Ch 31 Post WWI

7. Bills Cause Problems $33 billion dollar bill (1921)
Next year Germany cannot pay
France occupies industrial region called the Ruhr
Germany prints money … INFLATION!

13. Some Hope …. 1924 new plan introduced Dawes Plan Product of US
Designed to help stabilize economic situation
Accepted by all and brought a shaky but somewhat stable result

14. Depression Hits 1929 US stock market crashes
Buying on margin
1920’s credit growth
US financial market collapses
US economy affected world
Loans from American bankers
European panic
Cuts in production

15. “Cycle of Disaster” – many businesses went bankrupt
Businesses cut
production
Workers suffered
from wage cuts
and lay offs.
Demand for
goods fell.
People had
little or no
money to spend.

16. Immediate Effects … UNEMPLOYMENT Britain Germany US
Unemployment to social problems
No job
Birth rates decline
Marriages reduced
Divorce increase
Suicides increase
Mental illness increase
Crime increases
UNEMPLOYMENT
People have no jobs!
Britain
12% to 20%
Germany
33% US
5% to over 25%

22. Effects of the Depression
Increased activity by government in economy
Renewed interest in Marxist governments
People look to dictator leaders for answers (Italy, Germany, etc)