1. Learning Objective:
Today I will be able to identify the problems in the world depression after WWI by filling out a bonefish sheet.
Agenda
Learning Objective
Lecture Notes: Ch World Depression
Bonefish
Exit Slip

2. Title Notes: Ch. 15.2 World Depression
Unstable economy in Europe after WWI
But, U.S. is prospering, 1920s.

3. VS Unstable New Democracies in Europe
Last rulers/kings in Europe overthrown,
For generations kings & emperors have always Ruled, Germany & countries created from Austria-Hungary.
Even Italy, France, & Great Britain were monarch.
Little experience with democracy. VS

4. Too many frequent changes in gov. during economic crisis.
Coalition Government
Temporary alliance of several parties
Too many political parties in Europe
Short-lived b/c of too many disagreements.
Too many frequent changes in gov. during economic crisis.

5. Ppl. willing to sacrifice democracy for stability.
Opens door for authoritarian rule.

6. Weimar Republic New democratic gov. in Germany, 1919
Blamed for German’s WWI defeat & humiliation.

7. Inflation in Germany Printed money to pay France & GB
Money owed to France & GB as stated in Treaty of Versailles
Value of mark (German currency) declined greatly.
In 1922 bread cost was less than a mark, but cost increased to 10 marks in 1923 and up to 200 billion marks by 1928.
The hyperinflation of made Weimar Republic money virtually worthless.

8. Dawes Plan Kellogg-Briand
$200 million loan to Germany from American banks.
Charles Dawes, American banker.
Stabilize German currency & economy
1929, Germany stabilized
Kellogg-Briand
Peace pact between European countries to “renounce war”
Peace treaty between France/GB (Great Britain) & Germany

9. Great Depression in the US leads to world crisis
US sustained the world economy
Weakness of US economy:
Unequal distribution of wealth
Top 5% rich owned 33% of income
Americans buying less
Credit/loans
Overproducing crops & debt
Tariffs/Quotas
Buying at the margin stock market/speculation
US demanded money back from Europe
Quotas/tariffs: tax on imported goods.
Chain reaction of quotas/tariffs
World trade dropped by 65%
Depression felt in Europe & Latin America.

10. YouTube: The Depression & Germany
People stood outside in line, for what?
According the video, which country was affected the most from the world economic crisis?
How did things get worse?

11. France & GB Solutions to Crisis
Great Britain: High tariffs & taxes, regulate currency, lower interest rates, & avoid extreme politics.
By 1937, unemployment decreased about 50% & production rose above 1929’s levels.
France: formed coalition gov. of moderates, socialists, & communist, known as Popular Front.
Despite political instability, France preserved democracy.
Socialist solutions:
Scandinavian countries ( Denmark, Sweden, & Norway) :
Create jobs through public work projects
Raise pensions for elderly
Subsidies for housing, welfare, unemployment insurance.
US:
New Deal: Large public works projects to create jobs, welfare, & loans to farms/businesses.
Franklin D. Roosevelt preserved democracy.

12. Bonefish
List 6 factors/causes that led to the worldwide depression.

13. Exit Slip
In your opinion, which cause of the World Depression was the biggest cause? Why?