1. Boom to Bust on the World Stage
The 1920s & 1930s
Boom to Bust on the World Stage

2. Weimar Republic Gov. of Germany that accepted the Versailles Treaty
Inflation- the devaluation of money, started by printing to much $$
Example: loaf of bread prices
less than a mark ($)
marks ($)
,000,000,000 marks ($)
Savings became worthless
Tells the Allies it can’t pay war reparations
France threatens to invade, US negotiates new payment plan.
By 1924, German economy stabilizes and starts to recovers

3. The Bottom Falls Out US was the base of the World economy
Made half of the worlds industrial goods
But richest 5% held 1/3 of the $$$
60% of Americans made less than $2,000 a year
Stock market (Wall Street)
Middle class invested with borrowed cash
October 1929 US stock market crashes (Black Tuesday)

4. Punching the Numbers: In the United States: $30 Million disappear
unemployment on the rise
By 1932
5,200 Banks fail
Unemployment 17 million
1/3 Americans are out of work
34 million have no income
20,000 business firms collapsed
21,000 Americans commit suicide
9 million lost their savings

5. Worldwide Disaster Worldwide production of goods fell 38%
World trade dropped 65%
Britain = 18% unemployed
France = 15 to 24% unemployed
Japan = 3 million unemployed/mass starvation
Germany= 6 million unemployed

6. Workers cannot afford goods
Why?
Workers cannot afford goods
Downward
Economic
Spiral
Stores buy less
Less workers needed
Factories make less

7. Europe Recovers Slowly
Soviets were in the middle of their 5 year plan and had record grow
Britain and France cut costs and raise taxes and slowly recover
Worried about Communists on the Left and Fascist on the Right
Weak governments with many workers’ strikes and protests
US- Franklin D. Roosevelt and the “New Deal”
Government employed millions on public works projects
Spent $10 Billion on roads, bridges, public buildings and airports

8. What about the rest…
Japan, Italy and Germany take different route to recovery