1. The World Confronts the Crisis
The Great Depression
The World Confronts the Crisis

2. The Great Depression Economic Downturn A Global Depression
Great Depression—long business slump of 1930s
Marked by bank failures, loss of savings, unemployment
A Global Depression
American economic problems create problems in other countries
American investors withdrew in Europe
Placed high tariff on imported goods-> backfires why?
World trade falls sharply- 65% and unemployment rates skyrocket
Effects Throughout the World
Germany and Austria suffer greatly, why? Who are they borrowing money from?
Asia suffers- depend on selling exports overseas
Latin America suffers- demand for sugar, beef, and copper drops so does the price

3. The World Confronts the Crisis
Britain Takes Steps to Improve Its Economy
British voters elect coalition government, avoids political extremes
Passes high protective tariffs, increased taxes, regulates currency
Government brings about slow, steady economic recovery
By 1937 unemployment had been cut in half
Preserves democracy by avoiding political extremes
France Responds to Economic Crisis
France has more self-sufficient economy, heavily agricultural less dependent on foreign trade
Preserves democracy in spite of economic troubles
Socialist Governments Find Solutions
Public works programs help Scandinavian countries recover- DEMOCRACIES REMAIN INTACT
Sweden, Denmark, Norway govt. sponsored public works programs

4. Recovery in the United States
Franklin D. Roosevelt—American president during Depression
FDR Inaugural Address
New Deal—Roosevelt’s program of government reform to improve economy
Large amounts of money spent on welfare and relief programs