1. Chapter 15-2
A Worldwide Depression

2. Learning Targets I can………………………..
3) Describe the struggles that the world faced in the 1920’s and 1930’s.
6) Describe the connections between the end of World War I and the start of World War II.

3. Postwar Europe

4. Kaiser William II
Czar Nicolas II
Emperor Franz Joseph

5. Weimar Republic 1919 Had serious weaknesses from the start
Germany never experienced democracy before.
Had many disagreeing political parties.
Most Germans blamed the Weimar Republic …for losing the war AND accepting the unfair …Treaty of Versailles.
The new government made huge mistakes in …attempting to solve Germany’s financial crisis.

7. Financial Crisis In Germany
Inflation
Because they did not increase taxes, the German government simply printed money to pay for wartime expenses. This drastically lowered the value of the peoples’ money.

8. The value of the German ‘mark’ (dollar) fell sharply.

9. Understanding Inflation
Germany has huge war expense
Government spends more than it takes in
Germany prints more money
Value of the money goes _______
Prices go ____
Government prints _______________
Economy is in danger of _________
Cycle ________

10. Attempts at Peace
Kellogg-Briand Peace Pact: All major nations agreed to renounce war.
Agreement was to be enforced by the League of Nations.
The League was weak from the beginning because the U.S. refused to join

11. The American economy continued to prosper after World War I.
The Roaring 20s

12. The U.S. economy falls into “The Great Depression”
The Stock Market crashes
Unemployment rates rose
Industrial production and wages decreased
By 1932, factory production was cut in half
Thousands of businesses failed
9 million people lost all their savings
1/4 of all Americans lost their jobs

13. The Depression Turns Global
U.S. bankers demanded repayment of their overseas loans.
American investors withdrew their money from Europe and raised tariffs.
European nations responded by raising tariffs (taxes on imported goods).
World trade dropped by 65%
Germany and Austria were the hardest hit.

14. Democracy and capitalism were heavily blamed for the world’s economic problems.
Some leaders offered hope and plans for recovery.
Franklin D. Roosevelt 1932
Began a program to reform the American economic system called
the New Deal.

15. The New Deal
Large sums of government money was spent on public works projects in order to create jobs.
The government also gave money to private businesses and farmers in an attempt to maintain jobs.
Relief programs including welfare began.
FDR believed that government spending would stimulate the economy into recovery.
Sound familiar????????

16. However, other leaders offered alternative solutions
Lenin
Mussolini
Hitler
Communism
Fascism

17. A Worldwide Depression
Chapter 15 Section 2
A Worldwide Depression
pgs

18. Section 2 Assessment page 475
Type the questions and answers from this slide onwards on a word document and submit it on haikuclass.
The Great Depression
What did President Roosevelt do to try to counter the effects of the Great Depression

19. Answer these questions
How did WW1 change the balance of economic power in the world?
What problems did the collapse of the American economy cause in other countries?
How did Europe respond to the economic crisis?

20. List one cause for each of the following effects:
American Market for European goods dropped
Unemployment rates soared
European banks and businesses closed