1. A Global Depression Europe After the War New Democracies Are Unstable
Weimar Republic Is Weak
Inflation Causes Crisis in Germany
Attempts at Economic Stability
Efforts at a Lasting Peace
The Great Depression
A Flawed U.S. Economy
The Stock Market Crashes
The World Responds to the Crisis
Britain Takes Steps to Improve Its Economy
France Responds to Economic Crisis
Socialist Governments Find Solutions
Recovery in the United States

2. World War 1
Europe after war world 1

3. Effects after the world war
Countries directly involved I Winner
Countries directly involved II Loser
Countries indirectly involved I Colonies

4. Winner, Tech improvement, reparation Loser
Loser, paid the cost, depression
Raise taxes to pay the payment [ colonies ]
Germany also faced enormous economic problems that began during the war. Unlike Britain and France, Germany did not greatly increase its wartime taxes. To pay the expenses of the war, the Germans simply printed money, after Germany’s defeat, this paper money steadily lost its value. Burdened with heavy reparations payments to the allies and with other economic problems, Germany printed even more money; The result was the value of the mark, as Germany’s currency was called, fell sharply. Severe inflation set in, Germans needed more and more money to buy even the most basic goods. For example, in Berlin a loaf of bread cost less than a mark in 1918, more than 160 marks in 1922, and some 200 billion marks by late People took wheelbarrows full of money to buy food. The mark had become worthless.
Consequently, people with fixed incomes saw their life savings become worthless. The money people had saved to buy a house now barely covered the cost of a table. Many Germans also questioned the value of their new democratic government.

5. Attempts at economic stability
Germany recovered from the 1923 inflation largely thanks to the work of an international committee.
Put into effect in 1924, the Dawes plan helped slow inflation.
German economy began to recover, it attracted more loans and investments from the united states.

6. Inflation causes crisis in Germany
Germany also faced enormous economic problems that began during the war.
Severe inflation set in, Germans needed more and more money to buy even the most basic goods.
Consequently, people with fixed incomes saw their life savings become worthless.

7. 10 Pfennig, Copper-Nickel Would buy ½ dozen eggs or 2 ½ pounds of potatoes. Bread is 13 Pfennig for a 1 pound loaf. The Copper-Nickel 10 Pfennig was introduced in 1873 as part of the German Empires first unified coinage. It would continue to be struck until 1916

8. 100 Billion Mark, Nov City of Freital On November Billion Mark would buy 3 pounds of meat. Bread is 3 Billion Mark a loaf. On November Billion Mark would buy 2 glasses of beer Bread is 80 Billion Mark a loaf.

9. Colonies couldn’t have a economic boost
They had to pay more taxes
Cannot establish a economic base.

10. A Flawed U.S. Economy The Stock Market Crashes A Global Depression
The Great Depression
A Flawed U.S. Economy
The Stock Market Crashes
A Global Depression

11. Weaknesses of U.S. economy
Rising productivity → Overproduction
No equal distribution of wealth
The richest 5% received 33% of all the income
Agriculture: less competitive
In competition to Australia, Latin America, and Europe, despite technological advance, US had hard time
Less demand for American products than pre-war times.

12. Stock Market Crashes Over-estimated stock market
Investors (mainly of middle class) began buying stocks on margin
high risk: remainder of fund for stocks were financed by stockbrokers
Some investors had anticipations that the stock prices were too high, over-estimated.
Tuesday, October 24th, through the belief that the rate will decline, investors sold their stocks, leading to a downfall in the stock market

13. Global Depression
United States during the post-war era was the center of world economy
Thus the downfall of U.S. economy had great effect on global trade
Half of the European export was to U.S.
High tariffs on each nation after the downfall of U.S. economy reduced global trade by 65%

14. Germany and Austria in particular were put into financial panic, starting with Austria’s largest bank going out of business
European nations that depended on United States in their attempt to reconstruct their economy failed to do so for American investments have stopped and had hard time with their debts
Japan also suffered from high unemployment

15. Video on Great Depression

16. The World Responds to the Crisis
Britain Takes Steps to Improve Its Economy
France Responds to Economic Crisis
Socialist Governments Find Solutions
Recovery in the United States

17. Britain depended on foreign trade, Depression hit Britain severely
*Great Depression – challenged economic and political system
 GREAT BRITAIN
Britain depended on foreign trade, Depression hit Britain severely
National Government (multi-party coalition)
designed to rescue the nation from economic disaster
passed high protective tariffs, increased taxes and regulated the currency
lowered interest rates to encourage industrial growth
Brought slow but steady recovery
Unemployment cut in half, production rise
Avoided political extremes and preserved democracy

18. 1930- heavily agricultural and less dependent on foreign trade
FRANCE
1930- heavily agricultural and less dependent on foreign trade
1935- million unemployed
Economic crisis contributed to political instability ( government formed and fell)
Growth of anti-democratic forces frightened political leaders
Popular Front
1936- moderates, Socialists & Communists formed a coalition
passed series of reforms – help the workers
pay increases, holidays with pay, 40 hour work week
Unemployment high but preserved democratic government

19. SOCIALIST GOVERNMENT
Built recovery program on existing tradition of cooperative community action
Sweden- government sponsored public works projects, kept people employed and producing
Scandinavian countries (northern Europe) - raised pensions for elders, increased unemployment insurance, subsidies for housing & other welfare benefits
Benefits paid by taxing all citizens
Private and cooperative businesses prospered
Democracy remained

20. UNITED STATES 1932- Franklin D. Roosevelt voted as a president
Reformed a program called New Deal
Public works projects, provided jobs for the unemployed
Agencies gave financial help to business and farms
Public money spent on welfare & relief programs
Imposed to reform the stock market & banking system
Slow recovery but reformed the American economic system
Roosevelt’s leadership preserved the country’s faith in its democratic political system
**New Deal- U.S. president Franklin Roosevelt’s economic reform program designed to solve the problems created by the Great Depression
**Franklin D. Roosevelt- who created the program New Deal

21. THE END