1. Towards the Great Depression

2. Name several financial crises in European History.

3. How did these problems get solved? Or Failed Solutions?

4. How did the worldwide economy fail so quickly after WWI? Financial crisis from the war and peace settlement Production and distribution fell world-wide Most governments refused to run budget deficits

5. United States’ Role U.S. sought loans and money owed to them by the Allied countries. Private American capital flowed through Europe during the 1920’s

6. Dawes Plan Sought to retrieve all war reparations and funnel the money directly to the United States.

7. Investing Americans speculated, took out loans, and invested in the Stock Market. The Bubble Burst with many not being able to pay back loans. Banks shut down.

8. Europe’s Economy No more American capital flowed into Europe after the stock market crash. Hoover announced 1 year of no reparation payments. Lausanne Conference- end reparations

9. Agriculture Wheat prices plummet High unemployment Eastern Europe hit the hardest

10. John M. Keynes Pgs. 910-11

11. John Keynes “General Theory of Employment, Interest, and Money.” Government should spend more to expand overall demand during economic troubles.

12. Homework: Read Pages 912-914 Describe the conditions in Great Britain and France during the depression. How did each democracy combat the depression? What events occurred and leaders emerged during this time period?