1. Worldwide Depression Mrs. Gurzler World History

2. Questions of the Day What is an economic depression? How do they happen?? What is inflation? What is a recession?

3. Differences between… An old joke… –A recession is when your neighbor loses their job. A depression is when you lose your job. –A recession is a short economic decline, while a depression lasts for a long period of time. –Recession are a natural part of an economic cycle.

4. Inflation Economic situation that comes about when the amount of money in circulation increases. The more money there is, the less the money is worth.

5. The Economic Situation 1922 – For every US Dollar  162 Marks A Couple Months Later… –7,000 Marks for every US Dollar! –By 1923, it was printing 400 quadrillion marks a day!!! –With so much money in circulation, what happens to the money?

6. The Rise in Bread Prices (in marks) December 1918 0.5 December 1921 4 December 1922 163 January 1923 250 March 1923 463 June 1923 1,465 July 1923 3,465 August 1923 69,000 September 1923 1,512,000 October 1923 1,743,000,000 November 1923 201,000,000,000

7. The Rise of Other Goods Item1913 Summer 1923 Nov. 1923 1 egg0.085,00080,000,000,000 1 kg butter2.7026,0006,000,000,000, 000 1 kg beef1.7518,8005,600,000,000, 000 Pair shoes12.001,000,00032,000,000,000,000

8. Emergency Money, “Notegold” During hyperinflation, some towns printed emergency money called “Notegolds.” They would depict anti-Jews scenes.

9. German Inflation

10. Inflation Madness In 1923, a woman feeds her stove with German marks because they can no longer afford firewood with it.

11. German Mark

12. What Stopped the Madness? Charles Dawes, an American banker, provided a loan for Germany to help stabilize its currency. They established a more realistic payment plan for their debts from WWI. By 1929, Germany was all set.

13. Great Depression

14. Stock Market CRASH!

15. GLOBAL DEPRESSION American investors withdrew money from Europe. They raise tariffs and other countries decide to do the same. Why would they raise tariffs?? This hurts world trade and it drops by 65% Unemployment rates soar.

16. Effects Around the World 1931 - Austria’s national bank fails! Europe is in pain from the tariffs on their goods. Still able to preserve democracy. In Asia, farmers are hurt as the value of exports fell in half in 1929 to 1931. Latin America is hurt – less Americans and Europeans can afford sugar and coffee.

17. Samples of Political Cartoons