1. The Victorious Democracies The Interwar Period

2. The United States Isolationism vs. Interventalism Avoiding future wars International Disarmament Conference (1922) Kellogg – Briand Pact (1928) International agreement where states promise not to use war to resolve disputes

3. The Undoing of the US 1920’s – US the world power Technology boom, Wall Street bubble 1930’s – Crash, economic ruin FDR’s New Deal (socialism in US)

4. Stock Market Crash Many investors margin buying Bubble developed Panic sell-off wiped out fortunes 29 October 1929 Dow fell 40% and $30,000,000,000 lost Banks Runs – banks out of money because of loans – banks fail

5. A Depression Era Bank Run

6. The Great Depression

7. What is a Depression? A severe economic downturn High unemployment Low GDP (sum of all goods and services produced by a nation) Consumer spending, investment spending, government spending, net exports

8. The Reality of the Great Depression Hundreds of banks close which wipes out billions in savings In 1933 364,000 farms went bankrupt GDP decreased by 40% Unemployment Rate = 25%

9. Unemployment

10. Agricultural Overproduction Farmers try to produce more to lower cost and spark demand Nothing happens but huge surpluses of crops, not worth the money even to sell Farmers lost huge amounts of money and some even burned their crops and poured out milk EVEN AS PEOPLE STARVED!

11. The Floundering Victors England Unemployment, war debts, Britain failing Strikes (army sent in to clear, end up running industries) Socialist Ramsey MacDonald PM Many fear this is the start of communism

12. England The Labour Party gains strength in gov’t, begins to move the country toward socialism The “Irish Question”?

13. The Irish Question Sinn Fein – cultural revolution that become political Tried to take Dublin during WWI Black and Tans – paramilitary group that forced the formation of the IRA Solution: 1922 – moderates in Ireland and Britain reached an agreement Self-governing Irish Free State

14. The Other “Winner”? France Physical/Economic and political ruin 50% of all 18-32 year olds dead Socialist Leon Blum new PM Fascists rising… Terrified of Germans, built the Maginot Line