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Chapter 15-2 A Worldwide Depression

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

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Postwar Europe

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Kaiser William II Czar Nicolas IIEmperor Franz Joseph

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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 Germanys financial crisis.

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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.

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

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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 ________

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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

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

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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

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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.

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Democracy and capitalism were heavily blamed for the worlds 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.

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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????????

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However, other leaders offered alternative solutions Lenin MussoliniHitler CommunismFascism

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Chapter 15 Section 2 A Worldwide Depression pgs. 470-475

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

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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?

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