Download - I nflation Simulation
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Inflation Simulation
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Prices
• Rent 2 Skittles• Food 1 Skittle• Utililties 1 Skittle• Incidentals 2 Skittles
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New Prices
• Rent 40 Skittles• Food 30 Skittles• Utilities 30 Skittles• Incidentals 20 Skittles
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Newest Prices
• Rent 4000 Skittles• Food 4000 Skittles• Utilities 4000 Skittles• Incidentals 3000 Skittles
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What is Inflation?• The word `inflation' describes a situation in which
prices are rising and the value of money is falling.
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Hyperinflation in Weimar Germany
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Invasion
• Late in 1922 Germany failed to pay an instalment of reparations on time.
• French troops occupied Germany's main industrial region, the Ruhr.
• They wanted to keep Germany weak. – A weak Germany meant that France was safe from
the threat of attack.
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German Response
• Workers go on strike because they know it will just benefit the French
• All the workers on strike had to be given financial support. – The government paid its way by printing more and more
banknotes. – Germany was soon awash with paper money. – The result was hyperinflation.
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Rich Kids?
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Play Time
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Fuel
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Street Sweeping
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Group Scenario Questions
• Work on the following questions in your group.
• You only need one piece of paper in the group.
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THE GREAT DEPRESSION
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LONG-TERM CAUSES
• Huge debts resulting from the costs of World War I
• Widespread use of credit• Overproduction of goods while demand was
falling• Rising wages for industrial workers while farm
earnings were falling
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IMMEDIATE CAUSES
• New York stock market crash ruins investors
• Banks demand repayment of loans• Without capital, businesses and factories
fail
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IMMEDIATE EFFECTS
• Vast unemployment and misery• Loss of faith in democracy and capitalism• Authoritarian leaders gain support
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LONG-TERM EFFECTS
• Nazis take control of Germany• Fascist leaders gain support in Eastern
Europe• Governments experiment with social
programs• People blame scapegoats for economic
woes• World War II begins
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Great Depression in the US Video
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Great Depression Reading
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Great Depression Questions
• Add your group’s answers to the following questions to the back of your Scenario.– How did the Great Depression affect his
childhood?– How did it affect his community?– What did they do for entertainment?– How did his life change when the Depression
ended?– How does the depression continue to shape
his life?