A Worldwide DepressionCHAPTER 15 SECTION 2

Warm Up

Vocabulary

Economic downturn =

A severe downturn in the economy

Ideas

What happens in a depression?

Record class responses

Visual

How do the picture and graphs relate?

Explain in your own words

Postwar Europe, page 470

Work with your partner (A/B partners)

Read section OUTLOUD together

Fill in the chart TOGETHER

Identify the problems (Implied or clearly stated)

List them

Identify any possible solutions to each problem

List them

Describe how each problem/solution worked out

The Weimar Republic, page 471

1. Germany lacked strong democratic tradition.

2. Germany had too many political parties.

3. Many Germans blamed the Weimar Republic for their loss in WWI and the punishment of Germany in the Treaty of Versailles.

Inflation Causes Crisis in Germany, page 471

Flow chart follows inflation cycle in Germany Expenses Spends Prints Money – Down Up Prints Continues Collapsing

Attempts at Economic Stability, page 471& Efforts at Lasting Peace, page 471-472

Work with your partner (A/B partners) Read section OUTLOUD together Answer the questions TOGETHER.

Use complete sentencesAvoid the terms “it”, “them”, “they”

Financial Collapse Slide 1 The U.S. financial success supported many

other countries though __________________loans

In 1929, the U.S. economy ________________ bringing the world’s economy down with it.failed

Financial Collapse Slide 2 Three major problems with the U.S. economy

were ___________ distribution of wealth

Uneven ___________ by business and agriculture

overproduction Americans buying ________

less

Financial Collapse Slide 3 Business Overproduction

U.S. made ______ of the world’s industrial goods One-half

Overproduction created huge ______________ profits

Most families were too ____ to buy goods, only the richest people earned large enough salaries to support buying goods

poor

Businesses ___________orders due to lack of sales reduced

__________ was then reduced by manufacturers which led to layoffs

production

This system created a bad _____ cycle economic

Financial Collapse Slide 4 In the 1920’s, improved ______ methods and machinery

increased crop yields, or amounts of food scientific

Overproduction and competition from foreign countries forced prices ________, leading to less profits down

Farmers did not make enough profit to pay ____________, forcing some farms to close loans

Unpaid loans made banks _________ fail

Financial Collapse Slide 5 The stock market was centered in ______ _________

New York

People wanted to get ________ on stocks and bought on margin

Rich

Buying on margin means buying stocks on a _____________ with a small down payment

loan

As long as prices go _____, people could sell stocks pay off loans and pocket the rest of the profit

up

If prices went _____, they could not sell the stock at a profit to repay the loans

down

Financial Collapse Slide 5 Part 2 Some stockholders started to _____________________ that

stock prices were higher than they should be, and started to sell them worry

This worry led to wide scale ____________________ with stockholders panic

So many stocks were sold at one time, with no one buying them up, that the stock market _________________________ crashed

The Great Depression Slide 6

Due to the stock market crash, the U.S. fell into the Great Depression, where business production declined and ________________________________ increased in large amounts unemployment

People lost their money in ________________________________ accounts because banks had no money to give to account holders savings

Farms were __________________ because loans could not be repaid to banks lost

The Great Depression Slide 7 America responded to the economic downturn by U.S. banks

demanding ___________________________ of loans from Europe repayment

Americans that had invested in Europe were taking their money ______________________ back

The U.S. placed high tariffs, or taxes, on European goods so people would ___________ American goods and money stayed in the U.S. buy

The Great DepressionSlide 7 – Part 2 Foreign nations ______________________ to U.S. tariffs by

increasing their tariffs on U.S. products, hurting the U.S. economy further responded

World trade dropped _________________%! 65%

The economy got _______________________ worse

__________________________________ went sky high unemployment