Worldwide Depression

Postwar Europe

• The Great War left every major European country nearly bankrupt

• Most European nations had democratic governments • Coalition Government: temporary alliance of several

parties • These governments were weak and were not able to

develop strong leadership

The Weimar Republic

• Germany’s new democratic government• Millions of Germans blamed this

government for the country’s defeat and humiliation

• Germany faced economic problems- inflation

• America loaned $200 million from banks to stabilize German currency

• This plan slowed inflation and helped German factories produce as much as they were before the war

Financial Collapse

• America’s economy recovered quickly after the war • By the 1920’s, the economy was booming from big

business• U.S. industry was boosted by the war • During the 1920’s, there was massive spending and big

investments in the stock market

• BUT….

Financial Collapse

• The wealth was not evenly distributed• 60% of all American families earned less than $2000 a year

which caused them not to be able to buy the goods that America was producing too much of

• Farmers, black population, recent immigrants, and workers in old industries did not prosper due to low wages, new technology, and being laid off

• Many farmers could not pay off bank loans which weakened banks and forced some to close

• So…..

The Stock Market Crashes

• Between the 19th and the 24th of October, millions of shares were sold

• Tuesday October 29th • 16 million shares sold• No buyers found• Ticker tape machines break due to pressure• Many investors are ruined

Overproduction and Underlying

Poverty

Stocks of unsold goods Demand falls

Profits fall People start to sell shares Panic!

CRASH!!!

Countries affected around the world

• Because of war debts and dependence on American loans and investments, Germany and Austria were hit hard

• Congress placed high tariffs on imported goods • In Asia, felt the effects as the value of exports

fell

Confronting the Crisis

• Britain • Passed high protective tariffs• Increased taxes• Regulated the currency• Preserved democracy

Confronting the Crisis

• France • Moderates, socialists, and communists formed

a coalition called the Popular Front • The Popular Front passed a series of reforms to

help the workers • Preserved democratic government

Confronting the Crisis

• United States • Franklin D. Roosevelt- President during the Great

Depression who sought to restore American’s faith in their nation

• Created the New Deal • Reform program that helped create jobs for the

unemployed• Created Welfare and relief programs • Regulations were imposed to reform the stock

market and banking system

Activity

Directions:

On the back of your notes in the spaces provided, answer these questions about each picture and yes it will be turned in for a grade :

1. What is going on in the picture?2. What type of message is it sending?

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