The Wonderful, Fun World of the Depression

The depression of the 1930s, most commonly referred to as the Great Depression, was international in scope and not limited to the American experience

Wake Up Call!!!

It actually began in Europe because of: Severe damages from

World War I so everything had to be rebuilt.

The heavy reparations Germany had to pay for the war. Germany couldn’t

repay the Allies who needed the money to rebuild.

How does the Depression

Start?

Belgium 1915

The War’s Effect on the Job Market

Although spending to fund the war had nearly bankrupted several countries, employment had been high because countries were building things for the soldiers.

As soldiers returned home from fighting, some soldiers found that their bosses had given their jobs away. Others took their jobs back from replacements.

Unfortunately, the Allies did not realize how important Germany was to the European economy.

Trade and production all over Europe suffered due to a weak Germany.

Remember the Allied goal was to punish Germany? They succeeded!

Reparations took what little money Germany had available.

Also, in the Treaty of Versailles, they had been forced to give up valuable land, willed with natural resources and factories.

Germany hit the hardest!

So Germany continued printing more money with no real value, creating hyperinflation.

In 1923, France took Germany’s major industrial region, the Ruhr Valley, as further payment of the war debt.

The French Strike Again!

Due to the economic problems and their need to rebuild, European countries stopped investing and buying from other countries (including us). This hurt those countries’ economies.

What about the United States?