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6 - A Worldwide Depression

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31 views

6 - A Worldwide Depression

Uploaded by

lhoule1031
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© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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A WORLDWIDE DEPRESSION

BETWEEN
A WORLDWIDE DEPRESSION

SETTING THE STAGE


▸ European nations were rebuilding post
War

▸ The US aided with loans

▸ US and Japan came out better after war

▸ US had booming stock market

▸ Every major European country was nearly


bankrupt

▸ Many of the economic programs


introduced to combat the Great Depression
are still operating
Europe was in shambles after WWI
A WORLDWIDE DEPRESSION

POSTWAR EUROPE
▸ Europes absolute rulers had been overthrown

▸ Russia formed a Communist dictatorship

▸ Others formed democratic govs

▸ Most nations had no experience in democratic rule

▸ Led to political factions creating coalition


governments- alliances between parties

▸ Coalitions were unstable and led to fracturing

▸ People were willing to sacrifice democracy


for strong leader

Vladimir Lenin, communist leader of the New Soviet


Union
A WORLDWIDE DEPRESSION

WEIMAR REPUBLIC
▸ Named after city where national assembly
met

▸ Germany’s Democratic gov

▸ Weaknesses

▸ Germany lacked strong democratic


tradition

▸ Many different political parties

▸ Germans blamed the Weimar gov not


military leaders for defeat and Versailles
Treaty
Proclamation of the Republic in front of the Reichstag,
November 9, 1918
A WORLDWIDE DEPRESSION

WEIMAR REPUBLIC
▸ Financial Crises

▸ In order to pay for war the gov did not


raise taxes they printed more money

▸ Germans had high debt and war


reparations to pay

▸ Caused hyperinflation- value of German


mark plummeted

▸ Bread Prices

▸ 1918 Less thank 1 mark

▸ 1922 160 marks

▸ 1923 200 bilion marks


German children use stacks of money as building blocks
during the 1923 inflation
A WORLDWIDE DEPRESSION

ECONOMIC STABILITY
▸ Dawes Plan

▸ American banks
loaned Germany
currency to
strengthen its
economy

▸ Slowed inflation

▸ Attracted more
investors from the
US

▸ German factories
Diagram of the Dawes Plan
produced at a high
level again
A WORLDWIDE DEPRESSION

THE GREAT DEPRESSION

▸ People purchased stocks on Margin

▸ Paying only a portion of the stock


price

▸ The stock market crash caused a debt


crisis

▸ Unemployment increased, production,


prices and wages declined

▸ Banks closed costing people their savings

▸ Farmers lost heir lands

▸ 25% of America was out of work


Shantytown in Seattle nicknamed a “Hooverville” as
Americans blamed the depression on president Herbert
Hoover
A WORLDWIDE DEPRESSION

THE GREAT DEPRESSION

▸ Depression increased the US’s


isolationist policy

▸ US gov focus on internal recovery

▸ Did not worry about Japan’s


invasion of Manchuria

▸ Election of Franklin D. Roosevelt


would start a slow movement towards
intervention

“American Isolationism: Looking Our War for a Blood


Donor” May 14, 1933
A WORLDWIDE DEPRESSION

A GLOBAL DEPRESSION
▸ Great Depression caused American
bankers to withdraw their money from
overseas

▸ America placed high tariffs on foreign


goods

▸ Other countries did the same

▸ Caused a 65% drop in word trade

▸ Germany and Austrian hit hard

▸ Austria’s largest bank failed

▸ Asian farmers and workers suffered

▸ Latin American exports collapsed Unemployed men during the depression


A WORLDWIDE DEPRESSION

BRITISH RESPONSE
▸ Elected the National Government

▸ Multiparty coalition

▸ Passed protective tariffs

▸ Increased taxes

▸ Regulated currency

▸ Lowered interest rates

▸ Helped to cut unemployment

▸ Avoided political extremes and


preserved democracy The National Government of the 1930s was formed in response to
the Great depression, which affected Britain’s ability to manage
its finances.
A WORLDWIDE DEPRESSION

FRANCE’S RESPONSE

▸ France did not rely on trade

▸ Depression caused political instability

▸ The Popular Front

▸ Coalition of moderates, Socialists,


and Communists

▸ Passes reforms to help workers


Criticism of the Popular Front
▸ Reforms didn’t work

▸ France was able to maintain


democratic gov
A WORLDWIDE DEPRESSION

USA’S RESPONSE
▸ Hoover did little to help

▸ FDR was elected

▸ Implemented the New Deal

▸ Government employment through


job programs

▸ Based on economic theory of John


Maynard Keynes

▸ British Economist

▸ Wrote- General Theory The National Government of the 1930s was formed in response to
the Great depression, which affected Britain’s ability to manage
its finances.

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