the great depression: post wwi economic problems ms. payne september 21, 2011
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The Great Depression: Post WWI Economic Problems ESSENTIAL QUESTION: How did the Treaty of Versailles and world-wide depression impact Europe in the years between World War I and World War II?TRANSCRIPT
The Great Depression:The Great Depression:Post WWI Economic ProblemsPost WWI Economic Problems
Ms. Payne September 21, 2011
The Great Depression:The Great Depression:Post WWI Economic ProblemsPost WWI Economic Problems
SS6H7aDescribe major developments following WWI: the Russian Revolution, the Treaty of Versailles, world-wide depression, and the rise of Nazism
The Great Depression:The Great Depression:Post WWI Economic ProblemsPost WWI Economic ProblemsESSENTIAL QUESTION:
How did the Treaty of Versailles and world-wide depression impact Europe in the years between World War I and World War II?
ISN: Cornell Notes ISN: Cornell Notes
Definitions:Economic
Depression:
Inflation:
Stock Market Crash:
period of low economic activity when many people lose their jobs
period when money loses it value and businesses raise prices
a sudden dramatic decline of stock prices across a significant cross-section of a stock market, resulting in a significant loss of paper wealth
Worldwide Depression
Depression in GermanyDepression in Germany
FactorsGerman
Resentment and Humiliation
The Great Depression:The Great Depression:Post WWI Economic ProblemsPost WWI Economic ProblemsGermany
◦made the 1st of reparation payments in 1921
◦claimed they could not afford to pay anymore
The Great Depression:The Great Depression:Post WWI Economic ProblemsPost WWI Economic ProblemsFrance’s ResponseUse German
payments to rebuild their own economy.
Sent troops to take German’s valuable mines and factories
The Great Depression:The Great Depression:Post WWI Economic ProblemsPost WWI Economic ProblemsGermany’s Responseworkers at factories and mines went on strike protest France’s takeover.began printing more money to pay wages
Caused inflation Value of money ↓ Businesses prices ↑Result takes more $$$ to buy things.
people needed wheelbarrows full of money to buy a loaf of breadThis German woman is using German paper money to keep her stove going. It was so worthless, the best use was for firewood!
The Great Depression:The Great Depression:Post WWI Economic ProblemsPost WWI Economic ProblemsCauses of the Great Depression
Crash of the U.S. stock market
The Great Depression:The Great Depression:Post WWI Economic ProblemsPost WWI Economic ProblemsCauses of the Great DepressionOverproductionInability to pay back loans
◦ Unemployed◦ Investors
Banks wanted loans paid backBanks collapsed many people lost
their entire savings.
The Great Depression:The Great Depression:Post WWI Economic ProblemsPost WWI Economic ProblemsThe Great Depression spreads to Europe◦American investors pulled their
money out of European banks.◦The European economy collapsed as
well.◦Half of Germany’s population was
unemployed.
Unemployment RatesUnemployment Rates
The Great Depression:The Great Depression:Post WWI Economic ProblemsPost WWI Economic Problems
ImpactRise of Nazism & Hitler
1931 German Financial Crisis1931 German Financial CrisisPBWorks
http://ss6paynelessons.pbworks.com/w/page/45461718/Worldwide%20Depression
YouTube http://youtu.be/IFSad6Mph
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Causes:Long-Term
Huge debt resulting from WWI
European dependence on American Loans
Widespread of creditOverproduction of goods
paired with a decline in demand
Worldwide Depression
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Causes:Short-Term
Stock Market Crash 1929Banks demand repayment
of loansAmericans can no longer
give loans to other countries
Businesses and factories fail
High protective tariffs
Worldwide Depression
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Effects:Short-term
Vast Unemployment and misery
Bank failures and collapse of credit
Loss of faith in capitalism and democracy
Authoritarian leaders gain support
Worldwide Depression
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Effects:Long-term
Nazis take control of Germany
Scapegoats are blamed for economy
Fascist leaders gain control of Eastern Europe
World War II begins
Worldwide Depression
ISN: Cornell Notes ISN: Cornell Notes
Summary:Worldwide Depression