GREAT DEPRESSION

Objective:

Describe the causes, development and

worldwide effects of The Great
Depression.
A weak League of Nations
French Demands
Inflation in Germany
1914 4.2 G. Marks = 1 US dollar
1923 Nov. 1 130 billion G. Marks = 1 US dollar
1923 Nov. 30 4.2 trillion G. Marks = 1 US dollar

 August 1924: Dawes Plan: 3 provisions.

 1925 Treaty of Locarno
Germany: inflation
France, strongest power in Europe, had to rebuild,
political chaos= June 1936: coalition of leftist parties
Gov.
Popular front gov. Program for workers named French
New Deal.
Gave workers the right to collective bargaining.
40 hour workweek in industry
2 week paid vacation
Minimum wage.
Great Britqain
Industries declined
Rise in unemployment 2 million out of work in 1921
Labour party fail to solve economic probolems and fell from power
in 1931
A new gov. Led by conservatives.
Traditional policies of balanced budget and protective tariffs.
John Maynard Keyness: Condemmned the theory that the
depression would fix itself in a free economy.
Unemployment came from a decreas in demand not form over
production. Gov. Should finance projects to give work to people
and increase demand.
 CAUSES OF THE GREAT DEPRESSION

Unequal distribution of wealth

Over production in industry and
agriculture due to WWI and better
technology Consumism
Lessening demand of consumer goods
 CAUSES OF THE GREAT DEPRESSION

Decreasing production
Unemployment
October Stock Market crash and financial
panic
Economies depended on the wealth of the
United States
DEVELOPMENT OF THE GREAT DEPRESSION
High demand for agricultural products and
raw materials during the war.
After the war, demand lessens and prices
fell.
Farmers, miners and suppliers of raw
materials earn less, so…
Farmers, miners and suppliers bought less
DEVELOPMENT OF THE GREAT DEPRESSION

Better technology
Factories made more products faster.
Overproduction
Demand slowed. (unequal districution of wealth)
Factories cut back on production. Summer
1929
Workers lost their jobs.
Autum of 1929: The October stock market crash
agravated the economy decline.

•Prices in the stock market were

at their highest.
•Investors acquired stocks
through risky methods.
•Oct. of 1929, many people
nervous because of economy
sold their stocks at once.
•Stock prices crashed.
 STOCK MARKET CRASHED

Financial panic set in.

Stock prises
crashed.
Investors lost their
fortunes.
People ran to the
banks to get their
money.
Banks closed.
 THE GREAT DEPRESSION SPREADS TO
EUROPEAN COUNTRIES
European economies depended on the economy of the
USA
The USA:
 stopped making loans to other countries. (Germany,
Britain, France…)
demanded repayment of foreign loans.
Germany could not make its reparations payments.
France and Britain were not able to make their loan
payments.
THE GREAT DEPRESSION SPREADS TO LATIN
AMERICA, AFRICA, AND ASIA
Desperate governments try to protect their
economies from foreign competition.
USA imposed the highest tariffs in its history.
Other nations raised their tariffs too.
In 1932 and 33, global world trade sank.
 European countries no longer acquired raw materials from
Latin America, Africa, and Asia.
 Missery spread to Latin America, Africa, and Asia.
 HOW DID THEY FIX IT?

President of USA, Herbert Hoover, firmly

believed that the government should not
intervene in private business matters and
cut public spending.
President Franklin D. Roosevelt argued
that the government had to take an active
rol in combating the Great Depression and
introduced the New Deal.
 THE NEW DEAL
New Deal: a massive package of economic
and social programs
New laws regulated stock market and
protected bank deposits.
Government programs created jobs and gave
aid to farmers.
New Social Security system provided
pensions and other benefits for the elderly.
The New Deal eased the suffering for many.
 EFFECTS OF THE GREAT DEPRESSION

Widespread hunger, poverty and

unemployment
Worldwide economic crises
Franklin D. Roosevelt´s New Deal.
Loss of faith in democracy. People lost faith
in the abiity of democratic governments to
solve the problems of the modern world.
Effects of the Great Depression

•Missery and hoplessness

created a fertile ground for
extremists who promissed
radical solutions
• Benito Mussolini
• Adolf Hitler

•World War II
1st picture in ppt) Great depression cartoon USA
http://images.google.com.mx/imgres?imgurl=http://bp3.blogger.com/_Bw6w
UZgcQOI/Rf1UJPpAFRI/AAAAAAAAATU/st18wqG0QVU/s400/depression%2
Bcartoon.gif&imgrefurl=http://publicreader.blogspot.com/2007/03/americas-g
reat-depression-two-books.html&h=400&w=350&sz=309&hl=es&start=40&um
=1&tbnid=yfriRgjl1mj0MM:&tbnh=124&tbnw=109&prev=/images%3Fq%3Dima
ges%2B%2BGermany%2BGreat%2Bdepression%26start%3D20%26ndsp%3D20
%26um%3D1%26hl%3Des%26sa%3DN
2nd picture in ppt) GD news papers
http://www.tea.state.tx.us/student.assessment/resources/online/2006/grade11
/ss/images/53graphicaa.gif

www.tea.state.tx.us/.../images/53graphicaa.gif
3rd picture in ppt) GD Montreal City Bank run
http://upload.wikimedia.org/wikipedia/en/1/1c/Montreal_City_Bank_Run.gif
http://images.google.com.mx/imgres?imgurl=http://upload.wikimedia.org/wi
kipedia/en/1/1c/Montreal_City_Bank_Run.gif&imgrefurl=http://plawiuk.blogs
pot.com/2007_09_01_archive.html&h=392&w=550&sz=113&hl=es&start=86&u
m=1&tbnid=cwMXRFXratdaeM:&tbnh=95&tbnw=133&prev=/images%3Fq%3Di
mages%2B%2BGermany%2BGreat%2Bdepression%26start%3D80%26ndsp%3
D20%26um%3D1%26hl%3Des%26sa%3DN

4th picture in ppt) Great depression Hitler

library.thinkquest.org/12307/media/14495.jpg