15.2 A Worldwide Depression

Ms. BielefeldSpring 2012

Postwar Europe Europe was bankrupt after WWI Monarchs & Emperors lose power &

new unstable democracies are created Form coalition government—

temporary, multi-party alliances Changes lead to instability

13th c. Cloth Hall & cathedral of Ypres, Belgium

Same building…TODAY!

Weimar Republic Germany’s democratic government formed in

1919 that’s very weak Inflation—value of money falls dramatically b/c of

over printing Hyperinflation—govt prints more money

businesses raise prices govt prints more money businesses raise prices etc. Eventually money becomes WORTHLESS

American loans help revive German economy Germany & France sign treaty pledging no more

wear

Children using

stacks of money

as blocks

because they

couldn’t afford

toys & money

was the most

worthless thing

in the market

German woman

feeding a stove

with currency

notes, which

burn longer

than the

amount of

firewood they

can buy.

America’s Financial Collapse

Uneven distribution of wealth Overproduction & less demand Farmers struggle to pay loans & lose

land Stock market crash October 29,

1929--“Black Tuesday” Stock prices soar & people buy on credit

(they don’t really have the $) Stock market crashed & people lost their

money

Images from the Great DepressionDorothea Lange photographed many and Is world-famous for it…look at their faces…Look where they lived…look at the dust!

The shack is called “hooverville” after thePresident Hoover who the blamed

A car driving with its lights on during the day

A dust storm approaches

On the way to California

A farmer sifts the dust off the top of his dead crop

A young boy shielding his mouth and face from the dust

The Great Depression

Long business slump of 1930s Marked by bank failure, loss of

savings, unemployment America’s economic problems create

problems in other countries World trade falls

Confronting the Crisis Britain--Preserves democracy by avoiding political

extremes France—more self-sufficient than others & formed the

Popular Front to preserve democracy Denmark, Sweden, Norway—Socialist govt taxed the people

to help the community & it worked U.S.

Franklin D. Roosevelt—President during Depression & WWII

New Deal—FDRs program of gov’t reform to improve economy—Public Works, welfare, banking regulations

Smoot-Hawley Tariff Act (1930)—heavy taxes on goods imported into US to encourage buying American goods

Try to read the signs!

People standing outside the bank in Berlin trying to get their money!