Download The Great Depression

The Great Depression:
Post WWI Economic Problems
Ms. Payne
September 21, 2011
The Great Depression:
Post WWI Economic Problems
SS6H7a
Describe major developments following WWI: the
Russian Revolution, the Treaty of Versailles, worldwide depression, and the rise of Nazism
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?
ISN: Cornell Notes
Worldwide Depression
Definitions:
Economic Depression:

period of low economic activity
when many people lose their jobs
Inflation:

period when money loses it value
and businesses raise prices
Stock Market Crash:

a sudden dramatic decline of stock
prices across a significant crosssection of a stock market, resulting
in a significant loss of paper wealth
Depression in Germany
Factors
 German Resentment
and Humiliation
The Great Depression:
Post WWI Economic Problems

Germany
◦ made the 1st of
reparation payments in
1921
◦ claimed they could not
afford to pay anymore
The Great Depression:
Post WWI Economic Problems
France’s Response
 Use German payments
to rebuild their own
economy.

Sent troops to take
German’s valuable
mines and factories
The Great Depression:
Post WWI Economic Problems
Germany’s Response
workers 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 bread

This 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:
Post WWI Economic Problems
Causes of the Great Depression
 Crash of the U.S. stock market
The Great Depression:
Post WWI Economic Problems
Causes of the Great Depression
 Overproduction
 Inability to pay back loans
◦ Unemployed
◦ Investors

Banks wanted loans paid back

Banks collapsed many people lost their entire
savings.
The Great Depression:
Post WWI Economic Problems

The 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 Rates
The Great Depression:
Post WWI Economic Problems
Impact
Rise of Nazism & Hitler
1931 German Financial Crisis
PBWorks

http://ss6paynelessons.pbworks.c
om/w/page/45461718/Worldwide
%20Depression
YouTube

http://youtu.be/IFSad6Mphoo
ISN: Cornell Notes
Worldwide Depression
Causes:
Long-Term

Huge debt resulting from WWI

European dependence on
American Loans

Widespread of credit

Overproduction of goods paired
with a decline in demand
ISN: Cornell Notes
Worldwide Depression
Causes:
Short-Term

Stock Market Crash 1929

Banks demand repayment of
loans

Americans can no longer give
loans to other countries

Businesses and factories fail

High protective tariffs
ISN: Cornell Notes
Worldwide Depression
Effects:
Short-term

Vast Unemployment and misery

Bank failures and collapse of
credit

Loss of faith in capitalism and
democracy

Authoritarian leaders gain
support
ISN: Cornell Notes
Worldwide Depression
Effects:
Long-term

Nazis take control of Germany

Scapegoats are blamed for
economy

Fascist leaders gain control of
Eastern Europe

World War II begins
ISN: Cornell Notes
Worldwide Depression
Summary: