THE INTER- THE INTER-WAR YEARS

1. THE INTER-THE INTER-WAR YEARS

2. The US Economy in the 1920s • US was world’s economic leader after WWI • Supplied much of the world with food and supplies during and after the war • Brief recession after the war, but recovered quickly • Success reflected in the stock market • Value of stocks (shares in a company) rose over 400% • Many borrowed money to get in on the action driving prices higher

3. STOCK PRICES SOAR!!!

4. ‘The Roaring Twenties’The image 1920s America – “One long, crazy party, with jazz music playing on the radio, young fashionable women known as flappers wildly dancing the Charleston, large quantities of illegal alcohol being consumed, and everyone behaving in a scandalous manner.”

5. ‘The Roaring Twenties’The reality In the aftermath of the war people were determined to have fun. They had more money and more leisure time. Women were freer than ever The entertainment industry boomed. The 1920s were the golden age for Hollywood films. It was also the Jazz Age with its crazes for new music and dances.

6. Flappers

7. Music ‘The Jazz-Age’

8. Radios

9. Movies

10. Film Stars

11. Sport

12. The US Economy in the 1920s • Prosperity hid major problems • Most goods were bought on credit • An arrangement in which a purchaser borrows money from a bank or other lender and agrees to pay it back over time with interest • By 1929 consumer spending had slowed but production hadn’t creating a surplus of goods

13. The US Economy in the 1920s • Fearing the market would collapse investors began selling off their stocks in mass • October 29th, 1929: Black Tuesday • 16 million shares of stock sold with none bought • With nobody wanting to buy stocks prices quickly fell • Those who bought stock through loans owed money that they could not repay

14. The US Economy in the 1920s • To pay loses on stocks people rushed the banks to with draw money • Called a bank run • Banks didn’t have enough money on hand to give people so they closed • Some people never did get their money

16. The Depression Spreads Slowdown in industry led to job cuts which led to less spending which led to less industry which led to more job cuts US gov’t under Herbert Hoover believed that gov’t intervention should be minimal Voters responded by electingFranklin Roosevelt

17. The Depression Spreads • FDR gave the gov’t a large role in ending the Great Depression called the New Deal • Gov’t spending, not handouts, through gov’t funded employment • Regulations on the stock market and banks to prevent the crash from every happening again • The New Deals was based off the philosophies of English economist John Maynard Keynes • Econ. downturn can be prevented by gov’t spending • Creates deficit spending (spending > income)

19. Al Capone used the Depression to gain support from people by opening soup kitchens

20. The Worldwide Depression • Economic problems in Europe before the Depression hit • World relied on US industry • Europe’s economy hurt by WWI • Reparations made Germany in debt to the Allies to the point that Germany Marks were worthless • Allies paid debt to US with reparation money • US invested in Germany so they could pay reparations

22. German Marks($) were so worthless itwas better toburn them for than use themto buy fuel

23. The Worldwide Depression • Hawley-Smoot Tariff was a US attempt to save the US economy • High tariffs to encourage Americansto buy American-made goods • It backfired by shutting downinternational trade and makingthe Depression deepen & spread

24. The World Wide Depression • Many countries already politically unstable after WWI • The Depression resulted in social unrest and the formation of new, sometimes extreme, governments as people looked for a solution • Nazis under Adolf Hitler take power in Germany and blame Jews for the Depression • Mussolini used the Depression as an excuse to take absolute power in Italy

25. RISE OF THE DICTATORS!!!