The Great Depression

1. The Great Depression The World Confronts the Crisis

2. The Great Depression • Economic Downturn • GreatDepression—long business slump of 1930s • Marked by bank failures, loss of savings, unemployment • A Global Depression • American economic problems create problems in other countries • American investors withdrew in Europe • Placed high tariff on imported goods-> backfires why? • World trade falls sharply- 65% and unemployment rates skyrocket • Effects Throughout the World • Germany and Austria suffer greatly, why? Who are they borrowing money from? • Asia suffers- depend on selling exports overseas • Latin America suffers- demand for sugar, beef, and copper drops so does the price

3. The World Confronts the Crisis • Britain Takes Steps to Improve Its Economy • British voters elect coalition government, avoids political extremes • Passes high protective tariffs, increased taxes, regulates currency • Government brings about slow, steady economic recovery • By 1937 unemployment had been cut in half • Preserves democracy by avoiding political extremes • France Responds to Economic Crisis • France has more self-sufficient economy, heavily agricultural less dependent on foreign trade • Preserves democracy in spite of economic troubles • Socialist Governments Find Solutions • Public works programs help Scandinavian countries recover- DEMOCRACIES REMAIN INTACT • Sweden, Denmark, Norway govt. sponsored public works programs

4. Recovery in the United States • Recovery in the United States • FranklinD. Roosevelt—American president during Depression • FDR Inaugural Address • NewDeal—Roosevelt’s program of government reform to improve economy • Large amounts of money spent on welfare and relief programs