A WORLDWIDE DEPRESSION

1. AWORLDWIDEDEPRESSION

2. 1. In new Postwar democracies, there were frequent changes in gov’t. • Little experience w/ democracies • Many political parties which made unity difficult

3. 2. In Germany, the Weimar Republic was weak from the start. • No strong democratic tradition • Many Germans blamed the Weimar Gov’t • Humiliated by Versailles

4. 3. Postwar Germany suffered from severe economic inflation. • German Gov’t printed money for war experiences & reparations.

5. 4. The United States had a flawed economy. • Uneven distribution of wealth • Declining demand for American goods

6. 5. On October 29, 1929, the U.S. stock market crashed. • Believing prices would drop, people tried to sell stocks. • No buyers

7. 6. A long depression followed the crash in the United States. • Unemployment rates rose as industrial production falls • Banks and Businesses fail

8. 7. Collapse of the U.S. economy affected countries worldwide. • Countries with war debt were dependent on American loans 7 investments • American money was pulled out of Europe

9. 8. In Britain, the National Gov’t rescued the economy. • Passed high protective tariffs • Increased taxes • Lowered interest rates to encourage growth

10. 9. In France, the Popular Front was formed as a coalition gov’t. • Economic crisis in France led to Political instability

11. 10. Socialist gov’ts in Scandinavian countries dealt with the economic crisis successfully. • Relied on existing tradition of cooperation • Gov’t sponsored public works