The Great Deppression

Postwar Europe

Unstable new democracies

• Many countries had so many parties they couldn't decide on one 
• Coalition Government-temporary alliance of several parties
• It was hard to form strong leadership with coalition gov.
• Some willing to sacrifice democracy for strong authoritarian gov.

The WeiMAR republic

Inflation causes crisis in germany

• Instead of increasing taxes, Germany printed more money
• The mark soon lost its value and became worthless
• The cost of goods became so high people had wheelbarrows of cash
• In 1923, a loaf of bread cost 200 billion marks
• People started to question their new democratic government 

Attempts at economic stability

• The international committee helped save Germany's economy
• Charles Dawes gave a $200 million loan to stabilize Germany's economy
• By 1929, Germany was producing as much in their factories as before the war

Efforts at a lasting peace

• In 1925, Germany and France's foreign ministers met 
• They signed a treaty stating that they wouldn't go to war again
• Germany promised to respect the borders of France and Belgium
• Almost every country signed the Kellogg-Briand peace pact

Financial collapse

A Flawed u.s. economy

• Uneven distribution of wealth, overproduction, and people bought less
• Richest 5% received 33% of all personal income
• 60% of americans lived off less than $2000 a year
• Fewer people buying->reduced production->laid off workers->so on
• On going cycle of a downwards spiral in the economy 

The stock market crashes

• U.S. showed record high stock market prices; everyone started buying
• Thursday, October 24, 1929, the price of stocks began lowering 
• Everyone wanted to sell, but nobody wanted to buy
• October 29, known as Black Tuesday,  stock market prices plunged
• 16 million stocks sold, and the market collapsed 

The great depression

A global depression

• American banks wanted payment from overseas loans; withdrew from Europe
• High tariffs were put into place for U.S. and then other countries
• World trade dropped 65%, while unemployment rates soared

Effects throughout the world

• 1931, the largest bank in Austria failed
• Value of export goods in Asia cut in half between 1929 and 1931
• Less demand for Latin American products led to prices collapsing  

The world confronts the crisis

Britain takes steps to  improve its economy

• National Government- Britain's multiparty coalition government
• Passed high protection tariffs, increased taxes, and regulated currency  
• Lowered interest rates bought a slow but steady recovery
• 1927, unemployment was cut in half and production levels exceeded 1929's
• Britain was able to preserve Democracy

france respond to economic crisis

• By 1935, one million unemployed
• By 1933, five coalition governments formed and fell
• 1936, moderates, Socialists, and Communist formed a coalition governement
• The Popular Front passed reforms; price increases offset wage gains
• Through it all, France preserved their democratic government 

recovery in the united states

• 1932, Franklin D. Roosevelt was elected president 
• March 4, 1933, began the New Deal
• The New Deal was a program of government reforms 
• Provided jobs, financial help, welfare, relief programs
• Roosevelt's programed worked and restored the country's faith