The Great Depression

UnstablE New Democracies

• War saw the sudden rise of new democracies.
• Provisional government.
• Hoped to establish democratic rule.
• Coalition government, or temporary alliance.
• Many european nations had new democracies. 

The Weimar Republic

• Was Germany's new democratic government.
• Named after the city where the assembly took place.
• Was blamed for Germany's postwar humliation.
• Serious weakness from the start.

Inflation Crisis on Germany.

• Germany faced serious economic problems.
• Begun during World War 1.
• Germany had to pay the expenses of WW1.
• Germany printed lots of money.
• Money had continued to lose value.

A flawed U.S economy.

• Several weakness in U.S economy caused serious problems.
• Uneven distribution of wealth, overproduction, and less buying. 
• The richest 5% of Americans received 33% of all personal income.
• 60% of all American families got 2,000 or less a year.
• Many farmers could not pay bank loans. 

Stock Market crashes

• In 1929, NYC.s Wall St. was the financial capital of the world.
• Banks and companies lined the sidewalk.
• In September of 1929, began to think that stock prices were high.
• People sold their stocks. A record 16,000,000 stocks were sold.
• On Tuesday, October 25, the stock market had crashed. 

A Global DEpression

• The collapse of the American economy sent the world to shock.
• American bankers wanted immediate repay for their oversea loans. 
• The American market for European goods dropped sharply.
• Many countries that depended on the U.S to export goods also suffered.
• By 1933, about 1/4 of Americans had no job.

Effects throughout the world

• Due to war debts on American loans, Germany and Austria were hard hit.
• In 1931, Austria's largest bank failed.
• In Asia, both farmers and urbanworkers suffered as the value of exports.

Britain takes steps to improve it's economy.

• The depression hit Britain severly.
• British voters had voted for a multiparty coalition.
• National government.
• It lowered interest rates to encourage industrial growth. 
• Britain avoided political extreme and preserved democracy.

France responds to economic crisis

• Unlike Britain, France had a more self-sufficient economy
• In 1930, it was still heavily agricultural and less dependent on trade.
• By, 1935, 1,000,000 French workers were unemployed.
• In 1933, 5 coalition governments were formed, and all failed.
• The Popular Front, passed a series of reforms to help the workers.