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As you go through this PowerPoint, you will
read EVERYTHING, but only write the words in
red. When you finish, move on to #2 on your
instructions.
The Treaty of Versailles led to a crippling
depression in Germany. Many people
believe that the harshness of the treaty led
to the rise of the Nazi party and caused
World War II
Unit 9
UEQ: How and why did World War
II occur?

DEQ: How did the global
depression of the 1930s lead to the
rise of Nazism?
Great Depression
Unit 8, Day 1
CAUSES
A. German Reparations
1. Germany forced to pay after WWI
The Treaty of Versailles demanded that Germany pay
reparations equal to 5 BILLION US dollars! This increased
bitterness towards west Europe.
2. Economy destroyed but still pay
Due to German money losing value
(hyperinflation), by Nov 1923, a loaf of bread cost 3
million German marks.

Do I want
to buy
white or
wheat?
3. Forced to borrow $ from USA
After WWI, only one country was healthy and
strong  us. Like other Euro nations, Germany had
to come to us for help and they HATED it.
4. Germans get mad
Broke, hungry, bitter and hating GB, France and
USA.
B. Protective Tariffs
1. Tariffs = taxes
2. Makes foreign goods more expensive
3. Encouraged people to buy from their own country
Buying from your own country is the easiest way to keep
your nation’s economy healthy and strong. Tariffs like these
strangled world trade because everyone only bought locally
and not from overseas
C. Credit Expansion
1. Banks give out too many loans
2. People can’t pay back
3. Banks fail when market crashes
When the stock market
crashed, everyone freaked out and
tried to take out all of their money
from the banks at once. These “bank
runs” caused the banks to run out of
cash and close down. Since no one
has money, they can’t pay back loans
and stuff bought on credit. So then
businesses failed too.
D. US Economy
1. US produces too much stuff (overproduction)
2. Other countries can’t keep up
3. No one buys our stuff and we lose money
4. Stock Market Crash- October 29, 1929
IMPACTS
A. High Unemployment industrial nations
1. Businesses shut down
Because no one can pay debts or afford new
items
2. People lose jobs
No open businesses = no jobs
3. Debts become even worse
B. Bank Failure and collapse of credit
1. “Bank runs” cause chaos
2. People lose their savings
3. Banks close  No new credit or
investments
C. Collapse of prices in world trade
1. Companies have made too much stuff
2. Protective tariffs strangle trade
3. Prices fall very quickly (collapse)
D. Nazi Party
1. Germans are struggling with bad economy
and reparations
2. Turn to a new nationalist party (Nazis)
3. Nazis blame Jews for the economy
4. Power grows quickly in Germany
When you have finished
writing down notes, return to
instructions sheet and move
to direction #2.

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W2 unit 8 day 1 ppt WHII.11b

  • 1. Hello! As you go through this PowerPoint, you will read EVERYTHING, but only write the words in red. When you finish, move on to #2 on your instructions.
  • 2. The Treaty of Versailles led to a crippling depression in Germany. Many people believe that the harshness of the treaty led to the rise of the Nazi party and caused World War II
  • 3. Unit 9 UEQ: How and why did World War II occur? DEQ: How did the global depression of the 1930s lead to the rise of Nazism?
  • 6. A. German Reparations 1. Germany forced to pay after WWI The Treaty of Versailles demanded that Germany pay reparations equal to 5 BILLION US dollars! This increased bitterness towards west Europe. 2. Economy destroyed but still pay Due to German money losing value (hyperinflation), by Nov 1923, a loaf of bread cost 3 million German marks. Do I want to buy white or wheat?
  • 7. 3. Forced to borrow $ from USA After WWI, only one country was healthy and strong  us. Like other Euro nations, Germany had to come to us for help and they HATED it. 4. Germans get mad Broke, hungry, bitter and hating GB, France and USA.
  • 8. B. Protective Tariffs 1. Tariffs = taxes 2. Makes foreign goods more expensive 3. Encouraged people to buy from their own country Buying from your own country is the easiest way to keep your nation’s economy healthy and strong. Tariffs like these strangled world trade because everyone only bought locally and not from overseas
  • 9. C. Credit Expansion 1. Banks give out too many loans 2. People can’t pay back 3. Banks fail when market crashes When the stock market crashed, everyone freaked out and tried to take out all of their money from the banks at once. These “bank runs” caused the banks to run out of cash and close down. Since no one has money, they can’t pay back loans and stuff bought on credit. So then businesses failed too.
  • 10. D. US Economy 1. US produces too much stuff (overproduction) 2. Other countries can’t keep up 3. No one buys our stuff and we lose money 4. Stock Market Crash- October 29, 1929
  • 12. A. High Unemployment industrial nations 1. Businesses shut down Because no one can pay debts or afford new items 2. People lose jobs No open businesses = no jobs 3. Debts become even worse
  • 13. B. Bank Failure and collapse of credit 1. “Bank runs” cause chaos 2. People lose their savings 3. Banks close  No new credit or investments
  • 14. C. Collapse of prices in world trade 1. Companies have made too much stuff 2. Protective tariffs strangle trade 3. Prices fall very quickly (collapse)
  • 15. D. Nazi Party 1. Germans are struggling with bad economy and reparations 2. Turn to a new nationalist party (Nazis) 3. Nazis blame Jews for the economy 4. Power grows quickly in Germany
  • 16. When you have finished writing down notes, return to instructions sheet and move to direction #2.