Great depression on a world scale


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  • Based on the quarters of the year and when the countries started the depressions
  • Great depression on a world scale

    1. 1. Futile Search for Stability
    2. 2.  After WWI an uneasy peace was created using new boundaries and new states • Unfortunately many were unhappy  Border disputes  Treaty of Versailles
    3. 3.  TheLeague of Nations was supposed to help maintain the peace • Not effective • The US didn’t join the League of Nations  Didn’t want to be involved in European affairs  Henry Cabot Lodge was concerned at getting involved in more world conflicts • Weren’t able to use force to uphold the treaties and stop aggression
    4. 4.  strict enforcement of the Treaty of Versailles • Reparations from Germany  132 billion German marks were owed ($33 billion US dollars)  Made their first payment in 1921 • In 1922 Germany announced it was unable to pay and France sent troops into the Ruhr Valley  Germany’s chief industrial and mining valley  France collected reparations by operating the mines and factories
    5. 5.  The Dawes Plan • A US plan coordinating German payments to help them pay • $200 million loan which opened the door to heavy American investment in Europe • A brief period of prosperity followed in 1924-1929
    6. 6.  Guaranteed Germany’s new western borders with France and Belgium • Viewed as a beginning of peace • Germany joined the League of Nations in 1926 Kellogg-Briand Pact • The nations pledged to “renounce war as an instrument of national policy” • Nothing was said as to what would happen if anyone violated the pact
    7. 7. A depression is a period of low economic activity and rising unemployment Causes • Series of economic downturns by individual nations in the late 1920’s • International financial crisis involving the U.S. stock market
    8. 8.  United States 1929:3  Sweden 1930:2 1932:3 1933:2  Denmark 1930:4 1933:2 Great Britain 1930:1  Poland 1929:1 1933:2 1932:4  Argentina 1929:2 Germany 1928:1 1932:3 1932:1 France 1930:2 1932:3  Brazil 1928:3 1931:4 Canada 1929:2 1933:2  Japan 1930:1 1932:3 Switzerland 1929:4  India 1929:4 1931:4 1933:1  South Africa 1930:1 Czechoslovakia 1929:4 1933:1 1933:2 Italy 1929:3 1933:1 Belgium 1929:3 1932:4 Netherlands 1929:4 1933:2
    9. 9.  Benefitted from the ruined industry in U.K., France and Germany  The United States became a big producer of the world’s industrial and military goods Although the Depression originated in the United States, it resulted in drastic declines in output, severe unemployment, and acute deflation in almost every country of the globe.
    10. 10.  New technology and consumer goods (phone, car, movies, radios) were exported Buying on credit, installment plans • Stock market stocks were traded on the margin (by only paying for a small part)
    11. 11.  October 29, 1929 the stock market lost more than 40% of its value and the economy came down with it  causes  1920’s prosperity was an illusionwages had not kept up  Americans bought on credit  Farmers had a hard time with low prices, they got very little for crops and had to borrow on credit  US had isolated itself from the rest of the world  High tariffs, worried on foreign competition  Prices for goods fell significantly thus cutting out profits
    12. 12.  The gold standard, which linked nearly all the countries of the world in a network of fixed currency exchange rates, played a key role in transmitting the American downturn to other countries.  Every country faced some decline in prices of goods between 1929-1933TorontoStockexchange
    13. 13. GERMANY FRANCE Weimar Republic  Became the strongest power on the European continent • No political true leaders  Devastated after the war  Paul Von Hindenburg was  Didn’t feel depression till 1932 elected but had been a  Political chaos general during WWI and did • Popular front was created in not fully endorse the republic 1936  Created the French New Deal • Inflation caused the people  Collective bargaining rights for on fixed incomes savings workers become worthless  40 hour workweek  2 week paid vacation • Unemployment  Minimum wage • Paved the way for the rise of  Failed to fix problems as by 1938 extremist parties French had no confidence in their political systems
    14. 14. HTTP://WWW.YOUTUBE.CO M/WATCH?FEATURE=PLAY ER_EMBEDDED&V=GTQNAGREAT BRITAIN RZMTOC Lost many markets to the  Keynes v. hayek US during the war • By 1921 2 million Britons were out of work Labour Party lost hold and the rise of the Conservative power claimed credit for bringing Britain out of the depression John Maynard Keynes ideas were largely ignored • Deficit spending
    15. 15.  At first the government did little to remedy the problem  No government programs to provide relief  Told people to “ride it out” The New Deal  FDR elected in 1932, passed a number of bills into law that regulated the banks and stock market  Guidelines for industry and agriculture  not entirely successful at ending the Great Depression  expanded role of government in the lives of the people