The Great Depression By: Tom Answeeney Amber Ferger Mike Gaul and Mike Voss
- Describe the cause and effect of the Great Worldwide Depression. What would have happened to people like Hitler if it never occurred?
What was the Great Depression? depression : the state of being sad and gloomy; dejected; downcast
- Economic slump in North America, EUROPE , and other countries
- Longest and most severe depression
World War One ~Long difficult war ~ Nations borrowed money from the United States ~DEBT General Cause
- Capital: the wealth, whether in money or property, owned or employed in business by an individual, firm, corporation (simply put: money earned)
- Stock: a share of a company (money raised by a company by selling shares of the company)
- 1929: value of a stock went way down
What exactly was the stock market crash? Stocks Stocks “ Black Friday”
- People became poor and economy suffered
- Europeans exported goods to America
How did that effect Europe? General Cause
- Stock Market Crash= not enough money for European imports
Specific Places England Germany France Italy Sweden
WWI and GERMANY
- Spent a ton of money on the war
- Treaty of Versailles (article 231)
- ~Blamed Germany for the war
- ~Made them pay for it ---- debt (decrease in markets)
Dawes Plan United States Germany France and Britain $ $ $ Background
- If Germany was in debt where did they get the money to pay for the war?
Germany and the Depression
- Most affected by the Great Depression
- Germany relied on US for the money
- When the American economy crashed, Germany no longer had money to give to France and Britain
What happened in Germany?
- Cut public services to preserve money
- Of course! To name a few…
- Decline in economic strength as well as in national pride
- Homelessness and inflation
Were there any long term effects?
- The value of German currency declined drastically
- Foreign investment declined
- English banks declined—US lent money now
WWI AND ENGLAND
- Manufacturing suffered ---loss of colonial markets
The Gold Standard
- Made the pound convertible to its value in gold
- British exports = more expensive
- Economic recovery slowed.
- Export industries tried to cut costs of products by lowering workers' wages
What happened in England?
- Demand for British products collapsed
WWI and France Background
- 1934: attempted overthrow of government
- Conservative government lost power
- Government was taken over by the Social Democrats.
- Reduced industrial production
What would have happened to people like Hitler if the Depression never took place?