The great depression2


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The great depression2

  1. 1. The Great Depression (1929-1939)
  2. 2. What was the Great Depression? <ul><li>The Great Depression: a period of very low economic activity and high unemployment that spread throughout the world during the 1930s </li></ul>
  3. 3. Economic Boom in the United States <ul><li>The Roaring 20’s </li></ul><ul><ul><li>American factories produced most of the world’s manufactured goods </li></ul></ul><ul><ul><li>American workers made more money than workers in other countries </li></ul></ul><ul><ul><li>Banks in the U.S. loaned other countries large amounts of money </li></ul></ul>
  4. 4. Economic Struggles in Europe <ul><li>Most nations were deep in debt after World War I </li></ul><ul><li>Many countries printed too much money and experienced inflation (money loses value and prices go up) </li></ul><ul><li>Many European nations relied too much on the U.S. economy </li></ul>
  5. 5. Causes of the Great Depression <ul><li>Too much confidence in the economy </li></ul><ul><ul><li>Americans borrowed and spent too much </li></ul></ul><ul><ul><li>People made careless investments </li></ul></ul><ul><ul><li>Factories produced more goods than they could sell </li></ul></ul>
  6. 6. The Stock Market Crash of 1929 <ul><li>The economy slowed down </li></ul><ul><ul><li>Stock values began to fall </li></ul></ul><ul><ul><li>Investors panicked and too </li></ul></ul><ul><ul><li>many people wanted to sell </li></ul></ul><ul><ul><li>their stocks </li></ul></ul><ul><li>Stockbrokers demanded </li></ul><ul><li> that borrowers pay off loans </li></ul><ul><ul><li>People withdrew money from banks to pay off loans </li></ul></ul><ul><ul><li>Many banks did not have enough money and had to close </li></ul></ul><ul><li>Prices dropped further </li></ul><ul><ul><li>On October 29, 1929, Black Tuesday , values of stocks “crashed” to record lows </li></ul></ul>
  7. 7. Effects of the Great Depression <ul><li>Many banks and factories closed </li></ul><ul><li>People lost faith in the economy </li></ul><ul><ul><li>People bought less and invested less </li></ul></ul><ul><li>Many people became homeless </li></ul><ul><li>Unemployment was at an all time high </li></ul><ul><ul><ul><li>1/4 Americans and British jobless </li></ul></ul></ul><ul><ul><ul><li>2/5 Germans jobless </li></ul></ul></ul>
  8. 8. <ul><li>Different Responses to the Great Depression </li></ul>
  9. 9. The United States <ul><li>Kept its democratic form of government </li></ul><ul><ul><li>Voters gave government more power to deal with depression </li></ul></ul><ul><li>The New Deal: set of programs started by President Franklin D. Roosevelt that helped bring the U.S. out of the Great Depression </li></ul><ul><ul><li>The Social Security Act of 1935 </li></ul></ul><ul><ul><ul><li>Benefits for retired, disabled, and unemployed </li></ul></ul></ul><ul><ul><li>Public building projects </li></ul></ul><ul><ul><ul><li>Created new jobs </li></ul></ul></ul><ul><ul><li>More government involvement in economy </li></ul></ul><ul><ul><ul><li>Rules and regulations for businesses </li></ul></ul></ul><ul><ul><ul><li>Assistance for farmers </li></ul></ul></ul><ul><ul><ul><li>Higher taxes to pay for programs </li></ul></ul></ul>
  10. 10. Germany <ul><li>After WWI, Germany set up a democratic government </li></ul><ul><ul><li>New government failed to solve economic problems </li></ul></ul><ul><ul><li>Germans lost faith in democracy </li></ul></ul><ul><li>During the Great Depression, Germans wanted a strong leader to help with their economic problems </li></ul><ul><ul><li>Adolf Hitler: leader of the Nazi Party and dictator of Germany from 1933-1945 </li></ul></ul><ul><ul><ul><li>His ideas inspired German people who were suffering under the Great Depression and the Treaty of Versailles </li></ul></ul></ul><ul><ul><ul><li>Nazism: the political beliefs of the Nazi (National Socialist German Workers’) Party </li></ul></ul></ul><ul><ul><ul><ul><li>Promised to build a more powerful Germany </li></ul></ul></ul></ul><ul><ul><ul><ul><li>Called for a powerful leader (dictator) to get things done quickly </li></ul></ul></ul></ul><ul><ul><ul><ul><li>Blamed Jewish people for Germany’s problems </li></ul></ul></ul></ul><ul><ul><ul><li>His harsh rule brought Germany out of the depression </li></ul></ul></ul>
  11. 11. Great Britain <ul><li>Kept its democratic form of government </li></ul><ul><ul><li>Voters elected a new political party to help the economy </li></ul></ul><ul><li>economic retrenchment: cutting back on </li></ul><ul><li>other government programs and focusing </li></ul><ul><li>on economic improvement </li></ul><ul><ul><li>More government involvement in the economy </li></ul></ul><ul><ul><ul><li>Raised tariffs to protect British businesses </li></ul></ul></ul><ul><ul><ul><li>Cut back money supply to limit inflation </li></ul></ul></ul><ul><ul><ul><li>Lowered interest rates on loans to encourage spending </li></ul></ul></ul><ul><ul><li>Balanced the budget (got the government out of debt) </li></ul></ul><ul><ul><ul><li>Raised taxes and controlled government spending </li></ul></ul></ul><ul><ul><ul><ul><li>Cut military spending – saved money but weakened defense ability </li></ul></ul></ul></ul>
  12. 12. The End <ul><li>Special thanks to: </li></ul><ul><ul><li>Google Images </li></ul></ul><ul><ul><li>ClipArt </li></ul></ul><ul><ul><li>Ben Bindewald </li></ul></ul>