Great Depression


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Great Depression

  1. 1. The Great Depression By: Tom Answeeney Amber Ferger Mike Gaul and Mike Voss
  2. 2. Our Task <ul><li>Describe the cause and effect of the Great Worldwide Depression. What would have happened to people like Hitler if it never occurred? </li></ul>
  3. 3. What was the Great Depression? depression : the state of being sad and gloomy; dejected; downcast <ul><li>1929-1930 </li></ul><ul><li>Economic slump in North America, EUROPE , and other countries </li></ul><ul><li>Longest and most severe depression </li></ul>
  4. 4. Causes <ul><li>World War One </li></ul><ul><li>The Stock Market Crash </li></ul>
  5. 5. World War One ~Long difficult war ~ Nations borrowed money from the United States ~DEBT General Cause
  6. 6. <ul><li>Capital: the wealth, whether in money or property, owned or employed in business by an individual, firm, corporation (simply put: money earned) </li></ul><ul><li>Stock: a share of a company (money raised by a company by selling shares of the company) </li></ul>Key Words
  7. 7. <ul><li>One of the Main Causes * </li></ul><ul><li>Stocks rose </li></ul><ul><li>Borrow money </li></ul><ul><li>1929: value of a stock went way down </li></ul><ul><li>People became poor and economy suffered </li></ul>What exactly was the stock market crash? Stocks Stocks “ Black Friday”
  8. 8. <ul><li>Europeans exported goods to America </li></ul><ul><li>Stock Market Crash= not enough money for European imports </li></ul><ul><li>Europeans suffered </li></ul>How did that effect Europe? General Cause
  9. 9. Overall Effects <ul><li>Unemployment </li></ul><ul><li>Homelessness </li></ul><ul><li>Poverty </li></ul><ul><li>Decline in products </li></ul><ul><li>Collapsed economies </li></ul>
  10. 10. Specific Places England Germany France Italy Sweden
  11. 11. GERMANY
  12. 12. WWI and GERMANY <ul><li>Spent a ton of money on the war </li></ul><ul><li>Treaty of Versailles (article 231) </li></ul><ul><li>~Blamed Germany for the war </li></ul><ul><li>~Made them pay for it ---- debt (decrease in markets) </li></ul>Background
  13. 13. <ul><li>If Germany was in debt where did they get the money to pay for the war? </li></ul><ul><li>~ DAWES PLAN </li></ul>Dawes Plan United States Germany France and Britain $ $ $ Background
  14. 14. Germany and the Depression <ul><li>Most affected by the Great Depression </li></ul><ul><li>Germany relied on US for the money </li></ul><ul><li>When the American economy crashed, Germany no longer had money to give to France and Britain </li></ul>
  15. 15. <ul><li>Cut public services to preserve money </li></ul><ul><li>Unemployment </li></ul><ul><li>Declining Productivity </li></ul><ul><li>Business failures </li></ul><ul><li>Decreased Public </li></ul><ul><li>spending </li></ul><ul><li>1931: German banks </li></ul><ul><li>collapsed </li></ul>What happened in Germany?
  16. 16. <ul><li>Of course! To name a few… </li></ul><ul><li>Decline in economic strength as well as in national pride </li></ul><ul><li>Homelessness and inflation </li></ul><ul><li>The value of German currency declined drastically </li></ul><ul><li>Leads to Holocaust </li></ul>Were there any long term effects?
  17. 17. ENGLAND
  18. 18. <ul><li>DEBT </li></ul><ul><li>Foreign investment declined </li></ul><ul><li>English banks declined—US lent money now </li></ul><ul><li>Manufacturing suffered ---loss of colonial markets </li></ul>WWI AND ENGLAND
  19. 19. The Gold Standard <ul><li>Made the pound convertible to its value in gold </li></ul><ul><li>British exports = more expensive </li></ul><ul><li>Economic recovery slowed. </li></ul><ul><li>Export industries tried to cut costs of products by lowering workers' wages </li></ul>Background
  20. 20. <ul><li>Unemployment </li></ul><ul><li>Demand for British products collapsed </li></ul><ul><li>Exports fallen 50% </li></ul><ul><li>“ National Government” </li></ul><ul><li>Raised taxes </li></ul><ul><li>Wage cuts </li></ul><ul><li>Poverty </li></ul>What happened in England?
  21. 21. FRANCE
  22. 22. <ul><li>Debt </li></ul><ul><li>Postwar reconstruction </li></ul><ul><li>Some “pluses”: </li></ul><ul><li>~acquired more machinery </li></ul><ul><li>that was more advanced </li></ul><ul><li>(competitive advantage) </li></ul>WWI and France Background
  23. 23. <ul><li>Production decreases </li></ul><ul><li>UNEMPLOYMENT! </li></ul><ul><li>Short-lived governments </li></ul><ul><li>1934: attempted overthrow of government </li></ul>EFFECTS
  24. 24. SWEDEN
  25. 25. Some Causes <ul><li>Lack of demand for goods </li></ul><ul><li>Political unrest   </li></ul><ul><li>Less spending </li></ul><ul><li>Fall in wages  </li></ul><ul><li>Labor issues </li></ul>
  26. 26. <ul><li>Conservative government lost power </li></ul><ul><li>Government was taken over by the Social Democrats. </li></ul><ul><li>Reduced industrial production </li></ul><ul><li>Rise in unemployment </li></ul>Effects
  27. 27. What would have happened to people like Hitler if the Depression never took place?
  28. 28. THE END