The document summarizes how the Great Depression spread globally in the early 1930s. As unemployment rose in the US due to stock market crashes and bank failures, American consumers and businesses had less money to buy goods. This hurt companies' sales. Meanwhile, American banks and businesses started demanding repayment of loans from European countries like Germany, worsening their economic crises. The globalization of trade and finance then caused the worldwide depression, as poor nations also suffered from reduced lending and investment from Europe and America.

1. The Depression Continues

2. Wash, Rinse, Repeat
 Because the Stock
Market crashed,
companies laid people
off.
 This made the surplus
stock grow, because
less Americans could
buy companies’ items.
 More people then went
to the banks to withdraw
all their money.
 More layoffs

3. Runs on the bank
 When people ran to get
to their money out of a
bank, it was called a
“run on the bank.”
 Banks loan money out
using the money put in.
 When people took their
money out suddenly,
many banks had to
close completely.

4. Calling in the loan
 At the same time, in an attempt to recoup
the money they were losing, banks
required people to pay ALL the money
they were loaned or they would lose their
house/car/etc.

5. Continuing the Cycle
 Unemployment and
homelessness
continued to increase,
banks and businesses
closed, and the
economic depression in
the U.S. then intensified
the worldwide
depression.

6. A Change of Direction
 Remember the Depression began in Europe.
 Remember Europe owed America a great deal of
money for loans during and after World War I.
 Germany borrowed more money from the United
States to pay back reperations.

7. Taking these ideas global
 Similar to how banks
were treating
American consumers,
American banks and
businesses that
loaned Europe money
began demanding
their money back.
 Many countries in
Europe (Germany
especially) suffered
even more due to this.

8. The Third World
 Poor nations (Asia,
Africa, and South
America) are often
called the Third
World.
 Countries in the Third
World suffered
because European
and Americans
stopped loaning and
investing in them.

9. Worldwide Depression
 As these investments decreased, the economies
in nations of these other continents began to
suffer, and by the early 1930s the worldwide
depression had begun.