Unit 12 lesson 2 (2)
- 1. A World Wide Depression
- 2. After WWI - America loaned money to war torn Europe to rebuild - America and Japan came out from the war better than others - Many new governments were created in Europe: * Russia became Communist (even though first intentions were to become democratic) * many other European nations established democracies * coalition governments, or governments of several allied political parties, formed in many places because there were too many political parties in one country to win majority - as a result, many coalition governments did not last long Click here to hear the sounds of Allied victory!
- 3. Germany After WWI - Germany's Weimar Republic was problematic because: * it was the first democratic government there * too many political parties * Germans blamed them for the defeat and consequences of the war * inflation and devaluation of German money occurred as a result of no taxation and printing money to pay for the war and war reparations - As a result, the Dawes Plan (developed by American banker Charles Dawes), controlled Germany's inflation by loaning them money and reworking their reparations schedule
- 4. Important Peace Treaties - Later peace treaties that included Germany and Russia seemed promising: * a treaty between France and Germany to never fight each other again * Kellogg-Briand Pact - almost global treaty to renounce war
- 5. Causes of the Great Depression in the United States The world's economic status depended on the United States, so when the U.S. entered the Depression, so did the rest of the world The U.S. Great Depression was caused by: * an uneven distribution of wealth * overproduction of business and agricultural goods and services * economic competition from/in overseas markets * Americans buying less due to lower wages and eventually loss of jobs * crash of the stock market due to buying stock on credit and the mass-selling of stocks
- 6. Effects of the Great Depression in the United States - Results of the Great Depression in America: * unemployment of millions * falling prices and wages * business and bank failures * loss of land by owners
- 7. Effects of the Global Great Depression - Effects of the Great Depression around the world: * withdrawal of American money by investors * reduction in buying/trading foreign goods and high tariffs on trade * unemployment of workers * falling prices and wages * failure of business and banks
- 8. Each country formed their own solutions The U.S., France, Britain, and Scandinavia, used political coalitions, taxation, public works projects, worker programs, tariffs, and law reforms which led to slow and difficult yet successful recoveries and the preservation of democracy - In Germany, Italy, and other Eastern European countries, the citizens were disillusioned by their democratic governments so they looked to other government systems for stability and pride (i.e. Adolf Hitler established Nazism in Germany and Benito Mussolini established Fascism in Italy) - Eventually, the differences between the different forms of government in Europe would lead to future problems, including WWII Solutions to the Great Depression in Europe