treaty of versailles and outlawing war overproduction ... · •treaty of versailles and outlawing...

• Treaty of Versailles and Outlawing War

• Overproduction, Loans, Stock Market and

Banking Institutions

• Dust Bowl in America

• FDR’s New Deal

– Big Question: Nazism in Germany, Fascism in Italy

got their nations out of the Great Depression much

faster than FDR’s New Deal in America? What

really got American out of the Great Depression if

not FDR’s New Deal?

A.

• 1. forced Germany to

accept total responsibility

for WWI.

• 2. Forced Germany to pay

the Allies 30 Billion dollars

in war reparations

• 3. Germany was forced to

give up land to France

• 4. Germany was forced to

greatly reduce the size of

its military

• 5. Germany was

embarrassed and angry!

• Many movements for peace

– a. :

Ineffective!

– b. outlawed

war: did not work

and collapse

The Skinny• 1. The world experienced a

beginning in 1929.

• 2. Enormous amount of poverty

• 3. Franklin Delano Roosevelt is elected president of the US in 1930s promising America a New Deal!

• *Big Thought: Compare and contrast the way nations are affected by the Great Depression> Analyze their different responses to the economic destitution.

– Last part leads to WWII; Germans and Italians vote away Enlightened rights in favor of immediate economic recovery…but at what cost?!

A. The GD represented the most influential postwar change

1. suggested that Europe’s economy was collapsing

2. worries about industrial capitalism

a. it had generated individualist materialism

What religions / ideologies throughout history have

shunned this? b. it had created enormous social inequalities

c. much anxiety was caused by this apparent instability

3. GD begins in 1929

a. contracting stock prices wiped out paper fortunes

b. many lost their life savings

c. world trade dropped by 62% within a few years; businesses contracted

B. Numerous causes contributed to the GD

1. American economy was in a boom during the 1920s

a. by the end of the decade, factories and farms produced more goods than could be

sold

b. Europe was impoverished by WWI and didn’t purchase many American products

c. Europe was recovering and produced more of its own goods

2. speculative stock market had driven stock prices up artificially high

How does a bank fail?

C. Worldwide empires made the GD a worldwide problem

1. countries or colonies dependent on the export of a few products were

hit hard

2. tensions in Latin America frequently resulted in military takeovers,

interventionist governments, import substitution industrialization,

authoritarian and populist politics

What products and associated region could be used for

evidence for the above notes?

The Dust Bowl, 1930 – 1936, was a period of severe dust storms that

greatly damaged the ecology and agriculture of the American and

Canadian prairies during the 1930s; severe drought and a failure to apply

dryland farming methods to prevent the aeolian processes caused the

phenomenon. -Wikipedia

D. The GD was a major challenge to governments

1. capitalists believed the economy would regulate itself

2. the Soviet Union’s economy had grown throughout the 1930s

3. in response, some states turned to “democratic socialism”; a greater

regulation of the economy and more unequal distribution of wealth

Which states in particular?

4. The “New Deal” (1933 – 1942) in the USA

a. FDR’s administration launched a complex series of reforms

b. influenced by British economist John Maynard Keynes

c. FDR’s public spending programs permanently challenged the

relationship between government, the private economy, and

individual citizens

If FDR’s New Deal didn’t save us Americans from the GD,

what did? (Hint? MIC)

d. did not work well

5. Nazi Germany and Japan coped the best with GD (*USSR)

How was the construction of the Hoover Dam tied to economic

recovery during FDR’s New Deal? How did it help?

Worldwide Economic Depression1. Long-Term Causes

– huge war debts

– American loans to Europe

– widespread use of credit

– overproduction of goods

2. Immediate Causes

– NYSE crash in 1929

– banks collapse

– countries fail to repay American

loans

– loss of American capital

3. Immediate Effects• vast unemployment and misery

• loss of faith in capitalism and

democracy

• authoritarian leaders emerge

4. Long-Term Effects• rise of fascism and Nazism

• people blame scapegoats

• WWII begins