The Worldwide Depression was caused by a:C.R.A.S.H.

CCredit Expands

People bought goods they

couldn’t afford on credit

Buying something on credit is when you

loan or borrow money from somewhere

and agree to pay the money back over

time.

What does buying something on credit

mean?

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What would happen if people suddenly lost their jobs and couldn’t pay for what they had bought on credit?

RReparations

German industry collapsed after WWI

It is the production and sale of goods

Example:Textile Industry: makes and sales clothAutomobile Industry: makes and sales cars

What is industry?

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Why would reparations destroy the

German economy?

AAmerican industry

too dominant

Europe was too dependent on the US

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What will happen to Europe if the

American economy falls

apart?

SStock Market Crash (1929)

US stocks CRASHED Businesses and banks

closed

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What will happen to Europe now

that the US economy is

collapsing? Why?

HHigh Protective

Tariffs

Tariff=Tax on imported goods

It was hard for countries to trade with

each other

Impact of World Wide Depression

High unemployment in industrial countries

Bank failures and collapse of credit

Nazi Party growing importance in Germany

Nazi Party blame of Jews for economic collapse