Between the Wars: Section One

Bell work Question: READ pg. 750

“A Story That Matters”Describe how some individuals dealt with the loss of their jobs and possessions.

4-5 complete sentences

Depression vs. Recession: Are we currently experiencing a

depression or a recession?

Year JanFeb

Mar

Apr

May

Jun JulAug

Sep

OctNov

Dec

2001 4.2 4.2 4.34.4

4.3 4.54.6

4.9 5.0 5.3 5.5 5.7

2002 5.7 5.7 5.75.9

5.8 5.85.8

5.7 5.7 5.7 5.9 6.0

2003 5.8 5.9 5.96.0

6.1 6.36.2

6.1 6.1 6.0 5.8 5.7

2004 5.7 5.6 5.85.6

5.6 5.65.5

5.4 5.4 5.5 5.4 5.4

2005 5.3 5.4 5.25.2

5.1 5.05.0

4.9 5.0 5.0 5.0 4.9

2006 4.7 4.8 4.74.7

4.6 4.64.7

4.7 4.5 4.4 4.5 4.4

2007 4.6 4.5 4.44.5

4.4 4.64.7

4.6 4.7 4.7 4.7 5.0

2008 5.0 4.8 5.14.9

5.4 5.65.8

6.1 6.2 6.6 6.8 7.3

2009 7.8 8.2 8.68.9

9.4 9.59.5

9.7 9.810.1

9.9 9.9

2010 9.7 9.7 9.79.8

9.6 9.59.5

9.6 9.6 9.7 9.8 9.4

Charts Below: Unemployment rates In the United StatesYear

Entire work force

Farm employees

1929 3.2 5.3

1930 8.9 14.2

1931 16.3 25.2

1932 24.1 36.6

1933 25.2 37.6

1934 22.0 32.6

1935 20.3 30.2

1936 17.0 25.4

1937 14.3 21.3

1938 19.1 27.9

A weak league of Nations Prez. Wilson realized

the Treaty of Versailles(V) could cause another conflict.

not effective in maintaining peace.

U.S. did not join the league.

U.S. senate did not ratify the Treaty of V.

Who are the characters? Who is the audience? What is the message

French Demands French demand strict

enforcement of the Treaty of V.

1921—Allied Reparations Commission determined that Germany owed 132 billion Marks($)

German GOV is unable to pay the next year.

France sent troops to occupy the Ruhr Valley.

Inflation in Germany German workers strike, GOV

pays them by printing more money.

1914---4.2 marks = 1 U.S.$ 1923---130 Billion marks = 1

U.S.$ 1924---4.2 trillion marks = 1

U.S.$

Dawes Plan- a new plan for reparation payments. Named for an American banker.

1. Reduced reparations2. $200 million loan

Treaty of Locarno

Guaranteed Germany’s new western borders w/ France and G.B.

Kellogg-Briand Pact-

“ to renounce war as an instrument of national policy”

Cause of the Great Depression

1. Uneven distribution of Income—low wages for middle class, low taxes for the rich.

2. Stock Market crash---buying stocks on margin.

3. over production of food & products.

4. Hawley-Smoot Tariff- raising tariff rate to the highest level in U.S. History. Loss of export sales

Pit Stop1.What are stocks?

2.How did many Americans buy stocks?

3.Define: margin call

The Stock Market Stock market- a system

for buying and selling shares of companies.

Margin- using loans to buy stocks.

Margin call- a demand for a loan to be repaid at once!

Speculators- individuals that made risky investments in the stock market.

The Stock Market Crash! %@#*

Black Tuesday- October 29 1929, stocks lose $10-$15 billion in value.

3,000 banks were forced to close because…

1. banks lent money to speculators.

2. banks invested their customers money in the stock market.

3. Bank runs-customers withdraw all of their money from the bank.

Pit Stop1.How many banks closed after the stock

market crash?

2.Name the 3 causes of these bank closings?