The Great Depression 1929 - 1938

Post WWI Europe

• The treaty of Versailles created new boundaries, new nations and bitter feelings

• Under the treaty Germany was forced to pay 132 billion marks or $33 billion dollars

• By 1922 Germany was unable to pay

• As a result France sent troops to occupy the Ruhr Valley

Problems in Germany

• The Weimar Republic - The new democratic German government formed at the end of WWI

• The Weimar republic printed more money , which caused extreme inflation

• This made the German Mark worthless Nov. 1923 it took 42 trillion marks to 1 $

Significance of Germany’s problems

• One of the world’s leading economies collapsed causing a ripple effect to other countries– Ex: Germans bought less American goods causing

American companies to suffer

Temporary solution

• The Dawes Plan – Reduced reparations and coordinated Germany’s yearly payment with its ability to pay

• The U.S. loaned 200 million to Germany

• Named after U.S. banker Charles Dawes

• A period of prosperity followed until 1929 for most of the world

What Caused the Depression?

1. The Stock Market Crash

• Black Thursday October 1929 - 16 million shares were sold causing a panic and therefore a total collapse of the stock market

• Over 30 billion was lost• Banks went bankrupt (buying on margin)• Some people lost everything they had

worked their whole life for. Some even committed suicide.

Why did the Stock Market Crash?

• Stocks were extremely over priced

• Buying on Margin – Borrowing money from banks to pay for stocks

• Speculation – engaging in a risky business venture in order to make a quick or sizable profit

2. International Economic problems caused by W W I.

• Germany’s economy was in Ruins.

• This had an effect on the rest of the world as well as Germany because of the lack of trade.

3. Banking Problems

• Bank Runs – After the Stock Market Crash Many people rushed to banks to get their savings. Banks didn’t have the money available because it was tied up into investments. So Banks has to close their doors.

• People lost faith in U.S. Banks.

How did the Depression affect the U.S.?

• Unemployment– 25- 30% rate

• Homelessness– Hooverville’s, Shantytowns.

Many people lost their homes and were forced to live in shacks. People called these Hooverville’s b/c they blamed President Hoover for the Depression.

• Bread Lines and Soup Kitchens– So many people were in

poverty that there were always long lines for the free food some shelters would give away.

• The Dust Bowl – A severe drought in the mid-west caused farm land to dry up and farm products to decrease

• Hopelessness• Fear• Starvation

Great Depression images

Impact on the U.S.

• The U.S. was affected more than any other nation

• Production dropped more than 50 %

• By 1932 12 million were unemployed

• The Depression was blamed on Republican president Herbert Hoover

• In 1932 Democrat Franklin D. Roosevelt wins the presidency

F.D.R.

• Roosevelt was paralyzed (Polio) and a wheel chair during his 13 years as the President

• Before becoming president he had served as the governor of New York and Secretary of the Navy

The New Deal

• The New Deal – Roosevelt’s economic plan calling for increased government spending and programs to solve the Great Depression– Ex: WPA, CCC, NRA,

NIRA, TVA• *Fireside chats – Roosevelt

would address the public nightly via the Radio.

How did the Depression affect the Rest of the World?

• While the U.S. was solving its problems within the framework of democracy, the rest of the world was turning to other forms of government.

• By 1939 there was only 2 European countries that were democratic. – Socialism – government owns the major factors of

production… There is very little free enterprise– Fascism – a system of government that glorifies the

state by emphasizing a strong government led by a dictator

– Totalitarianism – a government that seeks to control the political, economic, social, intellectual and cultural aspects of its citizens lives

Mussolini

• Benito Mussolini started the first fascist movement in Europe in the 1920’s

• By 1922 Mussolini marched on Rome and King Victor Emmanuel III named Mussolini the Prime Minister

• Mussolini turned the government into a fascist dictatorship, outlawed all other political parties and created a secret police

Stalin

• Joseph Stalin served the Communist government of the U.S.S.R. as secretary general.

• When Lenin died in 1924, Stalin quickly gained control of the country by removing (killing or exiling) his political rivals.*The Great Purge*

Remaking the U.S.S.R.

• Five year plan – Stalin’s economic plan to transform Russia from an agricultural to an industrial country

• So he increased the production of Oil and Steel – two resources vital to building a strong military and industrial base

Stalin’s legacy

• He was responsible for the deaths of nearly 30 million Soviets, making him one of the most brutal and ruthless dictators in World History.

Adolf Hitler• Background Info

– Born in Austria in 1889– Dad died in 1903, Mom

in 1907– He was an aspiring

artist. Went to a prestigious art school

• WWI Soldier– Was an odd, unsociable

soldier – Injured twice during the

war– Awarded equiv. Of

Germany’s Medal of Honor (Iron Cross)

Hitler’s rise to power

• After the war– After the war Hitler joined a

political group, Nationalist Socialists (Nazi)

– Hitler soon rose to the top of the party, mainly b/c of his ability to inspire a crowd.

– Beer Hall Putsch• Hitler and followers tried to

forcefully overthrow the government

• He was unsuccessful, caught and thrown in jail

• Only served 6 mo. in Jail

Mein Kampf

– While in jail Hitler wrote a book, Mein Kampf, or my struggle

– It was somewhat of an autobiography. – He also outlined some important philosophies– 4 major points

• Third Reich – Restore German pride and glory • Lebensraum –“Living Space” –Germany needed to take

back lost land in WWI and expand into new land.• Jews were the enemy. responsible for all major evils.

• Aryan Race – The master race… Impose superior culture

on other peoples.. Remain pure by eliminating Jews

Hitler becomes Chancellor• After Hitler was released from

jail, he set about to obtain power the legal way, to be elected.

• The Nazi party was accepted by a lot of the population because of its glorification of Germany, the unpopular Weimar government and economic hard times in Germany

• In the 1932 elections the Nazi’s won the majority of Reichstag (Germany’s legislative body) seats

• President Hindenburg then named Hitler Chancellor

Nazi Persecution of Jews

• Nuremburg Laws – racial laws designed to exclude Jews from German society – Jews could not be citizens – Made marriages between Jews and Germans illegal– Jews had to wear yellow stars of David to identify

themselves

• Kristallnact- The beginning of violence against Jews– Jewish homes, businesses, and tabernacles were

damaged or destroyed