WWI Effects Nations Economies and Governments. Mr. Deger
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1 WWI Effects Nations Economies and Governments Mr. Deger
2 Buh-bye Absolute Monarchs Russia: Provisional Government Germany/Austria: new democratic governments after strong tradition of absolute rule France/Italy: too many political parties Coalition government
3 Weimar Republic So weak Why? Germany lacked strong democratic tradition Germany had too many political parties Weimar government blamed for WWI (sign Treaty of Versailles)
4 Inflation Hits Germany Hard European nations (France) want reparations from Germany. Germany cannot pay, so it decides to keep printing more money Inflation
5 Hyperinflation Price of a loaf of bread in Germany 1918: less than 1 mark 1922: more than 160 marks 1923: roughly 200 billion marks
6 Dawes Plan (1924) Helped slow German inflation $200 million loan from US banks Sets a realistic schedule for Germany to pay reparations
7 Stresemann and Briand Gustav Stresemann (Germany) and Aristide Briand (France) tried to improve relations between their countries Sign a treaty to never make war Respect existing national borders Germany admitted to the League of Nations
8 Kellogg-Briand Peace Pact Nations will renounce war as an instrument of national policy Why do nations sign this? Very weak Why?
9 A Flawed US Economy Most nations depended on the prosperity of the United States in the late 1920 s In 1929, everything will collapse with the Stock Market Crash in the US
10 US Economic Flaws Uneven distribution of wealth Top 5% of the pop. earned A LOT (33% of all income in 1929) Many Americans were buying less 60% of US families earned less than $2,000 a year Could not buy goods being produced
11 US Economic Flaws (continued) Overproduction by business and agriculture With technological advancements, there was a worldwide surplus of food (prices & profits decrease) Farmers could not pay off bank loans Factories unable to sell all their goods, store owners cut back their orders Factories make cuts in production and lay off workers
12 The Stock Market Crashes New York City s Wall Street was the financial capital of the world in Stock prices soared in the booming US economy following WWI Many people began to buy stock with the hopes of gaining profit (buying on margin) Investors began to sell stocks to lower the prices Started a trend of everyone selling and nobody buying stocks Stock Market crashes on Tuesday, October 29, 1929.
13 Great Depression By 1932, factory production had been cut in half Thousands of businesses fail and banks closed Around 9 million people lost money in their savings accounts they had with banks Many farmers lose land By 1933, 25% of all Americans had no jobs Unemployment rate today (6.7%)
14 Global Depression Depression in the US results in economic collapse worldwide. WHY??? Congress places high tariffs on imports to keep US dollars in the United States (does not work) Sets off a chain reaction of other nations imposing high tariffs World Trade dropped by 65% Everyone is affected, especially Germany & Austria
15
16 Images from the Great Depression Millions lost their jobs and depended on charity to survive
17 Solutions to the Economic Crisis Britain: National Government (multiparty coalition) Preserves democracy, avoids political extremes Passed high protective tariffs, inc. taxes, regulated the currency, lowered interest rates Unemployment cut in half by 1937, production rebounds Slow but steady recovery
18 France Solutions to Economic Crisis (continued) France is rather self-sufficient Unstable coalition governments Popular Front (moderates, Socialists, Communists) Reforms are passed, yet unemployment soars Democracy is preserved
19 Solutions to Economic Crisis (continued) Scandinavian Countries (Denmark, Sweden, Norway) Recovery programs based on cooperative community action Hmmm.What does this sound like? Public works projects boost employment and production Social welfare is key Democracy remains intact!
20 US Recovery President Franklin Delano Roosevelt launches the New Deal Large public works projects help provide jobs Gov t. agencies give financial aid to businesses and farms Believed gov t. spending would create jobs and start a recovery Reform/regulate the stock market and banking system Reforms the American economic system democracy preserved!
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