Post on 13-Dec-2015
Anticipatory Set
• Describe the following questions with your neighbor
1. What is something that you or someone you know collects? (stamps, baseball cards, etc..)
2. What makes those items valuable?3. Could the same be applied to money?4. What happens if there is too much money
printed?
InflationGermany has huge war expenses
Gov’t spends more than it takes in
Ger prints more money
Value of money goes down
Prices go up
Gov’t prints more money
Cycle continues
Economy is in danger of collapsing
• Postwar Europe– New democracies did not last
• No experience with democracy• Coalition gov’t: different parties did not
always agree
– Weimar Republic has trouble• Ger ppl unhappy with the Treaty of
Versailles• Inflation is stopped by Dawes Plan
– US banks loaned GER $200 mil– Stabilizes Ger economy
Section 2A Worldwide Depression
Coalition gov’t: temporary alliance of several parties
Party: group of people with same political ideas Inflation: value of money goes down & price of goods goes up
Stabilize: to make stable, not shaky
• Great Depression– Caused by Stock Market Crash
• Stocks were sold for more than they were worth
– US economy falls & spreads to world• Soaring stock prices• Uneven distribution of wealth• Surplus of agricultural products• Banks and investors took their $ back from
Europe
– Roosevelt’s New Deal fights Depression• Large public works projects helped to
provide jobs
Stocks: ownership of a company
Distribution of wealth: how wealth is spread between rich and poor Surplus: extra
Public works projects: jobs created by the gov’t
A Worldwide Depression• In groups of 2-3 use book/notes to state REASONS for
the following developments1. In new postwar democracies, there were frequent
changes in gov’t2. In Ger, the Weimer Republic was weak from the start3. Postwar Ger suffered from severe economic inflation4. The US had a flawed economy5. October 29, 1929 the US stock market crashed6. A long depression followed the crash in the US7. Collapse of the US economy affected countries
worldwide.8. In Brit, the National Government rescued the economy9. In France, the Popular Front was formed as a coalition
gov’t10. Socialist gov’ts in Scandinavian countries dealt with
the economic crisis successfully
A Worldwide Depression1. In new postwar democracies, there were frequent
changes in gov’t• Had little experience with representative gov’t; having many
political parties made it difficult to reach agreements in gov’t
2. In Ger, the Weimer Republic was weak from the start• Lacked a strong democratic tradition; many political parties;
ppl blamed Weimer Republic for defeat & Treaty of Versailles
3. Postwar Ger suffered from severe economic inflation• Gov’t printed $ for war expenses & reparations; devalued
money
4. The US had a flawed economy• Uneven distribution of wealth, overproduction of goods and
agriculture lessened demand for consumer goods
5. October 29, 1929 the US stock market crashed• Investors believed stock prices would drop so they tried to sell
high-priced stocks they had bought on margin but no one wanted to buy
A Worldwide Depression6. A long depression followed the crash in the US
• Unemployment rates rose as production, prices, & wages fell; businesses & banks closed; savings and farms were lost
7. Collapse of the US economy affected countries worldwide.• Countries had war debts and depended on US for loans and
investments; worried US banks would demand loan repayments; US investors pulled their $ out of Europe; US market for imported goods fell; high tariffs decreased world trade and market demand
8. In Brit, the National Government rescued the economy• High protective tariffs, increased taxes, regulated currency, lowered
interest rates to encourage industrial growth9. In France, the Popular Front was formed as a coalition gov’t
• Economic crisis in France led to political instability & leaders feared growth of antidemocratic forces
10. Socialist gov’ts in Scandinavian countries dealt with the economic crisis successfully
• Tradition of cooperative community action & gov’t sponsored public works programs kept ppl employed and producing; gave $ to those who needed it
Political Cartoon• Symbolism
– Cartoonists use simple objects, or symbols, to stand for larger concepts or ideas
• Exaggeration– Sometimes cartoonists overdo, or exaggerate, the physical characteristics
of people or things in order to make a point
• Labeling– Cartoonists often label objects or people to make it clear exactly what
they stand for.
• Analogy– An analogy is a comparison between two unlike things that share some
characteristics. By comparing a complex issue or situation with a more familiar one, cartoonists can help their readers see it in a different
• Irony – Irony is the difference between the ways things are and the way things
should be, or the way things are expected to be. Cartoonists often use irony to express their opinion on an issue.
Worldwide Depression Political Cartoon
• Draw a political cartoon based on the Worldwide Depression.
• It should include a country besides the US and cause and/or effect of Worldwide Depression
• Be sure that your political cartoon includes:– Symbolism– Exaggeration– Labeling– Analogy– Irony
• Share your cartoon with your classmates and see if they can guess what it is about.