Post on 03-May-2018
The Great
Depression
After World War I,
the United States
distance themselves
from European
problems.
Isolationism
Millions of
immigrants
came to the
U.S. to flee
the
corruption,
injustice,
misery of
Europe
Keep it
over there!
Wilson does
not get re-
elected. The
US Senate
fails to ratify
the League
of Nations.
The Roaring 20’s!!!
The US
economy is very
strong and
people are
gaining wealth.
People are
playing the stock
market.
The bubble bursts!
October 24, 1929, Black Thursday, stock
values fall. People panic and sell. This is the
stock market crash. In one day, millions of
Americans go into debt.
Causes of
the Great
Depression
1. The unequal distribution
between rich and poor.
Population Wealth
5% 65%
5% of the
population
owns 65% of
wealth!
2. Overproduction of goods and
services.
The industry can not sell
because the markets are
saturated
3. Debt!!! People buying on credit.
The banks are asking to be
repaid!! Banks go bankrupt…
4. Land overuse
and drought.
American Midwest suffered from severe drought
and grasshopper infestation..
Years of drought ruined millions of
farmers who move to cities.
Tariffs
5.International Tariffs- Countries raised
tariffs on imports in order to protect their
own economies. This lead to a reduction
in trade amongst countries and hurt world
economies.
6.Inaction of governments
Only socialists
intervene in the
economy.
I am a
capitalist. I
believe in the
free market!
Extreme
capitalism
flops like a
house of
cards.
Results of
the Great
Depression
1.Thousands of
businesses go
bankrupt
2.Millions of employees
are laid off and become
unemployed
3.Employment
insurance is
nonexistent
4.Consumption
falls
Farmers are not
selling.
Nobody has money to
buy goods.
In 1932, 15 000 000 people, 25% of the
population, are unemployed!
In 1933,
Democrat
Franklin
Delano
Roosvelt
is elected.
The only thing we have
to fear is fear itself!
Extreme capitalism is no longer
working.
Roosevelt adopts
Keynesian
Economics
Government must
intervene in the
economy to keep it
working properly
Roosevelt announced the New
Deal, a new role for
government
.
1.
Social
Welfare
2. Agriculture aid
3.
Help with
Public
Services
4.
Aid for Housing
5.
Help for Industry
What impact did the
depression have on the
rise of this leader ?
Fascism promotes national and racial
superiority and a centralized, autocratic
government headed by a dictator.
Characteristics of Fascism:
1. Extreme Nationalism:
•Fascist leaders demand unquestioned loyalty
and service to the nation-state.
•A strong state, they argue, has every right to
overcome a weaker state.
•Racial purity – multiculturalism & intermarriage
were seen as ways to weaken the nation.
Races and cultures were separated.
2. Racial purity:
•Similar to extreme nationalism
•Belief that inter-marriage, multiculturalism
weaken and corrupt the state
•Often pass laws that promote separation of
races and cultures.
•In extreme situations open discrimination and
racism become state policy
3. Military Strength, Violence and War:
•Fascism emphasized militarism.
•Fascists believed aggression was strength,
while the desire for peace showed weakness.
•The military had to be strong, sizable, and
well trained.
•Fascists used violence to intimidate and
subdue political opponents
•Fascists felt war was inevitable, even
necessary if they were to achieve greatness.
4. Devotion to the leader:
•Fascist parties promote the cult of the
leader and absolute obedience.
•They condemn democracy because they
believe rival political parties can destroy
the unity of the state.
•They swear loyalty to one person who
becomes the voice of the nation and
represents the entire power of the nation.
•No dissent is tolerated.
5. Use of Scapegoats:
•People and groups are unjustly blamed for
the nation’s problems.
•Mussolini blamed democrats, unions and
socialists
•Hitler blamed communists, Weimar
politicians and Jews.
•This strategy resulted in the deaths of
millions