The Great Depression Chapter 28 (2 of 4). WW1 Ends, But Financial Problems Begin.
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Transcript of The Great Depression Chapter 28 (2 of 4). WW1 Ends, But Financial Problems Begin.
The Great DepressionChapter 28 (2 of 4)
WW1 Ends, But Financial Problems Begin
Hyper-Inflation
• Major inflation (rise in prices, decrease in money value) occurred in Europe after WWI, especially in Germany
• Inflation began largely because more money was printed to cover reparation payments
• Soon an inflationary mentality set in. • Merchants would raise prices
automatically. • People would hoard goods, figuring
the price would go up, thus causing shortages.
September, 1922
September, 1923
November, 1923
163 marks 1.5 million marks
200 billion marks
Price of a loaf of bread in Germany
Britain relied on exports and was slow to recover due to new
competition
Farmer Problems
• Overproduction from World War I
• Result = Prices go down
• Many give up farming and move to urban centers
Colonies Suffering
• Relied on export crops, but prices down
• Less money to buy goods so Europe hurt too
Governments React – Protective Tariffs
Black Tuesday – October 29, 1929
U.S. Stock Market Crashed
Great Depression Begins
Banks Fail
Soviets Isolated From Depression
• State ran economy• Didn’t trade with others
Japan Hit Hard• Relied on Exports• Luxury goods like silk not wanted• Grows more untrustworthy of West and
continued to expand
Welfare States Rise in the West (example: New Deal in U.S.)