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