The economic situation: The “booming twenties”

The rise of the democracies and

the Fascism

(1918-1939)

The booming twenties

• As the 1920s went on, it seemed that there was a real chance that peace would last.

• Most countries were getting richer.

• It was called “the roaring twenties”

Technology for domestic markets

Some successes: Diplomatic relations btw Russia and Germany, Germany joined the League…

Behind the prosperity there were signs of trouble.

• USA was properous– Cheap labour– High wages– Mass production

Construction of skyscrapers in USA

Cultural boom• USA Century!• Hundreds of $ loaned

by USA to Europe to recover from WW1

The boom ended in 1929

Overproduction

Boom=to borrow

Americans bought shares

Supply and demand

Artificial prices!!

• People hoped banks keep value

• They had short of money

• Banks failed• Goverment made

nothing: free market

Why not selling goods to Europe?

• European industries were recovering, so they bought less USA products.

USA

• Recovery under Roosevelt (“New Deal”)