The Interwar YearsThe Interwar Years1919-1939

Versailles goes awryVersailles goes awryThe Treaty of

Versailles was supposed ensure peace, satisfy nationalistic desires, and exact revenge on Germany

Unfortunately, the terms of the treaty do not have the intended results

Ensuring Peace and Protecting New Ensuring Peace and Protecting New Nations?Nations?The League of Nations is weak

◦It cannot convince countries to disarm Why might that be the case?

◦It cannot help all of the new, struggling nations that were created

◦It does not include the US, Germany, or the newly created Soviet Union Why would this make it weaker?

Problems in GermanyProblems in GermanyThe punishment of Germany goes too far

and cripples their post-war economy in 1923

Hyperinflation occurs◦ German money is worthless

The emergence of a global The emergence of a global economyeconomy

Germany’s hyperinflation means it cannot pay reparations to the winners of WWI◦What effect will this have on those economies?

The US had a very strong economy after WWI, so they begin to lend money to Germany, which helps end their hyperinflation◦Now, who will start getting their reparation

payments again?This signals the growing connections

between the economies of different countries◦Why is that a good thing? Why could it be bad?

A brief period of A brief period of prosperityprosperitySome countries, like the US, were

strong during the post-WWI era◦What is this time period known as in

US History?

The end of prosperity: The end of prosperity: 19291929In October of 1929, the US Stock Market crashes

◦What does this mean?

Why was the stock market Why was the stock market crash such a big deal?crash such a big deal?

Causes of the Great Causes of the Great DepressionDepressionThe stock market crash was just

one cause of the global economic downturn which became known as the Great Depression

Other causes included:◦High tariffs◦The expansion of credit◦The linked economies due to war

reparationsVideo: http://www.history.com/videos/1929-stock-market-crash#1929-stock-market-crash

Results of the Great Results of the Great DepressionDepression

Affects countries across the globe◦Unemployment, bank failures, collapse of

creditGovernment responses vary

◦Some become very involved with running the economy, like in the US with FDR’s New Deal

◦Some cannot handle the crisis well, so their people begin to look for other alternatives Communist parties grow Dictators who offer simple solutions in exchange for

power appear in some countries