The Victorious Democracies

The Interwar Period

The United StatesIsolationism vs. Interventalism

Avoiding future wars International Disarmament

Conference (1922)Kellogg – Briand Pact (1928)

The Undoing of the US

1920’s – US the world powerTechnology boom, Wall

Street bubble

1930’s – Crash, economic ruinFDR’s New Deal

(socialism in US)

US in Control – 1920s

US is booming during the 1920s

Dawes Plan -

What is a Depression?

A severe economic downturnHigh unemploymentLow GDP (sum of all

goods and services produced by a nation)Consumer spending,

investment spending, government spending, net exports

The Reality of the Great Depression

Hundreds of banks close which wipes out billions in savings

In 1933364,000 farms went

bankruptGDP decreased by

40%Unemployment Rate

= 25%

Stock Market CrashMany investors

margin buying

Bubble developed

Panic sell-off wiped out fortunes

29 October 1929The Dow fell 40%

and $30,000,000,000 lost

Banks Runs – banks out of money because of margin loans – banks fail

A Depression Era Bank Run

The Great Depression

The Problem Feeds Itself

Products such as cars and ovens are durable goods (they last a long time)

As factories started to have a surplus of products, they started to lay off workers

National governments begin to raise tariffs on foreign goods to protect national production

Unemployment

Agricultural Overproduction

Farmers try to produce more to lower cost and spark demandNothing but huge surpluses of crops, not worth the

money even to sell

Farmers lost huge amounts of money and some even burned their crops and poured out milk EVEN AS PEOPLE STARVED!

The Floundering VictorsEngland

Unemployment, war debts, Britain failing

Strikes (army sent in to clear, end up running industries)

Socialist Ramsey MacDonald PM

Many fear this is the start of communism…

EnglandThe Labour Party gains

strength in gov’t, begins to move the country toward socialism

The “Irish Question”?Rise of the IRA1922 – moderates in

Ireland and Britain reached an agreement Self-governing Irish Free

State

The Other “Winner”?France

Physical/Economic and political ruin50% of all 18-32

year olds deadSocialist Leon

Blum new PMFascists rising…

Terrified of Germans, built the Maginot Line