A Worldwide DepressionCHAPTER 15 SECTION 2
Warm Up
Vocabulary
Economic downturn =
A severe downturn in the economy
Ideas
What happens in a depression?
Record class responses
Visual
How do the picture and graphs relate?
Explain in your own words
Postwar Europe, page 470
Work with your partner (A/B partners)
Read section OUTLOUD together
Fill in the chart TOGETHER
Identify the problems (Implied or clearly stated)
List them
Identify any possible solutions to each problem
List them
Describe how each problem/solution worked out
The Weimar Republic, page 471
1. Germany lacked strong democratic tradition.
2. Germany had too many political parties.
3. Many Germans blamed the Weimar Republic for their loss in WWI and the punishment of Germany in the Treaty of Versailles.
Inflation Causes Crisis in Germany, page 471
Flow chart follows inflation cycle in Germany Expenses Spends Prints Money – Down Up Prints Continues Collapsing
Attempts at Economic Stability, page 471& Efforts at Lasting Peace, page 471-472
Work with your partner (A/B partners) Read section OUTLOUD together Answer the questions TOGETHER.
Use complete sentencesAvoid the terms “it”, “them”, “they”
Financial Collapse Slide 1 The U.S. financial success supported many
other countries though __________________loans
In 1929, the U.S. economy ________________ bringing the world’s economy down with it.failed
Financial Collapse Slide 2 Three major problems with the U.S. economy
were ___________ distribution of wealth
Uneven ___________ by business and agriculture
overproduction Americans buying ________
less
Financial Collapse Slide 3 Business Overproduction
U.S. made ______ of the world’s industrial goods One-half
Overproduction created huge ______________ profits
Most families were too ____ to buy goods, only the richest people earned large enough salaries to support buying goods
poor
Businesses ___________orders due to lack of sales reduced
__________ was then reduced by manufacturers which led to layoffs
production
This system created a bad _____ cycle economic
Financial Collapse Slide 4 In the 1920’s, improved ______ methods and machinery
increased crop yields, or amounts of food scientific
Overproduction and competition from foreign countries forced prices ________, leading to less profits down
Farmers did not make enough profit to pay ____________, forcing some farms to close loans
Unpaid loans made banks _________ fail
Financial Collapse Slide 5 The stock market was centered in ______ _________
New York
People wanted to get ________ on stocks and bought on margin
Rich
Buying on margin means buying stocks on a _____________ with a small down payment
loan
As long as prices go _____, people could sell stocks pay off loans and pocket the rest of the profit
up
If prices went _____, they could not sell the stock at a profit to repay the loans
down
Financial Collapse Slide 5 Part 2 Some stockholders started to _____________________ that
stock prices were higher than they should be, and started to sell them worry
This worry led to wide scale ____________________ with stockholders panic
So many stocks were sold at one time, with no one buying them up, that the stock market _________________________ crashed
The Great Depression Slide 6
Due to the stock market crash, the U.S. fell into the Great Depression, where business production declined and ________________________________ increased in large amounts unemployment
People lost their money in ________________________________ accounts because banks had no money to give to account holders savings
Farms were __________________ because loans could not be repaid to banks lost
The Great Depression Slide 7 America responded to the economic downturn by U.S. banks
demanding ___________________________ of loans from Europe repayment
Americans that had invested in Europe were taking their money ______________________ back
The U.S. placed high tariffs, or taxes, on European goods so people would ___________ American goods and money stayed in the U.S. buy
The Great DepressionSlide 7 – Part 2 Foreign nations ______________________ to U.S. tariffs by
increasing their tariffs on U.S. products, hurting the U.S. economy further responded
World trade dropped _________________%! 65%
The economy got _______________________ worse
__________________________________ went sky high unemployment