• What caused the Great Depression and how did the United States and European nations recover?
• Thesis• New Democracy
– Coalition Government– Weimar Republic– Dawes Plan– Kellogg–Briand
• The Great Depression– U.S. Economy– Black Tuesday– Global Depression
• Recovery– European Economy– The New Deal
• Conclusion: What economic lessons can be learned from the Great Depression?
Coalition Government
• Democracy introduced to European countries
• Political parties run countries together called coalitions
• They struggle with crises
Weimar Republic
• Government of Germany after the Great War
• Very unpopular due to Treaty of Versailles
• Economic problems due to reparations
• Print more money to pay• hyperinflation
Dawes Plan
• Dawes Plan • US plan to help
Germany with hyperinflation
Kellogg–Briand • Pledged to renounce
war as an instrument of national policy
• No way to enforce treaty
• League of Nations too weak with out US
The Great Depression
• US economy has a boom in the 1920s
• 3 flaws in economy– Uneven distribution of
wealth– Overproduction by
business and agriculture– Lessening demands for
consumer goods
Black Tuesday
• Stock market had boom in prices in 1929
• Buying on the margin• Prices collapse on
Tuesday October 29• Start of the Great
Depression
Global Depression
• American bankers demanded repayment of European loans
• US government places high tariffs on foreign goods, countries reciprocate
• World trade drops 65%
European Economy
• Direct government intervention in economy
• Communists become more popular in Europe due to failure of capitalism
New Deal
• President Roosevelt starts massive public work spending program called New Deal
• Criticized by capitalists
