Bellringer Download todays notes Post War Instability Notes

Bellringer • Download today’s notes: Post War Instability Notes • Answer the following question: • Recall the terms of the Treaty of Versailles. What were the 4 punishments for Germany? How do you think this affected Germany after the war?

The Big Idea! • Peace and prosperity were short-lived after World War I as a global depression weakened Western democracies. • 1. Discontent with the Treaty of Versailles and a weak League of Nations opened the door to new problems in the interwar years. • 2. Underlying economic problems and an American stock market crisis triggered the Great Depression. • 3. The Depression shook people’s confidence in political democracy.

Treaty of Versailles Unhappiness • The League of Nations was ____. • The United States never joined. • France wanted security, so they ____ enforced the Treaty with Germany. • Germany owed $33 billion in reparations (132 billion German marks) – must pay 2. 5 billion marks each year • Germany made its first payment in 1921, but had a financial crisis the next year and ____ • France sent troops to ____ the Ruhr Valley in Germany • • Germany’s chief industrial and mining industry France would collect reparations from the mines and factories What do you think the German response to this was? ____ How might a stronger League of Nations have discouraged France’s decision to occupy part of Germany? ____

French Invasion of the Ruhr Valley

The French in the Ruhr: 1923

The French Occupation of the Ruhr

German Inflation • Germans passively resisted French occupation – workers went on ____ • German government ____ more money to pay workers. Why is this a problem? ____ • ____ – rise in prices • The German mark soon became ____. • 1914: 4. 2 marks = 1 U. S. dollar • Nov. 1, 1923: 130 billion marks = 1 U. S. dollar • Nov. 30, 1923: 4. 2 trillion marks = 1 U. S. dollar • Disaster for both France and Germany. Why? ____

The German Mark

German Inflation

• The price of goods rose so quickly that it was easier to exchange food for items rather than pay for them with money. These people are exchanging food for circus tickets.

German Inflation • An international commission proposed the ____to fix the problem. • Reduced reparations • $200 million for German recovery • Opened the door for ____ investment in Europe • Brief period of ____ lasted from 1924 -1929

European Debts to the United States

Glimpse of Peace • Treaty of Locarno (1925): Germany and France agreed on ____ • New York Times – “France and Germany Ban War Forever” • London Times – “Peace at Last” • Kellogg-Briand Pact (1928): 65 nations pledged to “renounce ____ as an instrument of national policy” • What is the problem with this? ____

Great Depression • ____ – a period of low economic activity and rising unemployment • Two major causes: • 1. Economic ____ in many nations’ economies • Prices fell due to ____ (industrialization and Roaring 20 s) • 2. U. S. ____ crash • European prosperity was tied to U. S. ____ to Germany • U. S. investors pulled money out of Germany to invest in the booming U. S. stock market • U. S. stock market ____ in October 1929, and investors pulled even more money from Germany and Europe • European banks collapsed, trade slowed, industrial production declined, and ____ rose

Great Depression • In 1932 (worst year of the Depression) nearly 1 in every 4 British workers were unemployed. 5. 5 million (30%) of German workers were unemployed. • Unemployed and homeless filled the streets. • Governments tried to fix things by ____ wages and raising ____ (taxes on imported goods), but this made things worse and had political effects.

Great Depression • Major effects: • 1. Increased ____ control of the economy. • 2. Marxist ideas (____) became more popular due to low wages and high unemployment. • 3. Rise of ____ parties - masses of people began to follow political leaders who offered simple solutions in return for dictatorial power. People lost trust in new democracies.

Connect! • 1. Why did France occupy the Ruhr Valley in Germany? • 2. What was the German response to the Ruhr Valley occupation? • 3. What is inflation? • 4. What agreements gave a brief glimpse of peace in Europe? • 5. What were the major causes of the Great Depression? • 6. What were the major results of the Great Depression?