The Great Depression A Global Phenomenon What caused

The Great Depression: A Global Phenomenon What caused the Great Depression and how did it spread to other areas?

Causes of the Depression: WW 1 • After the war, many countries were bankrupt. • Furthermore, many countries had lost significant numbers of their prime workers (men 18 -50) • Unemployment was fairly high after the war. • Food Shortages were common

Causes of the Depression: Treaty of Versailles • After WW 1 Germany was bankrupt • The Treaty demanded that Germany make reparations payments to help rebuild Europe • They borrowed money from the US to fund these payments, and eventually stopped paying altogether • Many European countries planned their economics around these payments

Hyperinflation in Germany

Causes of the Depression: Globalization • Since the time of European imperialism, a global economy had been emerging • With the economic troubles in Europe, they slowed their investment in foreign economies. • This caused other countries, especially in the Americas to see a slowdown in their own economies.

Causes of the Depression: Market Crash of 1929 • As early as September, people were afraid the stock prices would go down • They began to sell their stocks • On October 29, 1929, the US stock market crashed, because many people were selling off their stocks • This caused a run on the banks where people were trying to get their money • This caused many banks to go out of business

Unemployment: Year Population Labor Force Unemployed Percentage of Labor Force 1929 88, 010, 000 49, 440, 000 1, 550, 000 3. 14 1931 90, 710, 000 50, 680, 000 8, 020, 000 15. 82 1933 92, 950, 000 51, 840, 000 12, 830, 000 24. 75 1935 95, 460, 000 53, 140, 000 10, 610, 000 19. 97 1937 97, 870, 000 54, 320, 000 7, 700, 000 14. 18 1939 100, 360, 000 55, 600, 000 9, 480, 000 17. 05 1941 102, 700, 000 57, 530, 000 5, 560, 000 9. 66 • As the economies slowed, people lost their jobs • As unemployment went up, more people lost their job • By 1933, American unemployment was almost 25%

A New Deal: Roosevelt • In 1933, Franklin Roosevelt was elected president • 100 days: Roosevelt launches the “New Deal” -Creates government programs -Employs millions -Stimulates the economy -Very controversial today, but not then • Roosevelt becomes one of our greatest presidents