A Worldwide Depression Flashcards
What were European nations doing by the late 1920’s
rebuilding war-torn economies
Who provided Europe with loans when they were rebuilding war-torn economies?
The US
Which countries came out of the war better than before?
Japan and the US
How did the war leave Europe financally?
Bankrupt
What happened to europe’s domination in world affairs after the war
it declined
What form of government popped up in places after the war?
democracies
What happened from 1914-1918 in Europe?
The last absolute rulers were overthrown
When and where was the first of the new democracies that popped up after the war?
Russia in 1917
What did Russia call the new gov after war?
The Provisional Gov
What happened to the Provisional Gov?
It fell to a communist dictatorship
Coalition Gov
Temporary alliance of several parties
What happened when none of the many political groups in Europe won a majority
A coalition gov formed a parliamentary majority
Why were coalitions usually short?
Because all the different parties disagreed
Germany’s new democratic government
Weimer republic
Weakness of the Weimer republic?
- Germany lacked a strong democratic tradition
- Postwar Germany had several major political parties and minor ones
- Biggest reason: Germans blamed Weimer Republic for their countries defeat and humiliation of Versailles treaty
How did Germany pay for the war?
-They printed more money
What negative effect did Germany’s printing money on the masses cause?
hyperinflation
What did the people start to question after hyperinflation?
The value of their democratic government
How did Germany recover from inflation?
an international committee
Who was in charge of the international commitee that saved Germany from inflation, and what was his/her occupation?
Charles Dawes, an American Banker
How did the Dawes plan help stop inflation?
Provided for a $200 American loan to stabalize the German economy and set a more realistic schedule for Germany’s payments
What happened as the German economy recovered?
It attracted more loans and investments from the US.
What did Gustavv Stremann and Aristide Bride do as prosperity returned to Germany?
- Tried to improve relations with other countries
What did Gustavv Stremann (Germany’s minsiter) and Aristide Bride (France’s minster) to try and improve relations with other countries?
They signed a treaty with Belgium Italy and Britian
What did the treaty of Germany, France, Belgium Italy and Britian say?
- Belgium Italy and Britain wouldn’t make war with France or Germany
- Germany agreed to respect the existing borders of France and Belgium
What happened after Germany made a treaty with France, Belgium, Italy and Britian?
It was admitted to the league of nations
What did the hopes raised by “Spirit of Lacano” lead to?
Kelogg-Briand peace pact
Who all signed the Kellogg Peace Pact?
Almost every country, including the Soviet Union
What did the countries agree to in the Kelogg-Briand peace pact?
To renounce war as an instrument of national policy
What was the flaw with the Kelogg-Briand peace pact?
It didn’t have a way to enforce the agreement
Why couldn’t Kelogg-Briand enforce it’s agreement?
The chosen enforcer didn’t have any armed forces
Who was the chosen enforcer of the Kelogg-Briand agreement?
The Leauge of Nations
Why did the world’s economies collapse when the US economy weakened?
American factories were turning out nearly half of the world’s goods
Why did the US economy crash in 1929?
- Uneven distribution of wealth
- Overproduction by businesses and agriculture
- Many Americans were buying less
Why did an uneven distribution of wealth cause the US economy to crash?
Because most families were too poor to buy goods, so goods created were reduced, so people were laid off
How did overproduction cause the US economy to crash?
It drove prices and profits down
Stocks and the beginning of the great depression
People gambled because the economy was prospering. Then, when the stock market was high, people began selling their stocks, which caused it to go down so everyone panicked and sold, and there were no buyers.
What did the unemployed depend on at first?
Charity
Economic Depression
A long period of economic decline where there is low production, low employment rates, and loss of buisnesses
How did the Hoover administration help durring the great depression?
It basically didn’t
Where did homeless people live?
Hoovervilles
What caused the US to become further isolated?
The Great Depression
When did the US become less isolated?
When Franklin D Roosevent became president
Where did the stock buyers get money to pay off the banks?
Europe
How did the congress respond to people getting loans from Europe?
They made US an isolated currency
Effect of isolating US currency
Made the prob worse
Who was hit hardest by US’s economy crash in other part of the world
Austria and Germany
How did the US economy crash affect Latin America?
The purchase of their goods like beef, sugar and copper decreased
Britany’s steps to improve economy
- elected a multiparty coalation called the National gov
- passed high tax terrifs
- increased taxes
- regulated currency
Why was France not as affected as some countries by the Great depression?
It was more agrigultural and less reliant on trade
How did France improve it’s economy?
- moderates, socialists, and communists formed a coalation
What was The Popular Front
- France’s coalation
What did the Popular Front do?
- Passed a series of reforms to help workers
Solutions of Socialist governments
- gov sponsored big work projects
- raised penisons
- increased unemployent insurance
Who published a General Theory of Employment, Interest and Money?
John Maynard Keynes
Who came up with the Keynesian Economics
John Maynard Keynes
Keynesian Economics solution
- employ people through gov job programs
- change tax policies
- modifying spending for public funding
