Ch. 9.1 The Futile Search for Stability

Question 1

depression

Answer 1

period of low economic activity and rising unemployment (ex. economic collapse of Great Depression: overproduction, aftermath of WWI, and U.S. stock market crash)

Question 2

collective bargaining

Answer 2

right of unions to negotiate with employers over wage and hours (granted to workers in French New Deal)

Question 3

deficit spending

Answer 3

going in debt

Question 4

Dawes Plan

Answer 4

international commission produced this plan for reparations in August 1924; coordinate Germany’s debt paying; initial $200 million loan for German recovery; (plan named after American banker)

Question 5

Treaty of Locarno

Answer 5

German (Stresemann) and French (Briand) foreign ministers signed this in 1925; guaranteed new western borders for Germany; viewed as beginning of era of European peace

Question 6

Weimar Republic

Answer 6

after William II in 1918 of Imperial Germany—>German democratic state created after WWI; problems: no good leaders (Pres. Hindenburg was bad), economic problems (inflation—>social problems), some prosperity (1924-9), 1930: unemployment—>rise in fear and extremist parties

Question 7

John Maynard Keynes

Answer 7

British economist; published {General Theory of Employment, Interest, and Money} (1936); thought unemployment caused by decline in demand, not overproduction; increase demand by financing projects to increase work

Question 8

Franklin Delano Roosevelt

Answer 8

Democrat president; elected 1932; pursue New Deal

Question 9

New Deal

Answer 9

policy of active government intervention in economy; increased public works; new social legislation (U.S. welfare system); reforms that prevented social revolution; unemployment not solved

Question 10

Ruhr Valley

Answer 10

chief industrial and mining center for Germany; France occupied the area after Germans could no longer pay reparations; French planned to operate/use Ruhr mines and factories

Question 11

League of Nations

Answer 11

U.S. not involved—made it weak; agreed not to use force against nations that violated international law; Germany joined in March 1926; combination of nations to support international peace

Question 12

flu epidemic (the Great Flu Epidemic)

Answer 12

occurred at end of WWI; called Spanish influenza; killed 22 million people; believed to spread from Kansas-American soldiers to Europe to world

Question 13

inflation

Answer 13

rise in prices; ruined German economy; also made marks more worthless