1. A Worldwide Depression
Chapter 15 Section 2

2. Warm Up Vocabulary Economic downturn =
A severe downturn in the economy
Ideas
What happens in a depression?
Record class responses
Visual
How do the picture and graphs relate?
Explain in your own words

3. Postwar Europe, page 470 Work with your partner (A/B partners)
Read section OUTLOUD together
Fill in the chart TOGETHER
Identify the problems (Implied or clearly stated)
List them
Identify any possible solutions to each problem
Describe how each problem/solution worked out

4. The Weimar Republic, page 471
Germany lacked strong democratic tradition.
Germany had too many political parties.
Many Germans blamed the Weimar Republic for their loss in WWI and the punishment of Germany in the Treaty of Versailles.
The republic took the blame for the war not the wartime leaders, because they signed it. The WR leaders understood the terms were not going to benefit Germany but felt cornered to sign it.

5. Inflation Causes Crisis in Germany, page 471
Flow chart follows inflation cycle in Germany
Expenses
Spends
Prints
Money – Down Up
Continues
Collapsing

6. Attempts at Economic Stability, page 471 & Efforts at Lasting Peace, page 471-472
Work with your partner (A/B partners)
Read section OUTLOUD together
Answer the questions TOGETHER.
Use complete sentences
Avoid the terms “it”, “them”, “they”

7. Financial Collapse Slide 1
The U.S. financial success supported many other countries though __________________
loans
In 1929, the U.S. economy ________________ bringing the world’s economy down with it.
failed

8. Financial Collapse Slide 2
Three major problems with the U.S. economy were
___________ distribution of wealth
Uneven
___________ by business and agriculture
overproduction
Americans buying ________
less

9. Financial Collapse Slide 3
Business Overproduction
U.S. made ______ of the world’s industrial goods
One-half
Overproduction created huge ______________
profits
Most families were too ____ to buy goods, only the richest people earned large enough salaries to support buying goods
poor
Businesses ___________orders due to lack of sales
reduced
__________ was then reduced by manufacturers which led to layoffs
production
This system created a bad _____ cycle
economic

10. Financial Collapse Slide 4
In the 1920’s, improved ______ methods and machinery increased crop yields, or amounts of food
scientific
Overproduction and competition from foreign countries forced prices ________, leading to less profits
down
Farmers did not make enough profit to pay ____________, forcing some farms to close
loans
Unpaid loans made banks _________
fail

11. Financial Collapse Slide 5
The stock market was centered in ______ _________
New York
People wanted to get ________ on stocks and bought on margin
Rich
Buying on margin means buying stocks on a _____________ with a small down payment
loan
As long as prices go _____, people could sell stocks pay off loans and pocket the rest of the profit up
If prices went _____, they could not sell the stock at a profit to repay the loans
down

12. Financial Collapse Slide 5 Part 2
Some stockholders started to _____________________ that stock prices were higher than they should be, and started to sell them
worry
This worry led to wide scale ____________________ with stockholders
panic
So many stocks were sold at one time, with no one buying them up, that the stock market _________________________
crashed

13. The Great Depression Slide 6
Due to the stock market crash, the U.S. fell into the Great Depression, where business production declined and ________________________________ increased in large amounts
unemployment
People lost their money in ________________________________ accounts because banks had no money to give to account holders
savings
Farms were __________________ because loans could not be repaid to banks
lost

14. The Great Depression Slide 7
America responded to the economic downturn by U.S. banks demanding ___________________________ of loans from Europe
repayment
Americans that had invested in Europe were taking their money ______________________
back
The U.S. placed high tariffs, or taxes, on European goods so people would ___________ American goods and money stayed in the U.S.
buy

15. The Great Depression Slide 7 – Part 2
Foreign nations ______________________ to U.S. tariffs by increasing their tariffs on U.S. products, hurting the U.S. economy further
responded
World trade dropped _________________%!
65%
The economy got _______________________
worse
__________________________________ went sky high
unemployment