Section II: Upheaval in the WestSection II: Upheaval in the West(Pages 644-647)(Pages 644-647)

Section II: Upheaval in the WestSection II: Upheaval in the West(Pages 644-647)(Pages 644-647)

This section is about:This section is about: How Europe tried to How Europe tried to

rebuild after World War I rebuild after World War I and how countries looked and how countries looked for a permanent peace.for a permanent peace.

How the economic How the economic recovery in the 1920recovery in the 1920’’s was s was followed by the Great followed by the Great Depression.Depression.

The problems faced by The problems faced by France and Great Britain at France and Great Britain at this time and how these this time and how these democracies tried to solve democracies tried to solve their crises.their crises.

What time period is this What time period is this ““upheavalupheaval”” from? from? Look at the Look at the ““Main IdeasMain Ideas”” on page 644. on page 644. In the picture on page 646, what are the men doing?In the picture on page 646, what are the men doing? Look at the graph on page 645 – even if you donLook at the graph on page 645 – even if you don ’’t know much t know much

about the stock market, what does the graph show (good or about the stock market, what does the graph show (good or bad)?bad)?

Rebuilding After the WarRebuilding After the War

In 1918, the Allies had won In 1918, the Allies had won WWI.WWI.

Great Britain, France, and Great Britain, France, and the U.S. were the major the U.S. were the major forces behind the peace forces behind the peace treaty.treaty.

These were all These were all democracies, and their democracies, and their hope was that democracy hope was that democracy would spread to new would spread to new areas.areas.

But the war had But the war had destroyeddestroyed much of Europe: towns, much of Europe: towns, economies, families, etc…economies, families, etc…

Europe was hoping to have Europe was hoping to have a brighter future.a brighter future.

Problems After the WarProblems After the War The aftermath of the war was The aftermath of the war was

different than people had different than people had hoped.hoped.

The Treaty of Versailles had The Treaty of Versailles had ended the war.- but, Germany ended the war.- but, Germany was asked to pay huge was asked to pay huge amounts in reparations.amounts in reparations.

The U.S. asked people to pay The U.S. asked people to pay back their loans from us – but back their loans from us – but how could they re-build if they how could they re-build if they paid us back?paid us back?

Most nations had inflation and Most nations had inflation and unemployment.unemployment.

The damage from the war The damage from the war destroyed many factories.destroyed many factories.

Germany couldnGermany couldn’’t pay what it t pay what it was supposed to.was supposed to.

The U.S. actually ended up The U.S. actually ended up giving more loans to Europe giving more loans to Europe and Germany (and didnand Germany (and didn’’t get t get their money back).their money back).

The Search for Lasting The Search for Lasting PeacePeace

Remember, Woodrow Remember, Woodrow WilsonWilson’’s 14s 14thth Point Point was to form a was to form a “League of Nations” “League of Nations” to keep world peace.to keep world peace.

This did happen, and This did happen, and many nations began a many nations began a plan of plan of disarmament disarmament (cutting their supplies (cutting their supplies of weapons).of weapons).

Boom and BustBoom and Bust Things started getting better Things started getting better

for Europe in the 1920for Europe in the 1920’’s.s. Peacetime trade and Peacetime trade and

production resumed.production resumed. Industrial workers were Industrial workers were

making more money.making more money. People could now buy new, People could now buy new,

modern things like radios and modern things like radios and even cars.even cars.

After WWI, the U.S. had After WWI, the U.S. had become the worldbecome the world’’s greatest s greatest industrial power.industrial power.

We also went from being a We also went from being a debtor nation to a lender (and debtor nation to a lender (and we helped out Europe).we helped out Europe).

As long as the U.S. economy As long as the U.S. economy was strong, the world was strong, the world economy would probably be economy would probably be okay.okay.

Hidden WeaknessesHidden Weaknesses(there were some problems people didn(there were some problems people didn’’t notice right away)t notice right away)

Better technology = increased Better technology = increased production.production.

Better faming techniques = Better faming techniques = more food.more food.

As supplies increased, prices As supplies increased, prices dropped.dropped.

Industries began to suffer Industries began to suffer from from overproduction overproduction (made (made too much), but kept on too much), but kept on producing.producing.

Many countries tried to Many countries tried to protect their own goods by protect their own goods by raising tariffs, but that ended raising tariffs, but that ended up stopping most imports and up stopping most imports and exports.exports.

Loans and credit became very Loans and credit became very easy to get and banks made easy to get and banks made loans people might not be loans people might not be able to pay back.able to pay back.

People wanted to find ways to People wanted to find ways to make money, and at the time, make money, and at the time, the stock market seemed like the stock market seemed like a good idea.a good idea.

Buying Into the U.S Stock Buying Into the U.S Stock MarketMarket

The U.S. stock market did The U.S. stock market did real well in the 1920real well in the 1920’’s.s.

Investors kept taking bigger Investors kept taking bigger and bigger risks.and bigger risks.

In 1929, people realized In 1929, people realized prices could not keep rising.prices could not keep rising.

Many began selling their Many began selling their shares to get their money shares to get their money back.back.

So, prices dropped some.So, prices dropped some. People tried to sell more.People tried to sell more. Prices dropped some Prices dropped some

more……more……

Worldwide Economic CrisesWorldwide Economic Crises

October, 1929: The start of October, 1929: The start of the the Great DepressionGreat Depression: the : the stock market stock market ““crashed.crashed.””

People were worried about People were worried about their money, so they went to their money, so they went to banks to banks to try and get ittry and get it..

Banks donBanks don’’t have all your t have all your money all at once, so some money all at once, so some had to had to ““close.close.””

Many people lost all their Many people lost all their savings.savings.

Banks that could, tried to get Banks that could, tried to get money back from Europe, to money back from Europe, to banks they had loaned money banks they had loaned money to – and then those European to – and then those European banks had to close.banks had to close.

Factories need investors, and Factories need investors, and many of them had to close.many of them had to close.

People lost jobs, homes, etc…People lost jobs, homes, etc…

(world economic crisis: people lost everything – jobs, homes, hope, etc…)

Western European Western European DemocraciesDemocracies

(France)(France) France sustained more France sustained more

physical damage than any physical damage than any other European country other European country (that(that’’s why they got Alsace-s why they got Alsace-Lorraine back in German Lorraine back in German reparations.reparations.

Germany was also forced to Germany was also forced to pay France a lot of money pay France a lot of money and this helped their and this helped their economy recover quickly.economy recover quickly.

But, FranceBut, France’’s government s government and political parties had and political parties had disagreements about what disagreements about what to do with the reparations – to do with the reparations – it caused a lot of problems it caused a lot of problems for France.for France.

People in France continued People in France continued to to distrustdistrust Germany though Germany though (they had invaded them a (they had invaded them a few times).few times).

Western European Western European Democracies Democracies (Great Britain)(Great Britain)

BritainBritain’’s government was deeply in s government was deeply in debt after WWI.debt after WWI.

Many of their ships (trade) had Many of their ships (trade) had been destroyed by German U-been destroyed by German U-Boats.Boats.

Unemployment was high and Unemployment was high and wages were so low, in 1926 wages were so low, in 1926 England had a England had a general strikegeneral strike (many (many groups all striking at once).groups all striking at once).

The British Empire was also The British Empire was also beginning to lose territories at this beginning to lose territories at this time.time.

One of their issues was with One of their issues was with Ireland, who wanted Ireland, who wanted ““home rulehome rule”” and got it after a war with the IRA and got it after a war with the IRA (Irish Republican Army) in 1922.(Irish Republican Army) in 1922.

In 1931, South Africa, New In 1931, South Africa, New Zealand, Australia, and Canada all Zealand, Australia, and Canada all were given full independence from were given full independence from the Great Britain.the Great Britain.

These areas were all part of the British Empire at

one time