Chapter 15: The West Between the Wars

AN AGE OF ANXIETY

Why did the Treaty of Versailles Fail and the BIG THREE DISOLVE? __________________: Policy of Isolation

__________________: Wanted a Healthy German Economy to Trade With -John Maynard Keynes DENOUNCES TREATY:

o Impoverish Germanyo Encourage Bolshevismo Economically hamper Europe

__________________: Felt Betrayed due to the absence of the two above FOREIGN POLICY WITH GERMANY: ENFORCE HARSH TREATY

Economic Restitution Security: Germany Crippled

Alliances with Poland and Czechoslovakia

Enforcing the Treaty Bill: 132 Billion Gold Marks, 2.5 Billion/ Year

o 1921 Weimar Republic Pays 1st Installment Paid in coal, iron, and wood

o 1922 Weimar Republic REFUSES TO PAY AGAIN

Question: What policy do you follow as Prime Minister of France concerning Germany?

Be sure to consider that the two major powers who crafted the Versailles Treaty with you have abandoned you, the horrors of World War I are only four years ago, and Germany has refused to pay future installments

Response: ____________________________________

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Hands off the Ruhr

Chapter 15: The West Between the Wars

The German Economy Crumbles in Early 1920’s

French and Belgian Soldiers invade Ruhr

German Industrial District

Germans went on strikeo Paid no reparationso No Industrial Production o Crippled German Economy

German Hyperinflation:o Overprints paper moneyo WWI War Debto Reparationso French invasion of Ruhr and Germany’s

passive economic resistance

Chapter 15: The West Between the Wars

A NEW HOPE in Foreign Affairs

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A NEW HOPE in Economics _________________

o Germany, France, Great Britain, USAo German reparations were reduced and dependent on Economic Conditions

o U.S. would loan to Germans, who paid France and Great Britain, who paid U.S. back

Chapter 15: The West Between the Wars

A NEW HOPE in Foreign Relations Locarno Agreement

o Germany and France reach peaceful border agreementso Britain and Italy agree to attack German or French Aggressor against other

Kellogg-Briand Pacto Engineered by U.S. and Franceo 15 Nations renounced war as instrument of international policy

BUT DID I SPEAK TOO SOON?

_________________________-Worldwide Economic Depression-From 1929-1939

Outbreak of the Depression: America

Chapter 15: The West Between the Wars

1. Crash of American Stock Market 1929o Buying on Speculationo Pay 10% to own stocko False rise in stock priceso Prices eventually drop

Panic Liquidation, Prices Plummet, Market Crashes

2. Bank Crisiso Stock Market Crash Loss confidence in

bankso Massive withdraws cause banks to failo Failed banks cause more massive withdraws

3. Lack of Moneyo People Stopped Spending Moneyo Banks Had No Money to Loano Production and Prices Plummetedo Unemployment Skyrocketed

DRAW A CONNECTION: The Effects of the Great Depression are felt in Europe, THUS EXPLAIN: Why the Great Depression Spread to Europe? Which European country is going to experience the most hardships as a result of this depression and Why?

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RESPONSES TO THE DEPRESSION

1. Initial Government Responses Worsen Situationo Implemented High Tariffs That Crippled Foreign Trade

No foreign investment or loanso Poor Domestic Policy

Governments cut spending and balanced budgets

***ECONOMIES WERE SUFFOCATING FROM LACK OF MONEY***

2. John Maynard Keynes Spoke alone on how to fix/manage crisis Governments must RAISE SPENDING and RUN DEFICITS TO STIMULATE ECONOMY Increase Demand/Spending Increase Production Increase Employment

Chapter 15: The West Between the Wars

Question: Can you explain why Maynard Keynes would be proud?

Social Recovery Programs The implementation of social programs in the United States, France, Great Britain, and other European

nations helped stave off social revolutions and help manage the crisis.o Established Minimum Wageo Public Works Programso Welfareo Social Security

They did not solve the Depression and in many cases the Depression divided nations.

Concluding Analysis on the Next Page

Concluding Analysis1. As you have concluded your study of World War I, the 1920’s, and the early 1930’s EVALUATE if it is appropriate

to refer to this point in time as “The Age of Anxiety”.

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Chapter 15: The West Between the Wars

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2. EXPLAIN WHY intellectual thought in Western Societies began to reject logic and reason and truly question the progress of human kind.

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3. Use your ASSESSMENT of the events during the “Age of Anxiety to PREDICT the impact these events will have on Nations in the 1930’s and 1940’s.

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