• What caused the Great Depression and how did the United States and European nations recover?

• Thesis• New Democracy

– Coalition Government– Weimar Republic– Dawes Plan– Kellogg–Briand

• The Great Depression– U.S. Economy– Black Tuesday– Global Depression

• Recovery– European Economy– The New Deal

• Conclusion: What economic lessons can be learned from the Great Depression?

Coalition Government

• Democracy introduced to European countries

• Political parties run countries together called coalitions

• They struggle with crises

Weimar Republic

• Government of Germany after the Great War

• Very unpopular due to Treaty of Versailles

• Economic problems due to reparations

• Print more money to pay• hyperinflation

Dawes Plan

• Dawes Plan • US plan to help

Germany with hyperinflation

Kellogg–Briand • Pledged to renounce

war as an instrument of national policy

• No way to enforce treaty

• League of Nations too weak with out US

The Great Depression

• US economy has a boom in the 1920s

• 3 flaws in economy– Uneven distribution of

wealth– Overproduction by

business and agriculture– Lessening demands for

consumer goods

Black Tuesday

• Stock market had boom in prices in 1929

• Buying on the margin• Prices collapse on

Tuesday October 29• Start of the Great

Depression

Global Depression

• American bankers demanded repayment of European loans

• US government places high tariffs on foreign goods, countries reciprocate

• World trade drops 65%

European Economy

• Direct government intervention in economy

• Communists become more popular in Europe due to failure of capitalism

New Deal

• President Roosevelt starts massive public work spending program called New Deal

• Criticized by capitalists