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Why did United States enter the war? Two reasons: 1. The sinking of the Lusitania and other merchant ships by German submarines 2. The Zimmerman Telegraph

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1917: The British ship Lusitania was sunk by a German submarine with 128 Americans on board.

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The Zimmerman Telegram Mexico declined the offer, but the British decipered the code.

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Impact in Europe The effects of World War I in Europe were devastating. European nations lost almost an entire generation of young men. France, where most of the fighting took place, was in ruins. Great Britain was deeply in debt to the U.S. and lost its place as the worlds financial center. The reparations forced on Germany by the Treaty of Versailles were crippling to its economy. World War I would not be the war to end all wars, as some called it. Too many issues were left unresolved. Too much anger and hostility remained among nations. Within a generation, conflict would again break out in Europe, bringing the United States and the world back into war.

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1929-1939 Stock market crash Didnt realize the effect it would have No money to replenish what was borrowed Many found being broke humiliating.

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The Roaring 20s The new concept of credit People were buying: Automobiles Appliances Clothes Fun times reigned Dancing Flappers Drinking

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Why was this bad? Credit system People didnt really have the money they were spending WWI The U.S. was a major credit loaner to other nations in need Many of these nations could not pay us back

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The Stock Market People bought stocks on margins If a stock is $100 you can pay $10 now and the rest later when the stock rose Stocks fall Now the person has less than $100 and no money to pay back

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And then. With people panicking about their money investors tried to sell their stocks This leads to a huge decline in stocks Stocks were worthless now People who bought on margins now could not pay Investors were average people that were now broke

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Herbert Hoover was president at the start Philosophy: Well make it! What He Did: Nothing The poor were looking for help and no ideas on how to correct or help were coming

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Farmers were already feeling the effects Prices of crops went down Many farms foreclosed People could not afford luxuries Factories shut down Businesses went out Banks could not pay out money People could not pay their taxes Schools shut down due to lack of funds Many families became homeless and had to live in shanties

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Many waited in unemployment lines hoping for a job.

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People in cities would wait in line for bread to bring to their family.

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Some families were forced to relocate because they had no money.

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Hooverville Some families were forced to live in shanty towns A grouping of shacks and tents in vacant lots They were referred to as Hooverville because of President Hoovers lack of help during the depression.

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A drought in the South lead to dust storms that destroyed crops. The Dust Bowl

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The South Was Buried Crops turned to dust = No food to be sent out Homes buried Fields blown away South in state of emergency Dust Bowl the #1 weather crisis of the 20th century

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Two Families During the Depression

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A Farm Foreclosure

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*FDR* When he was inaugurated unemployment had increased by 7 million. Poor sections (like Harlem) had 50% of the pop. unemployed Instated the New Deal (Focused on Relief, Recovery, and Reform)

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People everywhere were effected by the depression. It wasnt till President Roosevelt took over and tried to put the economy back together that people even saw a glimmer of hope.

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War Statistics Number of countries participating in the war = 61 Number of people participating = 1.9 billion Number of deaths = 72 million Number of European Jews killed = 6 million