THE ECONOMY
POST-WAR CRISIS 1918 - 1923
high levels of debt
loans from the United States
for the costs of war
a shortage of products
destruction of areas of agricultural land, factories and transport systems
an increase in prices
Germany
suffered the crisis and paid war reparations
government circulated large quantities of worthless bank notes
hyperinflation
In 1923
economic crisis in Germany worse
France occupyed the Ruhr
the richest and most industrialised area of Germany
prices rose excessively
industrial production fell
The suffragist movement
women
not accept the re-establishment of their traditional social role
protest against the inequality
supported by the Socialist Party
in the USA and Europe
established International Women's Day
the main aim = to be allowed to vote
THE WALL STREET CRASH OF 1929
RECOVERY IN THE 1920S
From 1925 on
roaring twenties
In 1924
the United States applied the Dawes Plan
in Germany
loans and American investment
in August 1925
France agreed to abandon Ruhr
Germany's economy recovered
paid back their loans
world economy began to recover and grew
society changed
consumers bought shares in companies on the stock market
life was focused on enjoyment
new forms of entertainment
cabarets, music-halls, ballrooms, radio shows cinema...
famous Hollywood film stars
Greta Garbo, Charlie Chaplin and Rudolph Valentino
Wall Street stock market in New York collapsed
causes
Industrial overproduction
Agricultural overproduction
Speculation on the stock market and excessive bank credit
share value not reflect the real value of the companies
the supply was greater than the demand
unsold products accumulated in warehouses (stocks)
companies lost money and had to close down
unemployment rose
consumption decreased
was a surplus of production
increase in unemployment
cultivation of more land and the mechanisation
caused prices to fall
farmers were ruined
demand for agricultural products decreased
bought shares in companies
as they offered guaranteed profits
on the Wall Street stock market
obtained credit or loans from the banks
the Wall Street Crash
thirteen million shares went up for sale
On 24 October 1929
share value to fall dramatically due to oversupply
stock market crisis spread
became a financial crisis
of 23000 banks --> 5000 closed
THE GREAT DEPRESSION OF THE 1930S
A fall in prices --> deflation
United States the repays of the loans they had given
Consequences
World economy was affected
A decrease in the standard of living
Wages fell
Companies closed
a fall in sales
a lack of credit
unemployment increased
countries increased taxes on foreign products
United States reduced imports
discontent with the liberal capitalist system
In 1933
The New Deal
a series of economic and social measures
promised to reactivate the economy
implemented by President Franklin Roosevelt
after 1938
the United States economy began to recover
