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THE ECONOMY IN THE INTER-WAR YEARS 7.1 image, image, image, image, image,…

- - - - a shortage of products
        
        destruction of agricultural land / factories / transport
        
        prices ++
      - high levels of debt
        
        war ended --> loans repaid
        
        loans from the United States --> costs of war
  - - - crisis
      - pay war reparations
    - - hyperinflation
      - large amounts money ---> basic goods
      - no gold
  - - - wanted to participate in political / economic life
    - - International Women's Day (1911)
      - wanted to be allowed to vote
    - - 1918 --> Russia, Great Britain, Poland, the Netherlands, Austria
      - 1919 --> Germany, Belgium
      - 1920 --> Czechoslovakia, USA
  - - - richest / most industrialised area of Germany
      - Germany's economic crisis worse
- - - - US to Germany
      - loans/ American investment in German industry
      - reduced war reparations payments
      - France abandoned Ruhr (August 1925)
  - - - European countries pay back loans
  - - - loans/ sell goods to Europe
    - - life focused on entertainment
        
        cabarets, ballrooms, cinema...
        
        Hollywood film stars -> Charlie Chaplin...
- - - - supply + and demand -
        
        Europe recovered --> bought less
        
        US not decrease production
      - unemployment +
        
        people not have money to buy goods
    - - agricultural production +
        
        more cultivation land (for Europe)
        
        mechanisation
      - surplus
        
        prices -
        
        Europe its own agricultural products
      - unemployment +
        
        demand -
        
        factories closed
        
        farmers ruined
    - - bought shares in companies
        
        guarantee profits
        
        credit/ loans from bank
  - - - affected banks --> financial crisis
      - banks no liquidity
      - people withdraw savings from banks
      - not sell their shares --> not pay back loans
- - - - United States stop investing
      - countries repay loans to US
  - - - liberal capitalist system
        
        generations discontent
        
        blamed for crisis
    - - US less imports
      - other countries protection measures --> + taxes
    - - fall in sales / lack of credit
      - lack of liquidity in banks
    - - unemployment ++
      - people lived from charity /government support
  - - - US President Franklin Roosevelt
      - 1933
      - social / economic measures
        
        subsidies to pay off loans--> agricultural producers
        
        ++ employment --> public works
        
        limit agricultural / industrial production
        
        government control of stock market
        
        disability insurance / old-age, widow's benefits