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THE ECONOMY IN THE INTER-WAR YEARS - Coggle Diagram
THE ECONOMY IN THE INTER-WAR YEARS
the period between...
(1918–1939)
the First World War and the Second World War
economies
European countries
various phases
post-war crisis
recovery in the 1920s
Wall Street Crash of 1929
Great Depression of the 1930s
United States
POST-WAR CRISIS
Europe
experienced a significant economic crisis
a shortage of products
destruction of areas of lands
increase in prices
high levels of debt
loans from the United States
to pay for the costs of war
war ended
loans had to be repaid
Germany
suffer the crisis
war reparations
circulated large quantities of bank notes
hyperinflation
France
occupy the richest and most industrialised area of Germany
made the economic crisis in Germany worse
The suffragist movement
end of the war
women
did not accept the re-establishment of their traditional social role.
the suffragist movement
half of the 19th century
mobilisation of women
supported by the Socialist Party
established International Women's Day
main aim
was to be allowed to vote
achieved this after the post-war period
RECOVERY IN THE 1920S
recover from the crisis
Japan
industries had not been devastated by war
United States
help European countries come out of the economic crisis
Dawes Plan lead to...
In 1924, Germany
economic measures
involved loans and American investment
aim of increasing the value of the German mark
revised and reduced war reparations payments
France also agreed to abandon the occupied areas of the Ruhr
1925, Germany
economy began to recover
able to pay reparations to the victorious European countries
able to pay back their loans
were able to pay back their loans
roaring twenties'
the world economy began to recover and grew steadily
by the mid-1920s
United States also helped other European countries
giving them loans and selling the consumer goods they lacked
economic prosperity
life was focused on enjoyment
society changed
new forms of entertainment
cabarets
music-halls
ballrooms
Famous Hollywood film stars
Greta Garbo
Charlie Chaplin
Rudolph Valentino
Consumerism
sales of consumer goods
car industry and the development of the production of electricity
shares in companies
stock market because they paid large profits
THE WALL STREET CRASH OF 1929
causes of the crisis and the Wall Street Crash
Industrial overproduction
during the First World War
American industry had increased production
supply Europe
European industry started to recover
European countries bought less from the United States
American industry did not reduce levels of production
number of products available
products available
greater than the number of products that were sold
unsold products accumulated in warehouses
Companies
lost money
some even had to close down
Unemployment rose
people had less money to buy consumer goods
Agricultural overproduction
during the war
American agricultural system had increased its production
had been possible due to the cultivation of more land
mechanisation of agriculture
tractor
harvester
threshing machine
After the war
European countries
produce their own agricultural products
American agricultural production was maintained
a surplus of production
prices to fall
increase in unemployment
factories closing
demand for agricultural products decreased
farmers were ruined
Speculation on the stock market and excessive bank credit
period of prosperity
bought shares in companies on the Wall Street
obtained credit or loans from the banks
increasing demand for shares
rise in share prices
companies
bankrupt
financial crisis
sold shares on the stock market
have problems
caused share value to fall dramatically
stock market crisis spread
financial crisis
without liquidity
people tried to withdraw their savings from the banks
THE GREAT DEPRESSION OF THE 1930S
Great Depression
1930s
Wall Street Crash
1929
continued for a decade
economic crisis
led to a fall in prices (deflation)
end to the prosperity
consequences were the following
Wages fell
unemployment increased
forced to live off charity and government support
world economy was affected
United States reduced imports
protectionist measures
increasing taxes
foreign products
Companies closed
fall in sales and a lack of credit
Banks collapsed
decrease in the standard of living
generating discontent with the liberal capitalist system
Attempts at a solution: the New Deal
measures
limit agricultural and industrial production
establish government control of the stock market
carry out public works
establish a minimum wage and provide unemployment
give subsidies to agricultural producers
