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THE ECONOMY IN THE INTER-WAR YEARS - Coggle Diagram
THE ECONOMY IN THE INTER-WAR YEARS
Between (1918-1939)
European countries and the U.S.
Phases
Post-war crisis
Recovery in the 1920s
The Wall Street Crash of 1929
The Great Depression in 1930s
Post-war crisis
1918-1923
Characteristics of economic crisis in Europe
High level of debts
United States loans intended to pay the costs of laws
When the war ended, loans had to be payed
Shortage of products
For the destruction of agricultural areas
Increase in prices
Most affected was Germany
Pay war reparations
Hyperinflation
Large amount of money to buy basic goods
German didn't want to pay reforms to France
France took the richest part of Germany
Ruhr
Recovery in the 1920s
1924
Dawes Plan in Germany
Loans from Americas to Germany, with economic measures
Revised and Reduced war reparations payments
1925
German economy starts to recover
Abled to pay reforms in victorious countries
United States also helped European countries
Giving loans
Selling consumer goods they lacked
After this
Society focused on enjoyment
Cabarets
Music-halls
Ballrooms
Radio shows
Cinema
Suffering had passed
Wall street crash of 1929
Stock market collapsed
Beginning of major economic crisis
Great depression of 1930s
Causes
Industrial overproduction
Increase production to supply Europe
Europe industry recover, leave buying American products
American industry didn't stop producing
More supply than demand
Companies lost money, some close down
Unemployment rose
Consumption decreased further
Agricultural overproduction
During the war agricultural system increased
Prices went down
Level of unemployment decreased
Demand of agricultural products decreased
Farmers were ruined
Speculation on the stock market and excessive bank credit
Companies bought shares
Shares offered guaranteed profits
To buy shares companies obtained credit or loans from the bank
Great depression of the 1930s
Began with the Wall Street crash
Consequences
Companies closed
Fall in sales
Lack of credits
Wages fell
Unemployment increased
Forced to live off charity
World economy was affected
United States reduced imports
Other countries save national production
Decrease in standard of living
Discontent with the liberal capitalist system