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THE ECONOMY IN THE INTER-WAR YEARS, image, image, image, image - Coggle…
THE ECONOMY IN THE INTER-WAR YEARS
Post-war crisis
High levels of debt
This was because of the loans from United States, once the war ended the loans, had to be repaid
A shortage of products
Due to the destruction of areas of agricultural land, factories and transport systems, and as a consequence, an increase in price
Recovery in the 1920s
1924
United States applied the dawes plan in Germany.
his was a series of economic measures which involved loans and American investment in German industry.
1925
Germany's economy began to recover
It was able to pay reparations to the victorious European countries, which in turn, were able to pay back their loans
United States and Japan were the first countries to recover from the crisis
The wall street crash
In 1929, the Wall Street stock market in New York collapsed
Causes
Industrial overproduction
The number of products available was greater than the number of products that were sold.
Agricultural overproduction
an excess of production which caused prices to fall.
Speculation in the market
The increasing demand for shares led to a rise in share prices which caused stock market speculation
The depression of the 1930s
Companies closed
Banks collapsed because of a lack of liquidity.
Wages fall
Millions of people were forced to live off charity and government support.
World economy afected
United States reduced imports.
Decrease in standarg living
Generating discontent with the liberal capitalist system, which most people blamed for the crisis.
