Please enable JavaScript.
Coggle requires JavaScript to display documents.
The economy in the inter-war years, image, image, image, image, image,…
The economy in the inter-war years
POST-WAR CRISIS (1918 -1923)
economic crisis
high levels of debt
because of loans from the United States intended to pay for the costs of war
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 prices
Germany
One of the most severely affected countries
had to suffer the crisis
had to pay war reparations
hyperinflation
the German government circulated large quantities of bank notes
the German people needed large amounts of money to buy basic goods
The suffragist movement
it started in New York and Great Britain in the second half of the 19th century
they continued to protest against the inequality between men and women
at the end of the war women didn't accept the re-establishment of their traditional social role
they fight for women's right to participate in political and economic life
In the USA and Europe
the mobilisation of women was supported by the Socialist Party
established International Women's Day (8M), a day of reflection and protest in favour of women's right
they achieved the right to vote in
1918
Russia
Poland
Austria
the Netherlands
Great Britain
1919
Great Britain
Belgium
1920
USA
Czechoslovakia
1923
France realised that it would not receive the reparations it needed from Germany to help rebuild its economy
decided to occupy the richest and most industrialised area of Germany, Ruhr
The loss of this territory made the economic crisis in Germany worse
prices rose excessively
industrial production fell
RECOVERY IN THE 1920S
United States helped European countries come out of the economic crisis
First countries to recover from the crisis
Japan
The United States
Dawes Plan
they wanted to increase the value of the German mark
France also agreed to abandon the occupied areas of the Ruhr in August 1925
this also revised and reduced war reparations payments
economic measures which involved loans and American investment in German industry
In 1924 the US applied this on Germany
roaring twenties
Germany's economy began to recover
it was able to pay reparations to the victorious European countries
this ictorious European countries, in turn, were able to pay back their loans
The US also helped other European countries by
giving them loans
selling the consumer goods they lacked
by the mid-1920s, the world economy began to recover and grew steadily
it was a prosperous time
With economic prosperity, society changed
the suffering of the war years had passed, and life was focused on enjoyment
new forms of entertainment
cabarets
music-halls
ballrooms
radio shows
cinema
Famous Hollywood film stars emerged
Charlie Chaplin
Rudolph Valentino
Greta Garbo
Consumerism grew again
sales of consumer goods such as cars and household appliances increased
The car industry and the development of the production of electricity were the driving forces behind the economic recovery
Consumers also bought shares in companies on the stock market because they paid large profits in a short period of time
THE WALL STREET CRASH OF 1929
The causes of the crisis
Agricultural overproduction
during the war
the American agricultural system had increased its production
his had been possible due to the cultivation of more land and the mechanisation of agriculture
After the war
European countries began to produce their own agricultural products again but the level of American agricultural production was maintained
The result was a surplus of production which caused prices to fall
The situation was made worse by the increase in unemployment due to factories closing
the demand for agricultural products decreased and farmers were ruined
Speculation on the stock market and excessive bank credit
companies and individuals bought shares in companies on the Wall Street stock market because they offered guaranteed profits
Industrial overproduction
during the First World War, American industry had increased production in order to supply Europe.
American industry did not reduce levels of production
So much products were unsold and accumulated in warehouses
After the war, European industry started to recover and European countries bought less from the US
Companies lost money and some even had to close down
Companies lost money and some even had to close down
consumption decreased
the Wall Street stock market in New York collapsed
the beginning of a major economic crisis
leading to the Great Depression of the 1930s
the increasing demand for shares led to a rise in share prices which caused stock market speculation
the share value did not reflect the real value of the companies, which were bankrupt or in financial crisis
The stock market crisis spread to banks and became a financial crisis
When companies that sold shares on the stock market began to have problems, the shareholders wanted to sell their shares
On 24 October 1929
thirteen million shares went up for sale
caused share value to fall dramatically due to oversupply
this was the Wall Street Crash
The banks collapsed and millions of citizens were ruined
the investors didn't have the money to pay back their loans and people tried to withdraw their savings from the banks to avoid losing them
THE GREAT DEPRESSION OF THE 1930S
This economic crisis led to a fall in prices (deflation) and put an end to the prosperity of the roaring twenties
The crisis spread to Europe
the United States stopped investing
U.S. asked other countries to repay the loans they had received after the war
began with the Wall Street Crash of 1929 and continued for a decade
consequences
Wages fell
unemployment increased
Millions of people were forced to live off charity and government support
The world economy was affected
because the United States reduced imports
Other countries, to save national production, adopted protectionist measures
Companies closed
Due to a fall in sales and a lack of credit
Banks collapsed because of a lack of liquidity
There was a decrease in the standard of living
generating discontent with the liberal capitalist system
most people blamed for the crisis
Attempts at a solution: the New Deal
In the United States, President Franklin Roosevelt implemented the New Deal in 1933
his was a series of economic and social measures adopted by the government in order to try to stimulate demand
Governments of all countries tried to end the crisis by state intervention in the economy
measures
to give subsidies to agricultural producers so that they could pay off their loans
to carry out public works to create employment
to limit agricultural and industrial production to prevent a fall in prices
to establish government control of the stock market to avoid the large scale sale of shares
to establish a minimum wage and provide unemployment compensation
After 1938, the United States economy began to recover, although full employment was never reached again
