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THE ECONOMY IN THE INTER-WAR YEARS, The wall street crash of 1929, image,…
THE ECONOMY IN THE INTER-WAR YEARS
During the period
between
the first world war
the second world war
Post-war crisis
characterised by
high levels of debt
a shortage of products
One of the most severely affected countries was Germany
In 1923
France realised that it would not receive the reparations it needed from Germany to help rebuild its economy
France decided
to occupy the richest
most industrialised area of Germany, the Ruhr
Recovery in the 1920s
In 1924
United States
applied the Dawes Plan in Germany
this was
a series of economic measures
which
involved loans
American investment in German industry
by the mid-1920s
the world economy began to recover and grew steadily
It was
a prosperous time
known as the roaring twenties'
From 1925 on
Germany's economy began to recover
It was able to pay reparations to the victorious European countries
In 1929
the Wall Street stock market in New York collapsed
This was the beginning of a major economic crisis
Industrial overproduction
American industry had increased production in order to supply Europe
American industry did not reduce levels of production
companies
lost money
some even had to close down
Agricultural overproduction
American agricultural system had increased its production
this
had been possible due to the cultivation of more land
the mechanisation of agriculture
The great depression of the 1930s
began with the Wall Street Crash of 1929
consequences
Wages fell and unemployment increased
The world economy was affected because the United States reduced imports
Companies closed
due to a fall in sales
a lack of credit
was a decrease in the standard of living
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
The wall street crash of 1929
