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The economy in the inter-war years, image, image - Coggle Diagram
The economy in the inter-war years
Post-war crisis
Between 1918 and 1923, Europe experienced a significant economic crisis
High levels of debt
Of loans from the United States intended to pay for the costs of war, such as food and military equipment
A shortage of products
The destruction of areas of agricultural land, factories and transport systems, and as a consequence, an increase in prices
One of the most severely affected countries was Germany
They had to suffer the crisis and at the same time, pay war reparations
As a solution to the serious economic crisis, the German government circulated large quantities of bank notes
The enormous quantity of worthless bank notes in circulation
The German people needed large amounts of money to buy basic goods, such as a loaf of bread
Hyperinflation
The suffragist movement
At the end of the war, women, who had shown that they were capable of doing the same jobs as men
Did not accept the re-establishment of their traditional social role
Groups of women who demanded the right to vote: suffrage
Started in New York and Great Britain in the second half of the 19th century,
They achieved this after the post-war period in some countries
Russia, Great Britain, Poland, the Netherlands and Austria in 1918
Germany and Belgium in 1919
Czechoslovakia and the USA in 1920
Inter-war years
During the period between the First World War and the Second World War (1918–1939)
The economies of European countries and of the United States went through various phases
Post-war crisis, recovery in the 1920s
The Wall Street Crash of 1929
The Great Depression of the 1930s
Recovery in the 1920s
The United States and Japan were the first countries to recover from the crisis
Their industries had not been devastated by war.
United States helped European countries come out of the economic crisis
In 1924, the United States applied the Dawes Plan in Germany
This was a series of economic measures which involved loans and American investment in German industry
With the aim of increasing the value of the German mark
France also agreed to abandon the occupied areas of the Ruhr in August 1925
This plan also revised and reduced war reparations payments
Roaring twenties
The United States also helped other European countries
By giving them loans and selling the consumer goods they lacked
By the mid-1920s, the world economy began to recover and grew steadily
With economic prosperity, society changed
Life was focused on enjoyment
These years were characterised by new forms of entertainment
Cabarets
Music-halls
Ballrooms
Radio shows
Cinema
Famous Hollywood film stars emerged
Greta Garbo, Charlie Chaplin and Rudolph Valentino
The Wall Street crash of 1929
In 1929, the Wall Street stock market in New York collapsed
This was the beginning of a major economic crisis, leading to the Great Depression of the 1930s
The causes of the crisis and the Wall Street Crash
Industrial overproduction
During the First World War, American industry had increased production in order to supply Europe
European industry started to recover and European countries bought less from the United States
American industry did not reduce levels of production
The result was that the number of products available was greater than the number of products that were sold
Companies lost money and some even had to close down
Agricultural overproduction
During the war, the American agricultural system had increased its production
This had been possible due to the cultivation of more land and the mechanisation of agriculture
European countries began to produce their own agricultural products again
But the level of American agricultural production was maintained
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
The increasing demand for shares led to a rise in share prices which caused stock market speculation
On 24 October 1929
Thirteen million shares went up for sale, which caused share value to fall dramatically due to oversupply.
Wall Street Crash
The great depression of 1930s
Began with the Wall Street Crash of 1929 and continued for a decade
This economic crisis led to a fall in prices (deflation) and put an end to the prosperity of the roaring twenties
Consequences
Companies closed
A fall in sales and a lack of credit. Banks collapsed because of a lack of liquidity
Wages fell
Unemployment increased. Millions of people were forced to live off charity and government support
world economy was affected
The United States reduced imports
Decrease in the standard of living
Generating discontent with the liberal capitalist system, which most people blamed for the crisis
