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THE ECONOMY IN THE INTER-WAR YEARS, image, image, image, image, image,…
THE ECONOMY IN THE INTER-WAR YEARS
POST WAR CRISIS
Characteristics
high levels of debt
shortage of products
increase of prices
Germany
had to pay war reparations
circulated lots of bank notes
suffered hyperinflation
France occupied the Ruhr
(1923)
Suffragist movement
women wanted their right to vote
women gained right to vote
Germany and Belgium
(1919)
Czechoslovakia and USA
(1920)
Russia, UK, Poland, Austria and Netherlands
(1918)
WALL STREET CRASH AND THE GREAT DEPRESSION
Wall Street crash
causes
industrial overproduction
more supply than demand
companies lost money because they didn't sell
agricultural overproduction
production increased during war
that production was maintained after war
there was surplus
prices fell
Speculation on the stock market
this shares guaranteed profit
prosperity made people buy shares
demand for shares increased its price
shares
1- when companies had problems
2- shareholders wanted to sell their shares
3- thirteen million shares went for sale
4- caused oversupply
Great depression of the 1930s
Consequences
companies closed
wages fell
economy worldwide was affected
decrease in standard living
New Deal
President Roosevelt proposed it in 1933
measures
give subsidies to agricultural producers
creation of public works
limit agricultural and industrial production
control of the stock market
establishment of a minimum wage
RECOVERY IN THE 1920s
Dawes plan
(Germany)
American investment
American loans
France abandoned the Ruhr
(1925)
German economy improved
Roaring twenties
world's economy improved
consumerism increased
industries developed
