chapter15-yearsofcrisis.pptVIP

The Great Depression By 1932, factory production was cut in half; Thousands of businesses failed and banks closed; 9 million people lost the money in their savings accounts from failed banks; Many farmers lost their lands because they could not make mortgage payments; In 1933, one-fourth of all American workers had no jobs; Breadlines The Great Depression Global Depression The collapse of the American economy sent shock waves around the world; US bankers demanded repayment of their overseas loans and American investors withdrew their money from Europe; The US market for European goods dropped sharply and Congress placed high tariffs (taxes) on imported goods so US dollars would stay in the US; This policy backfired – other countries imposed higher tariffs and world trade dropped by 65%! Unemployment rates soared! Depression The World Confronts Crisis Britain takes Steps to Improve its Economy; Voters elected multiparty coalition known as National Government; Passed high protective tariffs; Increased taxes Regulated the currency; Lowered interest rates to encourage industrial growth; These measure brought a slow and steady recovery; By 1937, unemployment was cut in half and production was above 1929 levels; Britain avoided political extremes and preserved democracy; France Responds to Economic Crisis France’s economy was more self-sufficient – it was heavily agricultural and less dependent on foreign; Still, by 1935, one million French workers were unemployed; This contributed to political instability – In 1933, 5 coalition governments formed and fell; Political leaders were frightened by the growth of antidemocratic forces in France and other parts of Europe; France Responds to Economic Crisis In 1936, moderates, Socialists, and Communists formed a coalition – The Popular Front; The Popular Front passed a series of reforms to help the workers; Price increases quickly offset wage gains; Unemployment remained high; France also preserved a democratic government