2. The depression of the
1930s, most commonly
referred to as the Great
Depression, was
international in scope and
not limited to the
American experience
Wake Up
Call!!!

3. It actually began in
Europe because of:
Severe damages from
World War I so
everything had to be
rebuilt.
The heavy reparations
Germany had to pay for
the war.
Germany couldn’t
repay the Allies who
needed the money to
rebuild.
How does the
Depression
Start?
Belgium 1915

5. The War’s Effect on the
Job Market
Although spending to
fund the war had nearly
bankrupted several
countries, employment
had been high because
countries were building
things for the soldiers.
As soldiers returned
home from
fighting, some soldiers
found that their bosses
had given their jobs
away. Others took their
jobs back from
replacements.

6. Unfortunately, the Allies did
not realize how important
Germany was to the
European economy.
Trade and production all
over Europe suffered due to
a weak Germany.
Remember the Allied goal was to
punish Germany? They
succeeded!
Reparations took what little
money Germany had available.
Also, in the Treaty of
Versailles, they had been forced
to give up valuable land, willed
with natural resources and
factories.
Germany hit the
hardest!

7. So Germany
continued printing
more money with no
real value, creating
hyperinflation.
In 1923, France took
Germany’s major
industrial region, the
Ruhr Valley, as
further payment of
the war debt.
The French Strike Again!

8. Due to the economic
problems and their need to
rebuild, European countries
stopped investing and
buying from other countries
(including us). This hurt
those countries’
economies.
What about the
United States?