Consequences of the Great Depression

Which of the following was NOT a cause of the Great Depression?

• Rich people got richer, while poor people got poorer (Uneven distribution of wealth)

• American overproduction of goods (cars, radios,vacuum cleaners, etc.)

• Global demand for manufactured good fell during the late '20s and '30s.

• Global demand for manufactured goods continued to skyrocket throughout the '20s and '30s.

What is the "Stock Market?"

• A way to buy & sell livestock like pigs, cattle, and turkeys

• A way to buy & sell products for retailers at a Wholesale (reduced) price

• A way to purchase a part of a company and share in its profits... or losses

• A way to buy and sell real estate and other durable goods for investment purposes

What happened to make the stock market crash in 1929?

• Too many people were investing in stocks, driving the prices too high

• As demand for products fell, companies began losing money

• People borrowed money to invest in stocks, but could not repay their loans when prices started to fall.

• All of these contributed to the stock market crash of 1929.

Why did the crash of the NYSE (New York's stock market) cause the global Great Depression?

• People could not repay their debts when the price of stocks fell

• Companies lost money when the prices of their stocks fell.

• The US had to stop sending aid money to rebuild Europe because they had to help their own country.

• All of these results caused the global Great Depression.

What was "The New Deal?"

• Adolph Hitler's plan to rebuild Germany and control Europe

• Benito Mussolini's plan to create a new Roman Empire

• President Roosevelt's plan to rebuild the American economy

• All of these were aspects of the New Deal

How did the Global Great Depression impact countries like Italy and Germany?

• German industry was able to increase manufacturing to replace America's failed economy, leading to a rise in the popularity of Communism.

• Germans had their faith in the Weimar Republic restored when they saw the failures of American industry, and rejected radical ideas like Communism and Fascism.

• Fascist leaders such as Benito Mussolini and Adolph Hitler began to gain followers from those most impacted by the Depression.

• There was no real impact on Italy, as they had focused on peace and isolated themselves from the more warlike United States.

What was the impact of the Great Depression on France?

• The French were affected very little because they had more economic equality, and gave workers more rights.

• French people worked to reform its economy by abolishing taxes, which quickly ended the Depression there

• The French government took a very conservative approach to their economy and wealth from the upper classes "trickled down" to the poor.

• The Great Depression hit France the hardest, due to the popularity of Socialism & Communism.

What was the impact of the Great Depression on England?

• England created their own "New Deal" which ended the Great Depression quickly

• England enacted a conservative approach, allowing their country to recover in only a few months

• The failure of Parliament to use deficit spending (going into debt) to help their people made the Depression worse.

• There was no impact because England had isolated themselves from the European economy.