The Victorious Democracies The Interwar Period. The United States Isolationism vs. Interventalism...
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Transcript of The Victorious Democracies The Interwar Period. The United States Isolationism vs. Interventalism...
The United StatesIsolationism vs. Interventalism
Avoiding future wars International Disarmament
Conference (1922)Kellogg – Briand Pact (1928)
The Undoing of the US
1920’s – US the world powerTechnology boom, Wall
Street bubble
1930’s – Crash, economic ruinFDR’s New Deal
(socialism in US)
What is a Depression?
A severe economic downturnHigh unemploymentLow GDP (sum of all
goods and services produced by a nation)Consumer spending,
investment spending, government spending, net exports
The Reality of the Great Depression
Hundreds of banks close which wipes out billions in savings
In 1933364,000 farms went
bankruptGDP decreased by
40%Unemployment Rate
= 25%
Stock Market CrashMany investors
margin buying
Bubble developed
Panic sell-off wiped out fortunes
29 October 1929The Dow fell 40%
and $30,000,000,000 lost
Banks Runs – banks out of money because of margin loans – banks fail
The Problem Feeds Itself
Products such as cars and ovens are durable goods (they last a long time)
As factories started to have a surplus of products, they started to lay off workers
National governments begin to raise tariffs on foreign goods to protect national production
Agricultural Overproduction
Farmers try to produce more to lower cost and spark demandNothing but huge surpluses of crops, not worth the
money even to sell
Farmers lost huge amounts of money and some even burned their crops and poured out milk EVEN AS PEOPLE STARVED!
The Floundering VictorsEngland
Unemployment, war debts, Britain failing
Strikes (army sent in to clear, end up running industries)
Socialist Ramsey MacDonald PM
Many fear this is the start of communism…
EnglandThe Labour Party gains
strength in gov’t, begins to move the country toward socialism
The “Irish Question”?Rise of the IRA1922 – moderates in
Ireland and Britain reached an agreement Self-governing Irish Free
State