The Great Depresstion Zane HAstings

With Germany on the side of Austria-Hungry there were bound to world repercussions. Since a majority of the fighting took place in Northern France, Germany would owe the the most to them. This was a really big war for every body this war had almost 4.5 million casualties.

The German War Reparations had a great affect on the economy. One US dollar in 1923 was the same as 4.2 trillion German Marks. They were so worthless the kids used them to make kites and used Marks were also used as wallpaper.

Children used money as kites
With German Government printing more money to pay, the reparation rate sky rocketed. With daily goods having to cost way more than it should company's would not keep a high amount of workers because their goods were not being bought.
a political cartoon depicting the struggles during the depresstion

With more and more need for basic things producers were having an overproduction problem. Since more and more stuff was need but at a higher price not as many people were buying their goods which spawned a under consumption problem.

Most people believe that when the stock market crashed in 1929 that is when the Great depression started when actually it was more of the nail in the coffin for the great depression. Most people who were unemployed were dipping into there savings and when the stock market crashed people lost all of there saving very quickly

newspaper of the initial crash
A political comic showing how the stock market is

Many of the banks current loans out to the people were failing. The ability to issue new loans were unmanageable due to the people wanting the loans were ineligible or unable to pay back the loans. A banks ability to loan out money is through the deposits of the people and since the people were out of work, no deposits were coming for the money to loan out.

A cartoon showing the banks mostly operate

The effects in the U.S were catastrophic. A lot of banks foreclosed and collapsed people were left unemployed and with the stock market crash every one lost all their savings. Farmers had to sell their farms and all of their possessions because that was the only way they could get payed.

The effects in Germany were also dreadful, because the German Mark was basically worthless at the time that translated into daily life. An average German citizen would have to save up for weeks and with hyperinflation of their currency a loaf of bread could cost up to thousands of dollars.

In Holland during the great depression was better off than most countries. For Holland it happened much later in to depression than most places. It also didn't take as much of a toll in Holland because of how the government controlled it. The biggest form of protest In Holland was not paying rent as a tenant. Strikes were not popular in Holland.

When it came time for a election Franklin Delano Roosevelt proposed a new deal to take america out of the depression and promised reform. And once one country was out of the depression that would boost all the other countries and help the world.



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