Historical context of World War I- World War I took place between 1914 and 1918. At the time, the English-speaking world knew it as the “Great War”. Later it was re named was World War 1. Many countries debated over strategies and alliances who they wanted to fight the war with. World War I led almost directly to World War II and set the stage for many other important events in the twentieth century. Around 9 million soldiers died during the war but in total counting battle casualties, civilian deaths, and victims of disease, the loss of life worldwide was around 40 million.The aftermath of World War I also marked the practical end of monarchy on the continent and of European colonialism throughout the rest of the world.
German war reparations- The 1919 Treaty of Versailles and the 1921 London Schedule of Payments required Germany to pay 132 billion gold marks in reparations to cover civilian damage caused during the war.That's 33 billion in US dollars. They made them pay that much money because of all the damage Germany did they were responsible for it. Germany paid for the reparations from 1919 until Hitler came into power than Germany stopped paying the reparations. After Hitler died Germany started paying the reparations again and didn’t pay it off until 2010.
Inflation and unemployment- During the Great Depression from 1930 to 1931 job percentage dropped 7% global. By 1932 it was down to 10%. By 1933 25% of people in the world did not have jobs. That was the biggest dept ever. About 52,490,000 million people didn’t have jobs in 1934. The Great Depression didn’t fully restore itself completely 100% until after World War in 1945
Overproduction and underconsumption- The production line produced a lot more goods, but people couldn’t afford to buy them. The production kept going but nobody had money to buy them. Companies started to lose money and started selling there product for cheaper. Like farmers sold lettuce for 1$ but because nobody had money to buy it they had to sell it for 30 cents. So it took a farmer to sell 3 lettuce heads to make his money back.
Stock market crash -New York in 1929, Banks and investment companies had optimism about the booming U.S. economy showed in soaring prices for stocks. Many people started to buy stocks on the margin to get into the boom. When they did that they had to get loans from the stockbroker. It was working perfectly but if the stocks fell just a little the men wouldn’t be able to pay back the stockbroker. In September 1929 some people had a prediction that the if they sold their stocks the prices would go down. Soon after in October everyone began to sell their own stocks and soon enough nobody wanted to buy any. On October 29th 16 million dollars worth of stocks were sold and right than the market crashed.
Banks collapse- Many banks gave loans out to farmers who used the money to buy new machines. But when the crops of the farmers were not being bought, the farmers had no money to pay back the banks. That started the banks to become bankrupt. Soon after people started withdrawing their savings so the bank wouldn’t steal there money. With the bank not getting any money back from their loans they were shutting down. By 1933, the money from 9 million savings accounts had vanished.
Effects ion the US, Germany & Italy- The Great Depression of the 1930s started with the stock market crash of October 1929. The Great Depression began in August 1929, when the United States economy first went into an economic recession. The Great Depression lasted in the U.S from 1929 - 1939... The economic situation in Germany briefly improved between 1924-1929. However,Germany in the 1920s remained politically and economically unstable. By 1932 unemployment in Germany reached more than six million. Despite the partial recovery from 1924 to 1929. The Wall Street Crash jumped Germany quickly back into crisis... Italy wasn’t affected by the Great Depression as much as any other country. Mussolini was Italy's leader and he attempted to make Italy self-sufficient early on. When Mussolini came into power in the early 1920’s after WWI, the economy in Italy was weak.
The New Deal- By 1932, at least one-quarter of the American workforce was unemployed during the Great Depression. When President Franklin Roosevelt took office in 1933, he acted swiftly to try and stabilize the economy and provide jobs and relief to those who were suffering. Roosevelt worked to create numerous programs through his New Deal to help those affected worst by the Depression. Roosevelt created 10 programs that helped everyone going through hard times during the Depression. ( CCC, CWA, FHA, FSA, HOLC, NIRA, PWA, SSA, TVA, WPA)
WPA one of the programs Roosevelt created standing for Work Pays America.