Notes Chapter 252

1
Notes Chapter 25-23

• Objective Describe the causes and effects of the
  Great Depression on European Nations

2
Problems
Notes 25-2

• wages didnt rise with the price of good s
  created inflation
• Increased unemployment (people were being
  replaced by machines)
• Overproduction of grain. (during the war US sent
  supplies to Europe now we are making too much)
  Demand falls sharply
• Economic Nationalism- establishment of protective
  tariffs and similar restrictions on imports and
  exports of goods and made it difficult for Europe
  and the US to exchange goods

3
Speculation, Panic and Crash

• Market Speculation risky investments hoping for
  a quick high profit- mostly done in the US
• Buying on the Margin You borrow money to buy
  stock using only 10 of its value- so when you
  sell, you pay what you owe and the rest is
  profit. PROBLEM! Stocks went down and investors
  had no way to pay what they owe

4
Notes 25-3Objective Describe life after WWI
France

• French Devastation after WWI
• Land had been a major battleground for WWI
• 1. Cities were destroyed
• 2. Farmland had been ruined by trenches
• 3. Agriculture and industry had been destroyed
• 4. High percentage of men in France had been
  killed in the war

• France was victorious but unstable after the war
• 1. high debts
• 2. weak industry
• 3. Inflation rose out of control
• 4. Government was overspending, which cased
  increased debt

Building the Maginot Line it was a wall of steel
and concrete that stretched 200 miles between
France and Germany to keep the Germans out of
France
5
Rebuilding of Alliances

• The rise of the Popular Front
• -caused by the scandals and Left Wing Coalition
  Radicals
• -wanted to force reforms increased pay, 40 hour
  work week, paid vacations, and banks would become
  nationalized (to be completely under government
  control.)
• Popular Front fails, France remains a democracy,
  and prices continue to rise

• Participation in the Lacarno Pact (France was a
  participant)
• 1. Any nation who signed the pact must settle
  all disputes peacefully and it guaranteed
  existing borders
• 2. An agreement for the neutrality of Belgium
• 3. It allied anyone who signed it with the
  communist government in Russia

Scandals in France led to huge riots and a big
general strike to have a republican government in
France
6
Great Britain After the War

• Economic Difficulties Money Problems
• 1. Industry and Trade suffered AFTER WWI
• 2. Unemployment rose TONS!
• 3. US and Japan took imperial markets
• 4. Had outdated machinery and factories
• 5. Established high tariffs
• 6. Had a lot of coal, but other forms of power
  are becoming available therefore the demand for
  coal in going down

• Labor Troubles (working class)
• 1. By 1921 ¼ of the population was unemployed
  (25)
• 2. Problems with Unions vs. Industrialists
• 3. Government passed anti-strike laws keeping the
  people from making changes

7
Around Europe After the War

• Ireland
• Struggle for home rule (to be governed by there
  own government not England)
• Easter Rising harsh rebellion against English
  rule that failed
• 1937 Ireland adopted their first constitution
• 1949 Independent country

• Austria Small poverty stricken nation divided
  politically
• some wanted to go back and become part of Germany
• Urban Socialists wanted the city to be
  socialized (Socialism)
• Private Armies- several wanted to take control

8
Around Europe Continued

• Hungary became a republic in 1918
• 1919 coalition government tried to make them
  communist but it fell within one year
• 1920reactionary ruler came to power but had
  little or no power

• Poland established at the end of WWI
• Started as a democracy with a constitution but
  the people were not happy so in 1926 a military
  dictatorship was established