2.3: The Great Depression

• History
• Middelbare school
• havo, vwo
• Leerjaar 3

2.3: The Great Depression

AGE 9. The Time of World Wars

Retrieval questions

When did the Weimar Republic start?

What happened to money (inflation)?

What did Hitler try to do in 1923?

Why did people lose trust in democracy?

What you will learn in 

this lesson

• What caused the Great Depression in the USA
• Which two methods were implemented to recover from the Great Depression 
• What the New Deal was
• How the economic situation in the U.S. affected Germany

Have you ever heard of the Great Depression of 1929?

No

Maybe

Yes

Goals for this lesson

At the end of this lesson you can...

• explain the Wall Street Crash.
• Show the consequences of the Wall Street Crash using sources.
• explain how the Wall Street Crash led to the growth of anti-democracy parties in Germany.

Five terms to understand the crash

• Stock
• Credit
• Mortgage
• Bankrupt
• Dole 

Five terms to understand the crash

• Stock - the shares in the owning of a business or company.
• Credit - the right to buy things at the present time and not pay until later.
• Mortgage - A mortgage is a special type of loan used to buy a house.
• Bankrupt - to not have enough money to pay debts.
• Dole - a distribution of food, money, or the like to needy people.

people in this lesson

Herbert Hoover

president

1929 -1933

Franklin D Roosevelt

president

1933 - 1945

Important dates in this lesson:

1924: Dawes Plan

1929: Black Thursday, the start of Great depression

1933: Roosevelt starts New Deal

Key events:

the stock market crash

global economic impact

Hoovervilles

 the New Deal

Dawes Plan

household appliances

If the economy is collapsing, what should a president do?

00:50

Mention 4 inventions that became available to Americans in the 1920s

01:39

How were Americans who could not afford these luxury items persuaded to buy them anyway?

02:15

"buying on margin" meant that you could even buy stocks on credit

1. TRUE
2. FALSE
3. don't click C

03:00

What were the perks and dangers of speculating
on the stock market?

03:16

A. What happened when the stock market fell?
B. And what happened to the value of stocks because of this?

04:00

A. When banks closed what did many Americans want to do quickly?
B. hat was the result of this for banks?

04:41

people can not buy things (1)

stores do not order from factories (2)

factories do not get orders (3)

people lose their jobs (4)

stores go out of business (5)

Why did the Depression become a cycle?

Herbert Hoover

• Republican (1929 - 1933)

• Solution:
• government should not interfere in the economy.

Dealing with the Great Depression

Franklin D. Roosevelt

• Democrat (1933 - 1945)

• Solution:
• government must interfere in the economy: the NEW DEAL

Hoovervilles

The New Deal

How does this influence Germany?

But then the US economy loses 30 $ billion in one day

Germany

• The USA didn't want to loan money to Germany anymore.
• -> German economy suffered and collapsed.
• Germany entered the Great Depression as well. 

The causality of Hitler's popularity and the German economy

Economic situation in Germany

1923: hyper-inflation in Germany

Germans' 

faith in the Weimar government

Hitler's popularity

1924 - 1929. Loans from the Dawes Plan

1929 - 1933. Great Depression

Drag the thumbs to their correct place. One thumb remains: either E or J.

How did the economic situation in the U.S. affected the economical and political situation in Germany?
Read page 48 'Crisis in Germany'

Homework 

ex. 1, 2, 3, 4, 7 and 9 page 46

What can you conclude about the relation between the economy and extremist parties?