Paragraph 2.1

• Geschiedenis
• Middelbare school
• vwo
• Leerjaar 3

Chapter 2: Between the wars

2.1 Prosperity and crisis in the United States (part 1)

American influences on European society

Cultural

Political

Social

Economical

Cultural influences

Political influences

Social influences

Economical influences

At the end of this lesson...

• You will know what a consumer society is.
• You will know what the Roaring Twenties are.
• You will know how the economical crisis started.

What did we discuss in the week before the vacation?

Name two decisions in the Treaty of Versailles.

why was there a high probability that the versailles treaty would have negative consequences?

Germany: the main culprit

On 28th June 1919, the Allies signed the Treaty of Versailles. In it was decided that Germany:

• was not allowed to have an army bigger then a hundred thousand soldiers; its fleet had to be given to the Allies
  
• had to give its colonies to France and Britain; Alsace-Lorraine was returned to France
  
• had to give up ten percent of its territory
  
• had to pay for the damage, caused by the war.
  
• had to accept the full blame for WW1 (Alleinschuld)

It was mostly out of an emotion and feelings of revenge that Germany was ordered to pay 132 billion gold marks (around 380 billion euros today) as war reparations, a huge amount. The Germans were astonished that they were not allowed to participate in the meeting. As expected they were outraged when they read the treaty. They felt humiliated and refused to sign it. Eventually they agreed, but only because the Allies threatened to continue the war.

signing of the Treaty on June 18th, 1919, exactly 5 years after the assassination of the archduke Franz Ferdinand in Sarajevo

Roaring twenties

Live now, pay later

• After WW1, the USA was the wealthiest and most powerful country in the world.
• In the 1920's they became a consumer society. 

The Roaring Twenties

• A different name for the 1920's

• Many changes in the way of life

Inventions after 1900

What is a 'consumer society'?

Why is it called the 'Roaring Twenties'?

The economy collapses

• Until 1929, boundless faith in American economy.

• Halfway 1929 sales of cars and luxury goods dropped.

• Stock Market Crash = dramatic and unexpected drop in the value of stocks and shares.

Stock market crash

1929

Meristocracy

• Michael Young:
• As labourer you have the right to be rewarded!

www.volkskrant.nl

If you coudn't afford it, you could buy it on credit.

The stock market

• Farmers and companies borrowed money to invest.
• Credit was used to buy stocks on the stock market.
• The Stock market crashed on Black Thursday 1929.
• The borrowed money couldn't be paid back.
• Companies, factories and banks went bankrupt.

Why did banks and companies go bankrupt?

The Stock Market

• in 1929 the stock market crashed in the USA. 
• This did not only have consequences for the USA though...

People became unemployed

Poverty arose...

World Crisis

• Because of a world economy
• Other countries were affected, such as the Netherlands and Germany
• Countries tried to protect their own economy

The New Deal

• President Roosevelt changed politics in the USA by starting an active government intervention called the New Deal. 

He made large projects to give the people a job

What were the consequences of the stock market crash?

www.npostart.nl