The Global economic crisis

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• Middelbare school
• havo, vwo
• Leerjaar 3

Economic crisis 1929-1933

Situation in the US

* Free market economy

* people can buy shares in companies

* Own a small piece of a companie -> can receive a profit

* If a companies does well -> the value of the shares rise

Stock exchange crash

* 1929

* Share prices suddenly fell

* Shareholders lost confidence in the economy:

1. Farmers borrowed lots of money to expand farms -> too much food -> prices had fallen

2. Lots of Americans had bought expensive goods using borrowed money -> people became more cautions -> sales figures collapsed

Result

* 24 october 1929

* People sell their shares

* Afraid the values decreases

* Result: share prices dropped extremly

* Panic

Economic crisis

* People had bought shares with loans

* Not able to pay their debts

* Banks bankrupt

* Consumers purchased les

* Companies bankrupt

* Lots of people lost their job

Consequences in Germany

* Pay money after WOI

* Borrowed money from US

* US demanded their money back

* German companies going bankrupt

* 1932: 1 in 3 workers lost their job

The new deal

* Roosevelt new president

* measures tackling the crisis:

- Banks were supported so that they would no longer go bust

- Agriculture received subsidies for producing les

- Manufacturers had to pay their workers better

- Employment projects

 The United States 

In what year did the colonies in the US broke away?

1. 1776
2. 1774
3. 1677
4. 1874

What's a downside of the free market economy

1. No innovations
2. Les freedom
3. Poverty

What's the core value of the US?

1. Freedom
2. Equality
3. Profit

Not everyone was happy with the New Deal? Think of a reason why some people were not happy with these measures:

Sovjet-Union

Which isn't a indirect cause of the Russian Revolution

1. Lot of poverty and inquality
2. Shortages of food because of WOI
3. The Great Terror
4. Secret police took a hard line against the tsar's opponents

Lenin

Stalin

Bij wie hoort het begrip: Lenin of Stalin?

Lenin

Stalin

1 party state

Show trials

Collectivizing farms

Russian Revolution

Planned economy

Totalitarism

Proclaimed soviet Union

Lenin

* Nationalization

* State becomes owner of everything

* Farmers didn't cooperate

* Famine

Stalin

* Collectivizaton of farms

- 'Enemies of the State'

- Violence

* Planned economy

- Five-year plan

Stalin

* Dictator

* Totalitarism

= The state has total control of people's lives

* Fear

* Show trials

* People woudn't dare to revolt

Assignments

You can:

- Make the assignments of paragraph 2.4

- Make a summary

- Learn for the test