This lesson contains 13 slides, with text slides and 1 video.
Items in this lesson
Chapter 2
2.4 The global economic crisis
(page 81, Free market economy
Slide 1 - Slide
At the end of this lesson...
You can explain how an economic crisis arose in the United States in 1929.
You can explain the effects of that crisis throughout the world.
You can explain what the New Deal involved.
Slide 2 - Slide
Stock exchange crash!
The prosperity in the United States came to an end
It started with buying shares in companies....
Slide 3 - Slide
Overproduction in the agriculture sector (WW1)
Much is bought on credit (debts)
Lots of trust in stocks/investments.
Black Thursday (October 24th 1929)
Companies and banks go bankrupt
Poverty
Decline in trade causes a global economic crisis
Slide 4 - Slide
Slide 5 - Video
Protectionism
The US government was hoping to protect its own economy: it would make Americans more likely to buy goods made in their own country
negative consequences for other countries: collapsing trade meant there was less demand for their products. Those countries in turn decided to protect their own economies in the same way.
An economic policy that aims to protect the national economy against competition from other countries, for instance through high import taxes.
Slide 6 - Slide
Before in Germany in 1923.....
Slide 7 - Slide
The German workers in the Rhineland go on strike
The German government supports them and decides to keep paying their wages.
