West+Between+Wars

=**__Part 1__**=

=****Define:****=


 * Depression**- severe despondency and dejection, typically felt over a period of timeand accompanied by feelings of hopelessness and inadequacy.


 * Collective Bargaining**- negotiation of wages and other conditions of employment by an organized body of employees.


 * Minimum**- the least or smallest amount or quantity possible, attainable, or required


 * Deficit Spending**- government spending, in excess of revenue, of funds raised by borrowing rather than from taxation.


 * Circumstance**- a fact or condition connected with or relevant to an event or action

=**Identify:**=

====**Dawes Plan**- was an attempt following World War I for the Triple Entente to collect war reparations debt from Germany.====

====**Treaty of Locarno**- were seven agreements negotiated at Locarno, Switzerland on 5 October – 16 October 1925 and formally signed in London on December 1, in which the First World War Western European Allied powers and the new states of central and Eastern Europe sought to secure the post-war territorial settlement, in return normalizing relations with defeated Germany.====

==== **Weimar Repub**- the German republic of 1919–33, so called because its constitution was drawn up at Weimar. The republic was faced with huge reparation costs deriving from the Treaty of Versailles as well as soaring inflation and high unemployment. ====

====**John Maynard Keynes**- John Maynard, 1st Baron (1883–1946), English economist. He laid the foundations of modern macroeconomics with The General Theory of Employment, Interest and Money (1936).====

==== **Franklin Delano Roosevelt**- 32nd president of the U.S. 1933–45; known as FDR. His New Deal programs of the 1930s helped to lift the U.S. out of the Great Depression, and he played an important part in Allied policy during World War II. ====

==== **New Deal**- the economic measures introduced by President Franklin D. Roosevelt in 1933 to counteract the effects of the Great Depression. It involved a massive public works program, complemented by the large-scale granting of loans, and succeeded in reducing unemployment by between 7 and 10 million. ====


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=**Major Causes(Above)**= There were several major causes of the Great Depression in the United States.

1. Unequal distribution of wealth. There was not a large middle class. While wages were rising for the majority of workers, they were not keeping pace with the increase in the cost of living or the wealth in the hands of the industrialists and others in the upper income classes.

2. There was over speculation in the Stock Market, which was not regulated. Many Americans purchased stock on credit. This was known as margin buying.

3. Increased manufacturing and agricultural output, but wages that did not keep pace for the consumers to purchase all that was produced or grown. Hence, inventories increased and agricultural income remained low.

4. Buying on credit, known in the 1920s as installment buying. People purchased things like refrigerators on time, and did not have money to pay for the product in the future, when the bills became due.

5. Federal regulations on businesses also contributed to the cause. Especially favorable to the large corporations were the taxes laws which were written to encourage business expansion.

6. Banks were permitted to speculate in land and the stock market with little government regulations.

7. High tariffs and war debts helped spread the depression world wide.

8. The Stock Market Crash of 1929 signaled the beginning of the Great Depression.

=**Questions:**=

**1 - Why was the League of Nations not very effective in maintaining peace?**
The League of Nations failed for a couple of reasons: So it quickly became obvious that the League of Nations wasn't accomplishing anything and it fell apart.
 * The United States was not part of it.
 * More importantly, the countries in the League did not take the idea of collective security seriously. When countries attacked others, nothing was done. For example, Italy attacked Ethiopia and Japan attacked China. In both cases, nothing serious was done.

===**2 - How did the crash of the U.S. stock market affect Germany and other European countries?**===

Germany's [|Weimar Republic] was hit hard by the depression, as American loans to help rebuild the German economy now stopped. Australia's extreme dependence on agricultural and industrial [|exports] meant it was one of the hardest-hit countries in the [|Western world], Because of high levels of United States investment in Latin American economies, they were severely damaged by the Depression. Within the region, [|Chile],[|Bolivia] and [|Peru] were particularly badly affected. France's relatively high degree of self-sufficiency meant the damage was considerably less than in nations like Germany. The Great Depression did not strongly affect Japan. The Japanese economy shrank by 8% during 1929–31. From roughly 1931 until 1937, the [|Netherlands] suffered a deep and exceptionally long depression. This depression was partly caused by the after-effects of the [|Stock Market Crash of 1929] in the United States, and partly by internal factors in the Netherlands.

**3 - What was the New Deal?**
The **New Deal** was a series of economic programs passed by Congress during the first term of [|Franklin D. Roosevelt], 32nd [|President of the United States]. The New Deal produced a political realignment, making the [|Democratic party] the majority, with its base in liberal ideas, big city machines, and newly empowered labor unions.