Following the conclusion of World War I, countries in Europe struggled to rebuild their war-shambled economies and societies. On the other hand, WWI had seemingly ushered in a new era of prosperity for the Americans. The 1920s, better known as “The Roaring Twenties,” transformed and shaped modern-day American society. However, under the glittering facade of prosperity and fortune, the US economy began to decline as a series of internal failures threatened to undermine the nation. While many believe that the unprecedented crash of the stock market on October 29, 1920, better known as Black Tuesday, was the cause of the dramatic economic downturn of the century, long-term causes contributed highly to the impending catastrophe.
This lead to the government having to print more, and more money and that started a chain reaction. When so much money is in circulation, it loses its value. Now people were losing their lifetime savings. Surely this led to anger and indignation from loads of Germans. Even in this case though, there were some people who were satisficed.
The speeches, both were given around the same era, only three years apart. In the late nineteenth century, Americans began to feel dissatisfied with the negative impacts the technological boom made (“New Nationalism vs. New). Technology has been changing rapidly, and it altered the lives of many people, and some people believed that the society and the economy had a lot to catch up (“New Nationalism vs. New). Two presidents, Roosevelt and Wilson both gave a persuasive speech trying to make a change during the Progressive Movement (B&N). They both agree that the current laws were not doing well in controlling the big businesses and that changes need to be made immediately
Germany owed an abundant amount of money to the Allies, “[a] contracting 21.5 billion RM in foreign debts…”1 The reparations due caused a state of hyperinflation within Germany which also produced many to lose their jobs and savings because of the collapsing economy. As the economy continued to collapse, the Third Reich started to materialize, however, in the beginning, the new parliament too had to deal with the ensuing debt. “The Third Reich inherited from the Weimar Republic a chronically weak balance of payments that severely limited its freedom of maneuver. The First World War had stripped Germany of its foreign capital assets and replaced them with the liability of reparations.”2 It is clear that the effect of the reparations due to the Allies had a tremendous effect on the economy, which in turn would directly affect the people of Germany as
Germany went through a great depression, the government tried to make more money to make the depression go away but this was the worst thing the German government could have done. This caused hyper-inflation. The Treaty of Versailles hurt Germany significantly by hurting their armed forces limiting their army to 100,000 men, hurt their economy and industry by losing the Saar region and Prussia losing fertile farming land due to the agreement of the Treaty of Versailles, along with the other major impacting factors Germany had Kaiser and Germany had to pay approximately 6,600 million pounds.
Another of the requirements of the Treaty of Versailles was the economic requirements which put strain on Germany 's already stressed economy. During the war they had limited ability to import and export industrial goods that put pressure on their economy. Germany had offered war bonds to the public to be able to finance war expenses,
Germany after World War 1 would never be the same. Germany lost World War and resulted in their country beginning to fall apart mostly impacting the economy. Germany was angry and embarrassed having lost the war but what impacted them the most was the terms of the Treaty of Versailles that destroyed Germany’s economy. The Treaty of Versailles imposed reparations from the war leaving Germany with huge debts. “The situation was made worse by economic problems created by crippling war debts,the burden of having to pay reparations, and high unemployment.” The Treaty of Versailles said that Germany must pay reparations to the other countries which left them in debt because Germany no longer had any money and it eventually led them into hyperinflation
Socially This led to them doubting the ability of the Weimar Republic Government’s ability to run a country later seen in the public fury and anti war sentiment after the Reichstag fire, the Nazi party won 288 seats and over 17 million votes after the fire. ”Many blamed the Weimar Republic. This was made apparent when political parties on both right and left wanting to disband the Republic altogether made any democratic majority in Parliament impossible.” The Wall Street Crash caused unemloyment to rise and a demand of domestic goods fell as people could not afford to buy things, so unemployment rose further. This created another vicious circle and undid Stresseman’s hard
And being that the farmers make up to 1/3 of the nation in the 1930’s, their decrease in export and lack of income had a big severe effect on the nation’s economy. However, the president of the United States at the start of the great depression, was Herbert Hoover. Hoover took the presidential office in 1929, his believes and words to the people of the Unites State was that, the economy will recover. Though the situation of the economy was very bad and heart breaking. He believe that the economy will turn around and become good.
Also took away from the essential market from European and Latin American countries . Many people in these countries lost their jobs , as factories were not able to sell products to the United States , farmers raised their tariffs , and excluding American manufactured , farm products from the foreign market . Wilson Believed in low tariffs , had reduced to increase them and the demand was growing for higher tariffs . The nation Europe had have accumulated huge debts during World War One and borrowed massive amount of money from the United States to buy war goods .Around 1918 the total amount owed to the U.S. was 10 billion dollars . The United States lowered interest rate on loans .Europeans faced difficulties in repaying and the high tariffs in the U.S. prevented Europeans from earning the dollars they needed to pay off the loans
It is no secret that the Great Depression radically impacted the lives of those who lived in the United States in the 1930’s. The depression began in 1929, and continued to worsen until 1933 where the employment rate was over 20% (Hubard and O’brien). By the 2000’s economists believed it to be very unlikely that the U.S Economy would ever plummet in the same way that it did during the Great Depression but in 2008 the United States experienced its greatest economic crisis since the 1930’s. The subprime mortgage lending and the bursting of the housing bubble brought on the 2008 financial crisis. This resulted in long-lasting effects that have shaped the economic world we see today (White).
Because of this increase in money production, the countries were brought into periods of inflation. This hurt the economy of the United States because the United States could not perform affairs with the allied countries because of their debts. During the war, the United States spent a lot of money because of the necessity of new weapons and machinery in fighting. Since the major industries that were needed during the war were now insufficient, many Americans were now out of jobs. These debts and unemployment rates brought about the stock market crash of 1929.
Impact of the Great Depression The Forgotten Man: A New History of the Great Depression, written by Amity Shlaes, gives a lengthy detail of the Great Depression. According to her viewpoint the government handled the situation of the economic crisis very poorly, which led to the Great Depression lasting longer than it suppose to. In this book, Shlaes wrote about observed action taken by Calvin Coolidge, Herbert Hoover and Franklin D. Roosevelt. She gave a detail of the years from 1927 to 1940 and in the beginning of every chapter she mentioned the unemployment rate and the average of Dew Jones Industry. According to Shleas, the Great Depression had major impacts on America life, American values and American Government.
The average person did not have the money to buy all the needs and wants desired. The economy started to turn into an unstable one, due to the amount of money owed. During the 1920’s, it was very popular for people to purchase an item and pay it off at a later date. Furthermore, the government enforced the Eighteenth Amendment of the Constitution,
Bergin notes that during this time of hyperinflation, “… people needed enormous quantities of bills merely to buy a loaf of bread or a glass of beer” (45). By the end of the year, the economy became stable again with currency reform but before the end of the decade Germany would have felt more economic problems. When the US stock market crashed in 1929, the impact was felt all around the world. In Germany, many farmers were dealing with decreasing commodity prices and an ever-shirking market (Bergen, 49). At this time, there must have been some people in the government who were terrified that what happened in 1923 would occur again sending Germany spiraling down into another time of massive inflation and great poverty.