The Unraveling of Peace and the Great Depression 1

What was the “Lost Generation” after World War I?

A group of people who felt disillusioned after WWI. Many soldiers went to war expecting glory but returned traumatized

How did World War I affect the average man psychologically?

Many men went to war to prove their masculinity but returned emotionally damaged

What was the Allied Reparations Commission (1921)?

A group that decided how much Germany had to pay after WWI. It set reparations at about 132 billion gold marks.

What limits were placed on German reparations payments?

Annual payments were not supposed to exceed about 1% of Germany’s GDP (income)

Why did France feel “embittered and alone” after WWI?

France felt unsafe because promised alliances (like with the U.S. and Britain) didn’t fully protect them

What was Article 10 of the Treaty of Versailles supposed to do?

It required League of Nations members to protect each other

Why did France adopt a policy of coercion toward Germany?

France believed the only way to ensure security and reparations was to pressure and threaten Germany.

What was the Reparation Crisis of 1922?

Germany refused or struggled to pay reparations

What happened in the Ruhr Valley in 1923?

France invaded Germany’s industrial Ruhr region to force reparations payments.

What was Germany’s “passive resistance” during the Ruhr occupation?

German workers refused to work

Why did hyperinflation occur in Germany?

The government printed too much money to support striking workers

What was the Dawes Plan (1924)?

A U.S. plan that reduced German payments and loaned money to Germany to stabilize its economy.

How did the Dawes Plan create a “circular flow” of money?

The U.S. loaned money to Germany → Germany paid reparations to France/Britain → those countries repaid debts to the U.S.

Why did the Dawes Plan weaken the Treaty of Versailles?

It reduced Germany’s punishment and showed that the U.S. was asserting “fake hegenomy”

What was the “Spirit of Locarno”?

A period of hope and cooperation in Europe during the mid-1920s

Who was Gustav Stresemann and why was he important?

A German leader who worked to stabilize Germany’s economy and improve relations with other countries.

What was the Locarno Pact (1925)?

An agreement where Germany

What did countries agree to do in the Locarno Pact?

Respect borders and defend each other if one was attacked.

What was the Kellogg-Briand Pact (1928)?

An agreement where countries promised not to use war to solve problems

Why was the Kellogg-Briand Pact ineffective?

It outlawed war but didn’t include consequences

Why did the Geneva Disarmament Conference fail (1932–1933)?

Countries disagreed on reducing weapons

How did the Spirit of Locarno actually weaken Europe?

It made countries overly optimistic and blind to real dangers

What long-term economic problem came from the Second Industrial Revolution?

Factories could produce more goods than people could buy

What is a supply-driven economy?

An economy focused on producing goods

What is market saturation?

When too many products are available and not enough people want to buy them.

What was the “production bubble”?

Overproduction combined with weak demand

Why were the U.S. and Japan important before the Great Depression?

They became leading industrial producers

What was the post-WWI economic boom?

A time when economies grew quickly

How did the Dawes Plan contribute to future problems?

It made Europe dependent on U.S. loans

What was the American agricultural crisis of the 1920s?

Farmers overproduced crops

How did falling demand affect the U.S. economy?

Less demand meant businesses earned less

How did protective tariffs affect global trade?

They reduced international trade

What was the British General Strike of 1926?

A major labor strike where workers protested poor conditions

How did consumer credit contribute to the Great Depression?

People bought goods with borrowed money

What does “buying stocks on margin” mean?

Buying stocks with borrowed money

Why was buying stocks on margin dangerous?

If stock prices fell

What was the Stock Market Crash of 1929?

A sudden collapse in stock prices in October 1929

Why is the crash called a “correction”?

It adjusted inflated stock prices

What was the “perfect storm” that caused the Great Depression?

Overproduction

Why did the Weimar Republic collapse?

Economic crisis

What was the social impact of the Great Depression?

Massive unemployment

How did unemployment affect society?

Banks closed

How did the Great Depression create a two-class system?

A divide between the wealthy who survived and the poor who struggled.

How did women’s roles change during the Depression?

Women sought jobs as men returned from war

Why did political polarization increase?

People turned to extreme ideologies like fascism and communism for solutions.

What is Keynesian economics?

The idea that governments should increase spending to boost demand and fix economic downturns.

Why did the Great Depression show a demand problem?

There were enough goods

Why did people begin trusting governments more?

They expected governments to solve economic problems and provide stability.

Why did fascism rise in Italy and Germany?

Economic crisis and political instability made people support strong

How do totalitarian regimes control the economy?

Governments direct production and decide what factories produce.

Why did Eastern European states struggle during the Depression?

Their economies collapsed and they lacked strong governments to respond effectively.

How did Great Britain respond to the Great Depression politically?

It formed a National Government

Who was Ramsay MacDonald?

Leader of the Labour Party who became head of Britain’s National Government.

Who was Stanley Baldwin?

A Conservative leader who supported the National Government.

How did British politics change during the Depression?

Political divisions were set aside to deal with the crisis.

What was France’s Popular Front?

A left-wing coalition government formed to address economic and social problems.

Who was Léon Blum?

Leader of France’s Popular Front who promised reforms for workers.

Why did the Popular Front struggle?

Economic problems and political conflict made it unstable.

What happened to France politically after the Popular Front?

The government weakened

Why did some French citizens later collaborate with Nazi Germany?

Distrust in their own government and instability made some people accept outside control.