0529_wh09MODte_ch16s02_s.fm Page 529 Thursday, 21, WH07MOD_se_CH16_s02_s.fm Page 529 Monday, January 29, 2007 June 2:16 PM 2007 3:14 PM Tin cup WITNESS HISTORY 2 AUDIO SECTION Brother, Can You Spare a Dime? In the early 1930s, a worldwide economic depression threw thousands out of work and into lives of poverty. The song below summed up the mood of the time: They used to tell me I was building a dream “With peace and glory ahead— Why should I be standing in line, Just waiting for bread? Once I built a railroad, I made it run, Made it race against time. Once I built a railroad, now it’s done— Brother, can you spare a dime? ” — from the song “Brother, Can You Spare a Dime?,” lyrics by E.Y. “Yip” Harburg & Jay Gorney. Published by Glocca Morra Music (ASCAP) & Gorney Music (ASCAP). Administered by Next Decade Entertainment, Inc. All rights reserved. Used by permission. Men eating at a soup kitchen during the Great Depression Objectives As you teach this section, keep students focused on the following objectives to help them answer the Section Focus Question and master core content. ■ Summarize the domestic and foreign policy issues Europe faced after World War I. ■ Compare the postwar economic situations in Britain, France and the United States. ■ Describe how the Great Depression began and spread and how Britain, France, and the United States tried to address it. Focus Question What political and economic challenges did the leading democracies face in the 1920s and 1930s? The Western Democracies Stumble Objectives • Summarize the domestic and foreign policy issues Europe faced after World War I. • Compare the postwar economic situations in Britain, France, and the United States. • Describe how the Great Depression began and spread and how Britain, France, and the United States tried to address it. finance Federal Reserve Great Depression Franklin D. Roosevelt New Deal Reading Skill: Identify Main Ideas Record main ideas from the first part of this section in a table like the one below. Postwar Issues Country Politics Foreign Policy Prepare to Read Build Background Knowledge Set a Purpose ■ Economics At first, the most pressing issues were finding jobs for returning veterans and rebuilding war-ravaged lands. Economic problems fed social unrest and made radical ideas more popular. Party Struggles in Britain In Britain during the 1920s, the Labour party surpassed the Liberal party in strength. The Labour party gained support among workers by promoting a gradual move toward socialism. The Liberal party passed some social legislation, but it traditionally represented middle-class business interests. As the Liberal party faltered, the middle class began to back the Conservative party, joining the upper class, professionals, and farmers. With this support, the Conservative party held power during much of 1920s. After a massive strike of over three million workers in 1926, Conservatives passed legislation limiting the power of workers to strike. affluent, p. 532 WITNESS HISTORY Read the selection aloud or play the audio. AUDIO Witness History Audio CD, Brother, Can You Spare a Dime? ■ Focus Point out the Section Focus Question and write it on the board. Tell students to refer to this question as they read. (Answer appears with Section 2 Assessment answers.) ■ Preview Have students preview the Section Objectives and the list of Terms, People, and Places. ■ Reading Skill Have students use the Reading Strategy: Identify Main Ideas worksheet. Use the information below and the following resources to teach the high-use words from this section. Teaching Resources, Unit 4, p. 49; Teaching Resources, Skills Handbook, p. 3 Definitions and Sample Sentences vt. to put down by force, subdue The police suppressed the protestors after violence erupted. adj. rich, wealthy It was an affluent neighborhood with several mansions, and our modest house looked out of place. L3 Ask How would you paraphrase the song? (The singer had been promised peace and glory and had helped build a railroad, but now he was poor and depended on charity for food.) Vocabulary Builder High-Use Words suppress, p. 530 L3 Remind students that after World War I, diplomats wanted to ensure peace. Have students predict the foreign policy issues that Europe might face in the 1920s. Politics in the Postwar World Terms, People, and Places Maginot Line Kellogg-Briand Pact disarmament general strike overproduction In 1919, the three Western democracies—Britain, France, and the United States—appeared powerful. They had ruled the Paris Peace Conference and boosted hopes for democracy among the new nations of Eastern Europe. Beneath the surface, however, postwar Europe faced grave problems. To make matters worse, many members of the younger generation who might have become the next great leaders had been killed in the war. 2 Step-by-Step Instruction Teaching Resources, Unit 4, p. 50 ■ Have students read this section using the Structured Read Aloud (TE, p. T20). As they read, have students fill in the table identifying postwar issues. Reading and Note Taking Study Guide, p. 171 Chapter 16 Section 2 529 wh07_te_ch16_s02_MOD_s.fm Page 530 Friday, March 9, 2007 7:01 PM wh07_se_ch28_s02_s.fm Page 530 Wednesday, October 26, 2005 11:32 AM Teach Politics in the Postwar World L3 Instruct ■ Introduce: Vocabulary Builder Have students read the Vocabulary Builder term and definition. Then have them look at the image on this page. Ask them to predict what group would be suppressed by the British. (the Irish) ■ Teach Compare unrest in Britain, France, and the United States in the 1920s. Ask What problems did France and Britain share? (disagreements between parties) What caused unrest in the United States? (Fear of radicals led to the Red Scare.) ■ Quick Activity Have students reread the first sentence after the heading France’s Troubled Peace: “Like Britain, France emerged from World War I both a victor and a loser.” Ask them to explain the meaning of this sentence. Independent Practice Viewpoints To help students better understand the ongoing debate between national security and civil liberties, have them read the selection The Red Scare and complete the worksheet. Conic Projection 0 50 100 mi 0 Northern Ireland (U.K.) 50 100 km Atlantic Ocean Irish Sea Irish Free State N W Celtic Sea E S The Irish Resist Members of the Irish Republican Army prepare to resist the British occupation of Dublin in 1921 by erecting a barbed wire barricade. The Irish Free State, established in 1922, was a compromise between the opposing sides, but peace was short-lived. Irish Independence at Last Britain still faced the “Irish question.” In 1914, Parliament passed a home-rule bill that was shelved when the war began. On Easter 1916, a small group of militant Irish nationalists launched a revolt against British rule. Although the Easter Rising was quickly suppressed, it stirred wider support for the Irish cause. When Parliament again failed to grant home rule in 1919, members of the Irish Republican Army (IRA) began a guerrilla war against British forces and their supporters. In 1922, moderates in Ireland and Britain reached an agreement. Most of Ireland became the self-governing Irish Free State. The largely Protestant northern counties remained under British rule. However, the IRA and others fought for decades against the division. Vocabulary Builder France’s Troubled Peace Like Britain, France emerged from World War I both a victor and a loser. Political divisions and financial scandals plagued the government of the Third Republic. Several parties—from conservatives to communists—competed for power. The parties differed on many issues, including how to get reparations payments from Germany. A series of quickly changing coalition governments ruled France. suppressed—(suh PRESD) vt. put down by force, subdued “The Red Scare” and Isolationism in the United States In contrast, the United States emerged from World War I in good shape. A late entrant into the war, it had suffered relatively few casualties and little loss of property. However, the United States did experience some domestic unrest. Fear of radicals and the Bolshevik Revolution in Russia set off a “Red Scare” in 1919 and 1920. Police rounded up suspected foreignborn radicals, and a number were expelled from the United States. The “Red Scare” fed growing demands to limit immigration. Millions of immigrants from southern and eastern Europe had poured into the United States between 1890 and 1914. Some native-born Americans sought to exclude these newcomers, whose cultures differed from those of earlier settlers from northern Europe. In response, Congress passed laws limiting immigration from Europe. Earlier laws had already excluded or limited Chinese and Japanese immigration. Teaching Resources, Unit 4, p. 52 Monitor Progress As students fill in their tables, circulate to make sure they understand the issues that faced Britain, France, and the United States after the war. For a completed version of the table, see Note Taking Transparencies, 180A What political issues did each of the three democracies face after World War I? Solutions for All Learners Answer Great Britain faced political division and the demands of the Irish for self-government. France was plagued by political divisions and financial scandals. The United States had to deal with the fear of radicalism and growing demands for limits on immigration. 530 The Rise of Totalitarianism L1 Special Needs L2 Less Proficient Readers To help students understand the contemporary definitions of socialism, liberalism, and conservatism, draw a line on the board to illustrate a spectrum. From left to right, place the words Socialist, Liberal, Moderate (in the middle), and Conservative. Explain that this spectrum measures each group’s beliefs in the appropriate amount of government involvement in the L2 English Language Learners economy. To the right are Conservatives, those who want very little or no government involvement in economics. To the extreme left are Socialists, who oppose a free market economy and prefer the greatest amount of government involvement in economics. Explain how the labels left and right are used for these political positions. wh07_te_ch16_s02_MOD_s.fm Page 531 Friday, March 2007 WH07MOD_se_CH16_s02_s.fm Page 531 Thursday, June 22, 2006 9:269,AM 7:02 PM Postwar Foreign Policy Postwar Foreign Policy In addition to problems at home, the three democracies faced a difficult international situation. The peace settlements caused friction, especially in Germany and among some ethnic groups in Eastern Europe. Instruct Arguing Allies France’s chief concern after the war was securing its borders against Germany. The French remembered the German invasions of 1870 and 1914. To prevent a third invasion, France built massive fortifications called the Maginot Line (ma zhee NOH) along its border with Germany. However, the line would not be enough to stop another German invasion in 1940. In its quest for security, France also strengthened its military and sought alliances with other countries, including the Soviet Union. It insisted on strict enforcement of the Versailles treaty and complete payment of reparations. France’s goal was to keep the German economy weak. Britain disagreed with this aim. Almost from the signing of the Treaty of Versailles, British leaders wanted to relax the treaty’s harsh treatment of Germany. They feared that if Germany became too weak, the Soviet Union and France would become too powerful. ■ Introduce Remind students that diplomats wanted to ensure a lasting peace. Have students speculate on policies that European nations might implement to guarantee peace. ■ Teach Ask students to list the steps the Western powers took to prevent another war. Ask Why did Britain and France disagree on how to enforce the Versailles Treaty? (France wanted a strict enforcement to ensure a weak Germany, which wouldn’t pose a threat; Britain wanted a loose enforcement to prevent a weak Germany and the threat of a strong France.) What was the flaw in the disarmament agreements? (They agreed to reduce the size of the navies, but not their armies.) ■ Analyzing the Visuals Remind students that the Kellogg-Briand Pact raised hopes for an end to war, but not everyone was optimistic about its success. Have students work in pairs and summarize the main idea of the cartoon. (Although the Kellogg-Briand Pact promised to outlaw war, the cartoonist feels that nations should still prepare for war by building up their armed forces.) Have pairs create a political cartoon that takes the opposite viewpoint. Analyzing Political Cartoons An End to War? The Kellogg-Briand Pact raised hopes for an end to war. But not everyone was so optimistic, as this 1929 American cartoon shows. The Search for Peace Despite disagreements, many people worked for peace in the 1920s. Hopes soared in 1925 when representatives from seven European nations signed a series of treaties at Locarno, Switzerland. These treaties settled Germany’s disputed borders with France, Belgium, Czechoslovakia, and Poland. The Locarno treaties became the symbol of a new era of peace. The Kellogg-Briand Pact, which was sponsored by the United States in 1928, echoed the hopeful “spirit of Locarno.” Almost every independent nation signed this agreement, promising to “renounce war as an instrument of national policy.” In this optimistic spirit, the great powers pursued disarmament, the reduction of armed forces and weapons. The United States, Britain, France, Japan, and other nations signed treaties to reduce the size of their navies. However, they failed to agree on limiting the size of their armies. From its headquarters in Geneva, Switzerland, the League of Nations encouraged cooperation and tried to get members to make a commitment to stop aggression. In 1926, after signing the Locarno agreements, Germany joined the League. Later, the Soviet Union was also admitted. A Kellogg-Briand Pact framed as a fire insurance policy B Adequate navy as a fire extinguisher C Uncle Sam looking at both 1. Do you think that the cartoonist feels that a fire insurance policy is enough to prevent a fire? 2. What point do you think the cartoonist is making about the KelloggBriand Pact? A The League’s Weakness The peace was fragile. Although the Kellogg-Briand Pact outlawed war, it provided no way of enforcing the ban. The League of Nations, too, was powerless to stop aggression. In 1931, the League vigorously condemned Japan’s invasion of Manchuria, but did not take military action to stop it. Ambitious dictators in Europe noted the League’s weakness and began to pursue aggressive foreign policies. L3 Independent Practice B C Have students write a paragraph explaining whether a treaty such as the KelloggBriand Pact of 1928 could ever bring an end to war. Remind them to explain the provisions of that pact. Monitor Progress How did the Treaty of Versailles affect the relationship between France and Britain? As students work on their responses, circulate to ensure they are expressing their opinions clearly and supporting them with evidence. History Background Maginot Line Most of the Maginot Line, a masterpiece of engineering, was built underground with connecting tunnels that stretched for miles. Main forts, placed strategically to protect river crossings and crossroads, were located about every three to five miles. These were self-contained underground structures more than 20 feet beneath the surface. Large enough to accommodate about 1,200 men, the forts contained barracks, kitchens, infirmaries, storage areas, telephone systems, electrical generation systems, and railways to move supplies. All that could be seen above ground were the barrels of the huge guns and gun placements. In the end, the line failed to prevent a German invasion. In 1940 German troops simply bypassed the Maginot Line and marched into France through the Ardennes forest. Answers Analyzing Political Cartoons 1. No, otherwise there would be no need for a fire extinguisher 2. that a signed agreement needs to be backed by military power Chapter 16 Section 2 531 wh07_te_ch16_s02_MOD_s.fm Page 532 Friday, March 9, 2007 7:02 PM wh07_se_ch28_s02_s.fm Page 532 Wednesday, October 26, 2005 11:32 AM INFOGRAPHIC Postwar Economics Instruct ■ ■ L3 Introduce: Vocabulary Builder Have students read the Vocabulary Builder term and definition. Based on their previous reading, have them predict which postwar nation(s) would be the most affluent and which would face economic problems. Teach On the board, draw a threecolumn chart with the title “Postwar Economics.” Label the columns Britain, France, and United States. Ask students to supply the information about the economic condition of each nation after World War I, and write their answers on the board. (Britain: lost overseas trade, was deep in debt, had outdated factories, and suffered severe unemployment, worker unrest and strikes. France: helped by German reparations and territories gained from Germany, but suffered economic swings. U.S.: became world’s leading economic power, experienced boom years, produced many consumer goods, and contributed loans and investments to aid European recovery.) Independent Practice Have students reread the paragraph under The United States Booms. In pairs, have them create a list of the pros and cons of economic interdependence. Using the Idea Wave strategy (TE, p. T22), ask groups to share their lists with the class. T he greatest worldwide depression in history began in the United States in 1929, and soon spread to touch most parts of the world. In the United States alone, millions lost their jobs and endured great hardship. Hungry people visited soup kitchens or waited in long bread lines. Thousands of people left their homes to seek work in cities. Some were forced to live in makeshift shantytowns or on the streets when they could no longer afford to pay for housing. The United States would not recover from this economic downturn until the start of World War II. Unemployment led people to visit soup kitchens like the one below in Berlin. In New York and other cities, bread lines spanned multiple city blocks (below right), and many people became homeless (far right). Overall U.S. production plummets. Allies cannot pay debts to United States. U.S. investors have little or no money to invest. World Payments Europeans cannot afford American goods. U.S. investments in Germany decline. German war payments to Allies fall off. 䉱 A man tries to find work (above). The cycle of war payments helped spread the Great Depression to Europe. Postwar Economics The war affected economies all over the world, hurting some and helping others. Britain and France both owed huge war debts to the United States. Both relied on reparation payments from Germany to pay back their loans. Meanwhile, the crushing reparations and other conditions hurt Germany’s economy. Britain and France Recover Britain faced serious economic problems in the 1920s. It was deeply in debt, and its factories were out of date. Unemployment was severe. Wages remained low, leading to worker unrest and frequent strikes. In 1926, a general strike, or strike by workers in many different industries at the same time, lasted nine days and involved some three million workers. In comparison, the French economy recovered fairly rapidly. Financial reparations and territories gained from Germany helped. Still, economic swings did occur, adding to an unstable political scene. Despite these problems, Europe made a shaky recovery during the 1920s. Economies returned to peacetime manufacturing and trade. Veterans gradually found jobs, although unemployment never ceased to be a problem. Middle-class families enjoyed a rising standard of living. Monitor Progress To review the section so far, have students summarize the economic situation of each Western power. Vocabulary Builder affluent—(AF loo unt) adj. rich, wealthy The United States Booms In contrast, the United States emerged from the war as the world’s leading economic power. In the affluent 1920s, middle-class Americans enjoyed the benefits of capitalism. American loans and investments backed the recovery in Europe. As long as the American economy prospered, the global economy remained stable. How did the war and its peace treaties affect the international economy? Solutions for All Learners L4 Advanced Readers Answer The cycle of war debt and reparations made Europe’s economic recovery shaky, while the United States boomed. 532 The Rise of Totalitarianism L4 Gifted and Talented Draw this “vicious cycle” graphic organizer on the board for students to analyze: People are not buying goods. → There is too much supply. → Companies lay off workers to save money. → Fewer people have extra money. → People are not buying goods. Ask students to work in groups and answer the following questions: (1) Where should a government intervene if it were to try to interrupt this cycle? For instance, should a government focus on buying up a company’s excess supply? Should it give its citizens money to buy goods? (2) How did the United States, France, and Britain address this issue during the 1930s? wh07_te_ch16_s02_MOD_s.fm Page 533 Friday, March 2007 WH07MOD_se_CH16_s02_s.fm Page 533 Thursday, June 22, 2006 9:279,AM 7:03 PM The Great Depression Percentage of workforce Unemployment, 1928–1938 35 30 25 20 15 10 5 L3 Instruct ■ Introduce: Key Terms Have students find the key term Great Depression (in blue) in the text and explain its meaning. Have students preview the Infographic on this page. Then ask Based on the definition and clues in the Infographic, what do you think are the characteristics of a depression? (unemployment, a major slump in business activity, and hard times) ■ Teach Discuss how the economic crisis developed in the United States. Ask What are three causes of the Great Depression? (less demand for raw materials, overproduction of manufactured goods, the crash of the stock market) How did the beginning of the depression in the United States affect world markets? (The U.S. economy was part of an international network of trade and finance; as its economy faltered, the economies that relied on it faltered, too.) Falling Demand and Overproduction The wealth created during the 1920s in the United States was not shared evenly. Farmers and unskilled workers were on the losing end. Though demand for raw materials and agricultural products had skyrocketed during the war, demand dwindled and prices fell after the war. Farmers, miners and other suppliers of raw materials suffered. Because they earned less, they bought less. At the same time, better technology allowed factories to make more products faster. This led to overproduction, a condition in which the production of goods exceeds the demand for them. As demand slowed, factories cut back on production and workers lost their jobs. ■ Quick Activity Show students The Great Depression and American Farmers from the Witness History Discovery School™ video program. Ask them Why were American farmers hit hard by the depression? (They had not shared equally in the wealth generated by the boom in the 1920s.) Crash and Collapse Meanwhile, a crisis in finance—the manage- Have students begin to fill in the chart identifying the causes and effects of the Great Depression. Reading and Note Taking Study Guide, p. 171 0 1928 1930 1932 1934 1936 1938 Year United States Great Britain Germany SOURCES: European Historical Statistics and Historical Statistics of the United States Thinking Critically 1. Synthesize Information How did world payments help cause the Great Depression to spread from the United States to Europe? 2. Analyze Visuals Based on the line graph, which country had the highest percentage of unemployed people in 1932? In 1938? The Great Depression This prosperity did not last. At the end of the 1920s, an economic crisis began in the United States and spread to the rest of the world, leaving almost no corner untouched. ment of money matters, including the circulation of money, loans, investments, and banking—was brewing. Few saw the danger. Prices on the New York Stock Exchange were at an all-time high. Eager investors acquired stocks through risky methods. To slow the run on the stock market, the Federal Reserve, the central banking system of the United States, which regulates banks, raised interest rates in 1928 and again 1929. It didn’t work. Instead, the higher interest rates made people nervous about borrowing money and investing, thereby hurting demand. In the autumn of 1929, jitters about the economy caused many people to sell their stocks at once. Financial panic set in. Stock prices crashed, wiping out the fortunes of many investors. The Great Depression, a painful time of global economic collapse, had begun quietly in the Independent Practice Reading Skill: Identify Main Ideas To help you to remember what you’ve read, use a chart like the one below to record the main ideas of the next two subsections. Monitor Progress The Great Depression Causes • • • Effects • • • Reactions • • • As students fill in their charts, circulate to make sure they understand the downward spiral set in motion by the American economic crisis in the 1920s. For a completed version of the chart, see Note Taking Transparencies, 180B Link to Economics An Interesting Theory During the Great Depression, one in four Americans was jobless. From 1928 to 1930, the unemployment rate in Great Britain doubled. Many people began to doubt that the economy could correct itself. During these uncertain times, British economist John Maynard Keynes put out a revolutionary economic theory. In his 1936 work, The General Theory of Employment, Interest, and Money, he showed how government actions might push the economy out of its depressed state. With this, he provided an economic basis for the creation of a government jobs program to reduce high unemployment. Many governments, looking to justify their decisions to increase spending, readily agreed with Keynes’s conclusions. Keynes’s work would influence economic policy for much of the twentieth century. Answers Thinking Critically 1. Because European countries were dependent on American loans and investment, they were hit hard when the American economy failed. 2. Germany; the United States Chapter 16 Section 2 533 wh07_te_ch16_s02_MOD_s.fm Page 534 Friday, March 9, 2007 7:03 PM WH07MOD_se_CH16_s02_s.fm The Democracies React to the Depression WITNESS HISTORY VIDEO L3 Instruct ■ ■ ■ Page 534 Thursday, June 22, 2006 9:28 AM Introduce: Key Terms Have students find the key term New Deal (in blue) in the text and explain its meaning. Ask students to predict the ways in which the New Deal would affect the depression. Watch The Great Depression and American Farmers on the Witness History Discovery SchoolTM video program to learn more about the impact of the Great Depression on rural Americans. The Depression Spreads The economic problems quickly spread around the world. American banks stopped making loans abroad and demanded repayment of foreign loans. Without support from the United States, Germany suffered. It could not make its reparations payments. France and Britain were not able to make their loan payments. Desperate governments tried to protect their economies from foreign competition. The United States imposed the highest tariffs in its history. The policy backfired when other nations retaliated by raising their tariffs. In 1932 and 1933, global world trade sank to its 1900 level. As you have read, the Great Depression spread misery from the industrial world to Latin America, Africa, and Asia. Teach Discuss the programs the three Western powers each adopted in an effort to lift the Depression. Ask Was the New Deal successful? (Partially; though it was not able to end the Great Depression, it did ease its effects on millions of Americans.) Ask students to propose other ways nations might have dealt with the problem. How did the Federal Reserve’s policies affect the Great Depression? Quick Activity Display Color Transparency 169: WPA Mural. Use the lesson suggested in the transparency book to guide a discussion on how the New Deal supported artists and provided work, as can be seen in this mural funded by the New Deal. Color Transparencies, 169 Independent Practice Tell students that FDR’s New Deal programs expanded the government’s role in the daily lives of Americans. Many Americans disliked this trend. In groups, have students stage a debate on this question, with one side defending the New Deal and the other criticizing it. The Democracies React to the Depression The governments of Britain, France, and the United States, like others around the world, tried to find ways to lift the Depression. None of their methods provided a quick fix, but they did alleviate some of the suffering. Britain and France Search for Solutions In response to the DepresThe Dust Bowl In Dorothea Lange’s famous 1936 photo Migrant Mother, Nipomo, California, a mother looks into the future with despair. She migrated to escape scenes like the one below, where huge dust storms buried farm equipment in Dallas, Texas. How did geography help aggravate the depression in the United States? Monitor Progress ■ Check Reading and Note Taking Study Guide entries for student understanding. ■ Point out the diagram on the next page. To review this section so far, ask students to explain how the New Deal illustrates John Maynard Keynes’s ideas on economic recovery. summer of 1929 with decreasing production. The October stock market crash aggravated the economic decline. In 1931, the Federal Reserve again increased the interest rate, with an even more disastrous effect. As people bought and invested less, businesses closed and banks failed, throwing millions out of work. The cycle spiraled steadily downward. The jobless could not afford to buy goods, so more factories had to close, which in turn increased unemployment. People slept on park benches and lined up to eat in soup kitchens. sion, Britain set up a coalition government made up of leaders from all three of its major political parties. The government provided some unemployment benefits but failed to take decisive action to improve the economy. By 1931, one in every four workers was unemployed. The Great Depression took longer to hurt France than some other countries. However, by the mid-1930s, France was feeling the pinch of decreased production and unemployment. In response, several leftist parties united behind the socialist leader Leon Blum. His Popular Front government tried to solve labor problems and passed some social legislation. But it could not satisfy more radical leftists. Strikes soon brought down Blum’s government. Democracy survived, but the country lacked strong leadership able to respond to the clamor for change. Link to Economics Answers The policies made people less likely to invest, which further hurt demand and eventually contributed to the closure of many banks and businesses. Caption Drought and erosion allowed windstorms to pick up and carry topsoil away across the plains. 534 The Rise of Totalitarianism Solutions for All Learners L4 Gifted and Talented Historians still debate whether Roosevelt’s New Deal helped the U.S. economy recover from the Great Depression, and whether the New Deal was worth the increase in government spending. To examine these questions, have student groups conduct a cost-benefit analysis of government spending during this period. Each group should determine whether U.S. government spending had benefits equal to or greater than the cost. First have groups gather data on government spending and gross domestic product from 1929 to 1940. Then ask them to consider: Did government spending raise gross domestic product during this period? What other factors might account for any increase in gross domestic product? Was the increase in government spending justified? For background and historical sources, go to Web Code nbe-2802. 1:01 PM Roosevelt Offers the United States a New Deal Meanwhile, in the United States, President Herbert Hoover firmly believed that the government should not intervene in private business matters. Even so, he did try a variety of limited measures to solve the crisis. Nothing seemed to work. In 1932, Americans elected a new President, Franklin D. Roosevelt. “FDR” argued that the government had to take an active role in combating the Great Depression. He introduced the New Deal, a massive package of economic and social programs. Under the New Deal, the federal government became more directly involved in people’s everyday lives than ever before. New laws regulated the stock market and protected bank deposits. Government programs created jobs and gave aid to farmers. A new Social Security system provided pensions for the elderly and other benefits. As the New Deal programs were being put into effect, a natural disaster in 1934 hit several central states. After years of drought and overfarming, huge winds blew across the plains. The winds picked up and carried away the topsoil exposed by erosion, creating the Dust Bowl. The storms destroyed crops, land, and equipment. Thousands of farmers lost their land. Many migrated to the cities of the West Coast in search of work and a new life. The New Deal failed to end the Great Depression, although it did ease the suffering for many. Still, some critics fiercely condemned FDR’s expansion of the role of government. The debate about the size and role of the federal government continues to this day. Economic Theories and the Great Depression Assess and Reteach According to classical economists, free market economies naturally regulate their own highs and lows. The government should interfere as little as possible. The economist John Maynard Keynes argued that during a depression, the government should step in and spend more to bring the economy back up to its full productive capacity. High output Output wh07_te_ch16_s02_MOD_s.fm Page 535May Friday, 2007 WH07MOD_se_CH16_s02_s.fm Page 535 Friday, 4, 2007May 12:444,PM Low output Productive capacity Government spending Consumer spending Consumer spending Business spending Business spending Diagram Skills What role did Keynes envision for government in the economy? Assess Progress ■ Have students complete the Section Assessment. ■ Administer the Section Quiz. ■ To further assess student understanding, use Progress Monitoring Transparencies, 119 Teaching Resources, Unit 4, p. 45 Reteach If students need more instruction, have them read the section summary. Reading and Note Taking L3 Study Guide, p. 172 L1 L2 Adapted Reading and Note Taking Study Guide, p. 172 Loss of Faith in Democracy As the Depression wore on, many people Spanish Reading and L2 Note Taking Study Guide, p. 172 lost faith in the ability of democratic governments to solve the problems of the modern world. Postwar disillusionment, soothed by the few good years of the 1920s, turned into despair in Europe. Misery and hopelessness created fertile ground for extremists who promised radical solutions. Extend How did the government of the United States react to the Depression? 2 Terms, People, and Places 1. For each term, person, or place listed at the beginning of the section, write a sentence explaining its significance. 2. Reading Skill: Identify Main Ideas Use your completed table and chart to answer the Focus Question: What political and economic challenges did the leading democracies face in the 1920s and 1930s? Comprehension and Critical Thinking 3. Synthesize Information How did Britain and France emerge from World War I as both victors and losers? Progress Monitoring Online For: Self-quiz with vocabulary practice Web Code: nba-2821 4. Predict Consequences What steps did the major powers take to protect the peace? Why did these moves have limited effects? 5. Recognize Cause and Effect Explain how each of the following contributed to the outbreak or spread of the Great Depression: (a) falling demand, (b) Federal Reserve Board, and (c) financial crisis. 6. Identify Central Issues How did the Great Depression affect political developments in the United States? Section 2 Assessment 1. Sentences should reflect an understanding of each term, person, or place listed at the beginning of the section. 2. After the war, democracies struggled to rebuild war-ravaged land. In later years, they faced political and social unrest and the spread of an economic crisis. 3. Britain and France, with American help, defeated Germany. Both, however, faced L3 ● Writing About History Quick Write: Make a Venn Diagram A useful way to gather details for a compareand-contrast essay is to use a Venn diagram. Place similarities between two ideas in the overlapping part of the circles; place differences in the parts that don’t overlap. Create a Venn diagram for an essay on the following thesis statement: The United States was in better shape than Britain and France after World War I. serious political divisions and economic fragility. 4. They signed several treaties and relied on the League of Nations to halt aggression; the pacts and the League did not have the power to enforce their goals. 5. (a) Falling demand led to overproduction. (b) When the Federal Reserve Board raised interest rates, people bought less and invested less. (c) The financial crisis of 1929 aggravated the downward cycle. L4 Tell students that the Great Depression started in the United States and Europe, but its effects spread all over the world. Ask them to look into how the Depression affected one of the following regions: Southeast Asia, Latin America, Africa south of the Sahara. Answers Diagram Skills to provide additional spending during a depression At first, by providing only minimal assistance but under Roosevelt’s New Deal, jobs were created, farmers received aid, Social Security was introduced, and the stock market regulated. 6. Under the New Deal, the federal government became more directly involved in the lives of Americans than ever before. ● Writing About History The Venn diagram should reflect facts from the section. For additional assessment, have students access Progress Monitoring Online at Web Code nba-2821. Chapter 16 Section 2 535
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