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WWI
A global conflict that lasted from 1914-1918. The war was caused by the assassination of Archduke Franz Ferdinand of Austria-Hungary in 1914 and involved many of the worlds great powers fighting each other. Many European cities and towns had been completely destroyed because of the war and Governments had borrowed money from the US and by the end of the war, owed more than 7 billion dollars to the United States. -
Treaty of Versailles
The treaty of Versailles was the main treaty produced from the Paris Peace Conference which took place at the end of World War I. The treaty gave some German territories to other countries and put others under supervision. Germany was also required to pay reparations for war damages, paying a total of 33 billion. -
Rise of Communism
Communism is the economic and political model that opposes capitalism and gets rid of class distinctions. After Stalin became a one party state he took over many businesses and financial enterprises which is the first step towards communism. -
Stalin
Joseph Stalin (1878-1953) was the leader of the Soviet Union from the mid 1920s until his death in 1953. During his rule he was able to make the country much stronger. His leadership during World War II was a big reason for the defeat of Germany, but his actions before and after the war impacted the Soviet Union and its people, with political repression, mass executions, and widespread famine marking this time period. -
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The Great Depression
In the 1920s consumer spending rose and many people invested in the stock market, borrowing money from the bank to do so. By the end of the decade less people were spending money but production didn't decrease this caused stocks to go down and people selling their stocks. Stocks weren't worth as much and people were forced to sell their homes/businesses to pay loans. Since people weren't spending money people began to lose their jobs. This quickly spread, leading to a global economic downturn. -
Hitler
Adolf Hitler was a German politician from 1889-1945 who became the dictator of Germany. He played a large role in the initiation of World War II and was responsible for carrying out the Holocaust in which over 6 million Jews were murdered. WWII and Hitlers rule only helped Germanys war economy. During this time there was a large production of war materials and equipment which absorbed resources and labor, boosting the economy. -
WWII
Hitler promised to fix the effects that the treaty of Versailles and the Great Depression had on Germany so after Hitler became a dictator he took over Austria and Czechoslovakia, after the invasion of Poland, Britain and France declared war on Hitler starting WWII. This war had many economic effects on the world including women joining the work force, the death of more than 60 million people or 3.7% of the worlds population, and the involvement of more than 50 countries in the war. -
Bretton Woods Conference
The Bretton Woods Conference was the meeting of representatives from 44 countries in 1944 to find a way to fix the economic crisis in order to prevent another world war. During this meeting the International Monetary Fund and World Bank were developed. -
IMF
The International Monetary Fund was developed in the Bretton Wood Conference and works to provide emergency short term loans to countries so that they are able to rebuild without damaging their economy, helping the worlds economy. -
World Bank
The World Bank was developed during the Bretton Woods Conference and has the main goal of helping the economy in developing countries and funding infrastructure projects. -
GATT
General Agreement on Tariffs and Trade was in effect from 1948 to 1994 and aimed to reduce trade barriers and promote free trade among countries. Reducing trade barriers allowed nations to focus on producing goods that their nation had an advantage in, creating economic efficiency. -
WTO
The World Trade Organization was created in 1995 to help with trade negotiations, settle trade disputes, and create rules for trade. It replaced the General Agreement on Tariffs and Trade and aims to form a open trade system among its members. The WTO creates mutually beneficial trade agreements, establishing economic developments globally.