Blueprint for Economic Disaster

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Blueprint for Economic Disaster

• The Great Depression
• 1929 1940

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Exxon paid the most taxes last year of any U.S.
company, by far -- but not a cent went to the IRS
for income taxes. That's because the oil giant
does business in some of the mostly highly taxed
countries in the world. Want to extract petroleum
in Nigeria? Be prepared to fork over up to 85 of
your profit in tax payments.
2009 profit 19.3 billion The global recession
cost Exxon bragging rights It's no longer
America's largest company ( that title now goes
to Wal-Mart) and it isn't posting record profits.
Indeed, earnings got cut in half as sales dropped
by more than a third in 2009. But Exxon remains
unlike any company on our list. Consider that the
oil giant spent a record 27 billion during the
year on exploration projects, yet it still earned
more than the gross domestic product of
Macedonia.
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Essential Questions

• What was the impact of the war on the global
  economy?
• How did war reparations effect the global economy
  and international relations?
• What was the impact of tariffs on the global
  economy?
• Identify economic nationalism and its impact on
  the collapse of the global economy?

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Weaknesses of Global Economy

• Tangled financial relationships
• U.S. withdrew capital from Europe
• Industrial innovations gt reduced demand for raw
  materials work force
• Disruption overproduction of
  agricultural products

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CRASH OF 1929

• Economic boom over-speculation in the stock
  market.
• Subsequent economic contraction caused
• Black Tuesday October 29,1929
• Final collapse of the U.S. stock market
• Record sell off because of inability to meet
  margin calls

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Black Tuesday
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Economic Contraction Becomes Depression

• Germany Japan suffered the most
• Germany still had to pay reparations
• Caused HYPERINFLATION

• Reduced demand business failures
• U.S. GNP halved in 1932
• Contraction had ripple effect globally

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Unemployment Rates U.S.
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Colonial Export Economies Suffer

• China other agricultural based economies suffer
  less

• Export economies suffer
• Latin America Africa
• Philippines protected by U.S.

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Economic Nationalism

• Governments practiced economic nationalism
• Should have practiced international cooperation
• Tariffs restricted imports gt disrupted trade
• International trade dropped 66 b/w 1929 1932

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Smoot-Hawley Tariff
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America
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German Hyperinflation
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This map depicts the world's relative geography
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This map depicts the distribution of the world's
population.
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This map depicts global CO2 emissions
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This map depicts the distribution of the world's
wealth.
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World Per Capita Income
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Enduring Questions

• What are the dangers of economic decline or
  instability today?
• What lessons can we learn from the Great
  Depression?
• What New Deal policies were designed to prevent
  or protect from another economic collapse?
• Which of those policies are still in place in the
  U.S.?