#AP World History: Modern - Post-WWI Economy & The Great Depression: Your Ultimate Study Guide 🚀

Hey there, future AP World History champ! Let's dive into the economic rollercoaster of the post-WWI era and the Great Depression. This guide is designed to be your go-to resource, especially the night before the exam. We'll make sure everything clicks, so you feel confident and ready to ace it!

#🌍 Post-WWI Economic Landscape: Treaty of Versailles & Its Aftermath

#The Treaty of Versailles (1919) 📜

• What was it? A peace treaty that officially ended WWI, but also laid the groundwork for future conflict.
• Key Players: The victorious Allied powers (primarily France, Britain, and the U.S.)
• Goal: To punish Germany and prevent future wars (Spoiler: It didn't quite work out that way!)

#Terms of the Treaty:

• Territorial Losses:

  • Germany lost all colonies.
  • Sudetenland went to Czechoslovakia.
  • Polish Corridor split Germany, giving Poland access to the sea.
  • Demilitarized Rhineland zone.

• Reparations:

  • Germany had to pay massive war debts (132 billion gold marks).
  • Crippled the German economy.

• Military Restrictions:

  • Limited size of the German military.
  • Banned production of certain weapons.
  • Disarmament of the German navy.

• War Guilt Clause (Article 231):

  • Germany was solely blamed for WWI.
  • Fueled resentment and nationalism in Germany.

#Treaty of Versailles. Image courtesy of ThoughtCo

#Immediate Post-War Economic Issues:

• Weakened Europe:

  • Inflation and massive debts.
  • Dependence on loans from the U.S.
  • Loss of overseas investments.

• Vicious Cycle of Debt:

  • Allied powers needed German reparations to repay their debts.
  • Germany took loans from the U.S. to pay reparations.
  • This created a fragile and unsustainable system. 💡