Inflation Simulation. Prices Rent 2 Skittles Food 1 Skittle Utililties 1 Skittle Incidentals 2 Skittles.

Inflation Simulation

Prices

• Rent 2 Skittles• Food 1 Skittle• Utililties 1 Skittle• Incidentals 2 Skittles

New Prices

• Rent 40 Skittles• Food 30 Skittles• Utilities 30 Skittles• Incidentals 20 Skittles

Newest Prices

• Rent 4000 Skittles• Food 4000 Skittles• Utilities 4000 Skittles• Incidentals 3000 Skittles

What is Inflation?• The word `inflation' describes a situation in which

prices are rising and the value of money is falling.

Hyperinflation in Weimar Germany

Invasion

• Late in 1922 Germany failed to pay an instalment of reparations on time.

• French troops occupied Germany's main industrial region, the Ruhr.

• They wanted to keep Germany weak. – A weak Germany meant that France was safe from

the threat of attack.

German Response

• Workers go on strike because they know it will just benefit the French

• All the workers on strike had to be given financial support. – The government paid its way by printing more and more

banknotes. – Germany was soon awash with paper money. – The result was hyperinflation.

Rich Kids?

Play Time

Fuel

Street Sweeping

Group Scenario Questions

• Work on the following questions in your group.

• You only need one piece of paper in the group.

THE GREAT DEPRESSION

LONG-TERM CAUSES

• Huge debts resulting from the costs of World War I

• Widespread use of credit• Overproduction of goods while demand was

falling• Rising wages for industrial workers while farm

earnings were falling

IMMEDIATE CAUSES

• New York stock market crash ruins investors

• Banks demand repayment of loans• Without capital, businesses and factories

fail

IMMEDIATE EFFECTS

• Vast unemployment and misery• Loss of faith in democracy and capitalism• Authoritarian leaders gain support

LONG-TERM EFFECTS

• Nazis take control of Germany• Fascist leaders gain support in Eastern

Europe• Governments experiment with social

programs• People blame scapegoats for economic

woes• World War II begins

Great Depression in the US Video

Great Depression Reading

Great Depression Questions

• Add your group’s answers to the following questions to the back of your Scenario.– How did the Great Depression affect his

childhood?– How did it affect his community?– What did they do for entertainment?– How did his life change when the Depression

ended?– How does the depression continue to shape

his life?