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?