THE CAUSES OF THE GREAT DEPRESSION. WAIT… WHAT’S THE GREAT DEPRESSION?
The Great Depression
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Transcript of The Great Depression
The Great DepressionCauses, Consequences, and New DealSOL: VUS.9c
Causes of the Stock-Market Crash of 1929
Overspeculation on stocks. Using borrowed money to
invest in businesses and stock.
Couldn’t pay back once stock market crashed on October 29, 1929.
Bank failures 1930’s saw 9,000 banks
close. Surviving banks stopped
giving out loans. People made “runs” on the
banks.
Causes of the Crash cont…
Reduction in purchases made by people. Production slows People lose jobs Less money in circulation Unemployment rose above
25%. Smoot-Hawley Tariff 1930
America taxed imports on trade from other countries.
Other countries began taxing our goods. Trade ceased.
We had a lot of supply but no market to sell to. Businesses closed.
Consequences of the Stock Market Crash People rushed to the
banks to take out their money in fear of losing their life savings.
People stopped investing money into the economy.
People stopped spending money.
Less money in circulation (hoarding money).
The Great Depression Sets In Stock Market Crash of
1929 caused a ripple effect of the economy into a deep depression.
Federal Reserve couldn’t control the amount of money in circulation. (money in jars/under the mattress)
Economy couldn’t thrive without foreign trade. (Hawley-Smoot Tariff
1930)
Impacts of the Great Depression
Unemployment and homelessness “Hoovervilles”
Bank closings People lose life savings
Public Issues Labor Union violence
Foreclosures on farms which causes migrations. Due to drought Farmers of mid-west
migrate west to California
Where did the people turn?? Franklin Delano
Roosevelt (FDR) Cousin of Theodore
Roosevelt Became 32nd
President in 1933 in the midst of the Great Depression.
Handed the task of getting the country out of the Great Depression.
FDR’s “Fireside Chats” A series of 30 radio
programs delivered directly to the homes of people from 1933-1944 by President Roosevelt.
Appealed to the people by speaking in language they could understand and comforted their fears.
Spoke as a normal member of society.
FDR’s “New Deal” “We have nothing to fear but
fear itself.”
The New Deal changed the role of government in the economy.
It also changed the attitudes of people towards the role of government.
Now citizens depend on the Federal Government to “fix” their problems and to take care of them in times of need.
Major Provisions of New Deal
WPA (Works Progress Administration) Gave money directly to families
to maintain homes and food. AAA (Agricultural Adjustment
Administration) Idea to pay farmers to limit
amount of crops harvested FDIC (Federal Deposit
Insurance Corporation) Attempt to promote deposits in
banks by insuring money deposited by customers.
Social Security Act Payments made to retired and
unemployed due to illness or injury.
Images of the Depression
Dorthea Lange Famous
photographer of this time period.
This picture is a representation of the Great Depression.
Images of the Depression
Images of the Depression
Images of the Depression