The Great Depression By Lauren S Lauren L

The Great Depression By: Lauren S. , Lauren L. , Jenny, Seth, David, and Natalie

The Great Depression was a time in which numerous countries experienced a crash of the economy after World War I. Prior to the crash America was in a great threshold. This period spanned the time period 1929 -1939. Reading Focus Questions: 1. What happened to the U. S. economy during the 1920 s? 2. How did the depression spread throughout the United States. ? 3. How did the Depression affect the world? David

The US Economy in the 1920’s Decade also known as the “Roaring Twenties” Economy was booming Unemployment was low Stock market climbing Good time for many Americans Lauren Salvatore

Economic Growth Most economic growth occurred in the industry Automobile manufacturing American factories made a wide assortment of goods (vacuums, radios, washing machines, etc) Growth steady throughout most of the 1920’s Lauren Salvatore

Prosperity and the Stock Market Prosperity: a successful, flourishing, or thriving condition, especially in financial respects Overall value of the stocks traded at the nation's stock markets rose 400% The success of the American industry was reflected in the stock markets Many Americans rushed to buy stocks Some borrowed money from stock brokers Increasing investment in the stock market drove stock prices higher Lauren S. and Lauren L.

Hidden Problems New wealth being created was not distributed evenly The 1% of the population earned 19% of the nation’s income Easy availability of credit allowed Americans to increase their spending on consumer goods Many consumers were reaching their limit of their credit and could no longer afford to buy the products that had kept the US economy expanding Lauren L.

The Stock Market Crash By fall 1929, consumer spending had slowed, and sales suffered Investors were scared their shares would devalue, and they began to sell of their stocks This grew to become a huge sell-off as more and more investors joined in (Black tuesday was a major sell-off day) The stock market crashed, ruining many investors Banks that had lent money to investors were in financial trouble The crash severely harmed the already struggling American industry Lauren L.

Black Tuesday- October 29, 1929 On Oct 29 investors sold 16 million shares due to the desperation to sell stocks. One of the worst days of the sell-off Investors were selling, but few people wanted to buy stocks Stocks flooded the markets Stock prices completely collapsed Investors forced to sell at a lost in order to repay loans Jenny Kowalczyk

The spread of economic depression American economy had taken a dive due to multiple factors The American economy was very complexly connected and intertwined with the European economy Therefore, when the US economy fell into depression, the European economies would soon follow European countries were already struggling after WWI War debts and, in Germany’s case, reparations Multiple countries in debt to US When US took a dive it requested the indebt countries to pay, leaving those countries even Jenny Kowalczyk worse off economically (in some cases even bankrupt)

Slowing of Industry Begun before the crash but worsened quickly after it As industry slowed, workers lost their jobs, by 1933 one out of every four workers was unemployed Joblessness and poverty reduced Americans ability to buy food and goods, which hurt industry even more Banks also suffered Seth Wilens

Governmental Response U. S. president Herbert Hoover believed that the federal government should have a limited rule in business affairs He favored a minimal government response to the crisis Advisers believed the Great Depression was a normal healthy adjustment to an overheated economy Seth Wilens

Franklin Delano Roosevelt Elected president Role in the lives of American greatly increased He pushed forward a program known as the New Deal (aimed at fighting the Great Depression) Believed that government spending could help start an economic recovery New Deal established public works programs that gave jobs to the unemployed and provided government money for welfare and other relief programs Seth Wilens

Music-The Blues The blues is a form of music that developed in the American South in late 1800 s. The type of music evolved from the African American communities. The blues are sharing sadness and problems The music spread through the north during the Depression. Artists: Robert Johnson, nicknamed the grandfather of rock and roll; Bessie Smith one of the most popular blues singers of 1920 s &30 s David

The New Deal 1932 Franklin Delano Roosevelt took into office and pushed for “The New Deal” The New Deal was aimed to fight the Great Depression by having the government boosting the economy. This plan provided new jobs, welfare and a regulation on the stock market David

John Maynard Keynes is a British economist that had many theories. He believed that the government could limit or even prevent economic downturns. The government would use its own money to help get out of the depression. Factories would hire workers to meet the new demand, providing workers with a steady income, and cause them to spend their earnings; thus the depression would end. David

The World Wide Depression How did the Depression affect the world? America was one of the world’s leading importers and lenders of money and when the Great Depression started they were not able lend as much which negatively affected other countries, worldwide Also the reparations from WWI that countries had, caused countries to suffer worldwide and caused many countries to have a bad economy Political Impact After WWI the government was struggling In countries extremist political groups gained strength as economics worsened, Natalie Fitzpatrick

Smoot-Hawley Tariff Act, President Hoover This act placed heavy taxes on imported goods in an attempt to encourage Americans to buy goods & products in the US This made the Great Depression much worse in the US Even though many people did not like the Tariff Act, President Hoover signed it anyways Natalie Fitzpatrick

Conclusion to the Great Depression The Great Depression served as a major source of suffering, hardship and political instability for the people of America as well as Europe. The depression affected other nations in the world by slowing down trades, changing the tax prices on imported and exported goods and causing extreme inflation. The Great Depression pushed citizens to the point of desperation for leadership and help. This desperation and misery created the perfect situation for powerful rulers, such as HItler, to take advantage of the people and come to power. Jenny Kowalczyk

The Great Depression: Recap Video https: //www. youtube. com/watch? v=f 8 k 0 j. Jdq. KP 0