The Great Depression
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Transcript

  • 1. The Great Depression
  • 2.
    • Period of very high poverty & high levels of unemployment
    What is a Depression?
    • Great Depression : 1929~1941
  • 3.
    • 1920s economy was not as prosperous as it seemed…
    A Booming Economy?
  • 4.
    • Decreasing farm prices
    Causes of the Depression
    • Prices fell when demand decreased after WWI
    • Farmers couldn’t pay debts & lost their farms
  • 5.
    • Decreasing farm prices
    Causes of the Depression
    • 1930s ~ drought in the Great Plains caused a “Dust Bowl”
    • Migration of farmers to the West (“Okies”)
  • 6.  
  • 7.
    • Uneven distribution of wealth
    Causes of the Depression
    • Very few rich people and very many poor people
    • Companies overproduced (people couldn’t afford to buy goods)
  • 8.
    • Decreased consumer spending in the late 1920s
    Causes of the Depression
    • People could buy on credit…
    • Credit debt led to less spending and business bankruptcies
  • 9.
    • 1929 ~ Stock Market Crash
    Causes of the Depression
    • 10/29/1929: Black Tuesday
    • Stock prices dropped quickly
    • Marks start of Depression
  • 10.
    • 1929 ~ Stock Market Crash
    Causes of the Depression
    • Investors had bought on margin (took out a loan to buy stock)
    • Results
    • Led to bank failures
    • Many lost life savings
  • 11. BANK You start a savings account Your money Your money Bank invests money Bank makes loans Your money Profit on investment Interest paid to your account People repay loans You may close your account
  • 12. The Stock Market Crashes!
  • 13. BANK You start a savings account Your money Your money Bank invests money Bank makes loans Your money Profit on investment People repay loans After the Crash, banks lose $ on investments After the Crash, people can’t repay loans
  • 14. People go to withdraw money that the bank does not have. Result: The bank collapses!
  • 15.  
  • 16.
    • Unemployment
    Effects of the Depression
    • 1933 ~ rose to 25%
  • 17. Effects of the Depression
    • Loss of homes
    • Hoovervilles ~ shantytowns
  • 18.  
  • 19.
    • Hopelessness
    Effects of the Depression
  • 20. The End