The Great Depression The Great Depression was a worldwide economic breakdown that started in 1929. The U.S. had experienced many earlier depressions but never expected one like this. The unemployment rate was 25% in the U.S. and went up to 33% in other countries. This is just one effect the Great Depression Cause. By : Nathan Corchis
My 5 Causes of The Depression 1) The Stock Market Crashing 2) More than 9,000 banks shutting down in the 1930’s. 3) The drought that held back payments especially for farmers. 4) Than of course, many stopped buying, which put stores in foreclosure and kept the stock market in bad condition. 5) Industrial production fell.
Stock Market 1) Mid 1920’s- Stock market was a hit. Everyone started investing in it and thinking about becoming rich. 2) 1928- People starting buying and selling very quickly instead of waiting to sell. 3) Late 1920’s- People didn’t have the money to buy stocks but they did anyway and this started the downturn. 4) Finally, people couldn’t sell there stocks fast enough and the market crashed on October 29, 1929 (Black Tuesday).
Banks Many people withdrew their money from banks because they didn’t believe the bank would be able to pay them back. This is called a bank run. More than 9,000 banks shut down in the 1930’s. Then in 1933 President Roosevelt made a national bank holiday. The banks all closed on March 6, 1933 and could only reopen when they could pay their debts off.
Industrial Production & Politics - Industrial Production: USA- down 47% Britain- down 16% France- down 31% Germany- down 42%
Then in 1932 the Americans elected a Democrat, Franklin D. Roosevelt.
President Roosevelt made a New Deal.
The New Deal and The “3 R’s”: relief, recovery and reform.
Relief for the unemployed and poor.
Recovery of the economy to normal levels
Reform of the financial system to prevent a repeat depression.
Unemployment One in four Americans could not find a job. That is unbelievable how few job opportunities there were in the 1930’s. One main reason so many people were unemployed was because of the stock market crash.
Since the stock market crashed, people did not have any money to spend.
Since people didn’t have money to spend, stores went out of business and people lost their jobs.
My Opinions I believe the government should have put limitations on the stock market in the late 1920’s because everyone took advantage of it and did not really understand the concept. I would have made a maximum number of days you had to keep your stocks because people were buying and selling constantly. I also do not think it is right to compare the Great Depression to today’s economic crisis. The unemployment rates were much higher than today and many more stores closed. When somebody lost their job in the 1900’s, not a big chance there was for another job.
Standards Met 1) I Utilized historical inquiry skills and analytical processes by asking the question, “What are the main causes of the Great depression” and when I checked over my work to see if is was true and comprehensive. 2) I Recognized significant causes, events, figures, and consequences of the Great War period and the impact on worldwide balance of power because I talked about the Great Depression, which was during the period of the Great War. 3) I Identified major economic, political, social, and technological trends beginning in the 20th century-- I talked about political power in the US, economic troubles, and what civilians faced during this time period. 4) The student uses multiple strategies to develop grade appropriate vocabulary. (I used a dictionary and thesaurus to correct my grammar and put in age appropriate words. 5) The student uses a variety of strategies to comprehend grade level text. ( I used the internet, dictionary, and my teachers.) 6) The student will write a draft appropriate to the topic, audience, and purpose. (This is my draft and I am sending it to an expert to have it reviewed.) 7) The student will revise and refine the draft for clarity and effectiveness. (When I receive it back from the expert I will correct the project.) 8) The student will edit and correct the draft for standard language conventions. ( I will use my experts’ and teachers’ critique’s and fix all errors.)