The great depression


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The great depression

  1. 1. The Great Depression<br />Submitted by: Charisse A. Caminong<br />MGT 110/ BY02<br />Prof. Quiogue<br />
  2. 2.<br />
  3. 3. Depression vs. Recession<br />Depression – a significant decline in the gross domestic product that lasts several years.<br />Recession – a temporary downturn in economic activity usually indicated by two consecutive quarters of falling GDP.<br /><br />
  4. 4. Great Depression<br />Originated in the U.S. starting with the fall in stock prices on Sept. 4, 1929 and became worldwide with the stock market crash on Oct. 29, 1929.<br />Also known as the Wall Street Crash of 1929.<br />Personal income, tax revenue, profit and prices dropped and unemployment in the U.S. rose to 25% and in some countries up to 33%.<br /><br />
  5. 5. Cont.<br />Some people blamed late President Herbert Hoover for the economic downturn. <br />After 3 years, Franklin Delano Roosevelt claimed the position of presidency introducing the program New Deal.<br />AAA – Agricultural Adjustment Administration<br />CCC – Civilian Conservation Corps<br />WPA – Works Progress Administration<br /><br />
  6. 6. Causes of the Great Depression<br />The stock market crash of 1929.<br />Major cause of the great depression and after 2 months stockholders lost more than $40B.<br />Bank Failures<br />Bank deposits were not insured and so people lost their savings and surviving banks would not let people create new loan.<br /><br />
  7. 7. Reduction in Purchasing<br />People stopped purchasing with the fear of losing their money due to the fear of further economic downturn.<br />American Economic Policy<br />U.S. created the Smoot-Hawley Tariff Act in 1930 which charged high tax to imports that led to less trading between U.S. and other countries.<br /><br />
  8. 8. Result of the Great Depression<br />Worldwide collapse of economy.<br />Many people became ill with diseases such as tuberculosis.<br />Many people were homeless and jobless. Unemployment rose rapidly.<br />Savings accounts were wiped and most banks closed due to bankruptcy.<br /><br />
  9. 9. Opinion:<br />The great depression served as a lesson for all and showed the importance of the role of government in the economy.<br />The government should aid the businesses with more programs to avoid problems in the economy.<br />The central bank should closely monitor the money supply since one of the causes of the great depression was the contraction of money by the Federal Reserve.<br />
  10. 10. Economists, as well as the government should carefully study the economy to avoid another economic downturn.<br />People should also be aware of the status of society and help in stabilizing the economy.<br />We should continue to help the society to improve the economy to avoid another great depression.<br /><br />