The Great Depression of the 1930s was the longest and most severe economic downturn in modern history. It originated in the United States in 1929 and spread to other countries. Key factors included the stock market crash of 1929, drought conditions that hurt agriculture, declining consumer spending, and restrictive monetary policies. The Depression had widespread impacts such as high unemployment, poverty, homelessness, and shanty towns across America known as "Hoovervilles." New economic theories and policies emerged in response, including Keynesian economics and Roosevelt's New Deal programs to provide relief, recovery, and reform.
This presentation informing about great depression 1929. Telling us reasons of great depression, what happen in this processand How to find a solution for the crisis?
This presentation informing about great depression 1929. Telling us reasons of great depression, what happen in this processand How to find a solution for the crisis?
[SERIES 4/4] The Global Financial Crisis (2007 - 2009)
from the Frederic Mishkin's The Economics of Money, Banking, and Financial Markets
Financial Crises on Advanced Economies Chapter
Outline:
SERIES 1: Factors Causing Financial Crises
SERIES 2: Dynamics of Financial Crises in Advanced Economies
Series 3: The Great Depression
SERIES 4: The Global Financial Crisis of 2007 - 2009 (The Great Recession)
Other Sources:
The Causes and Effects of the 2008 Financial Crisis
https://www.youtube.com/watch?v=N9YLta5Tr2A
The Great Depression - Presentation (Macroeconomics Perspective)Arjun Parekh
This brief presentation on 'The Great Depression' has been made from the point of view of understanding Macroeconomic factors that played an important role.
this is one of the most demanding and soughted ppt searched by students .i have put many intellctual insights about reasons of great depression 1930 that not only falsified the economic classical theory of jb says but also noviated the birth of new econmical perspective.
Adam Geisen - ET 506 - Lesson planning in the cloudAdam Geisen
The PowerPoint presentation that has been uploaded is the initial informational presentation at the beginning of my first segment of professional development. In this unit, learners will be exposed to online lesson planners and their potential for coordination, collaboration and organization as No Child Left Behind legislation requires us to hold to state and national standards. These online tools allow teachers to share information and keep students and parents up to date on what’s happening in the classroom. After this presentation (which is intended to last 25-35 minutes counting questions and in-depth explanation) participants will spend 20-30 minutes exploring each planning tool and using online resources to compare and evaluate. Participants will also be expected to contribute to the PD message board that has been set up for the experience (a link is included on the PowerPoint).
[SERIES 4/4] The Global Financial Crisis (2007 - 2009)
from the Frederic Mishkin's The Economics of Money, Banking, and Financial Markets
Financial Crises on Advanced Economies Chapter
Outline:
SERIES 1: Factors Causing Financial Crises
SERIES 2: Dynamics of Financial Crises in Advanced Economies
Series 3: The Great Depression
SERIES 4: The Global Financial Crisis of 2007 - 2009 (The Great Recession)
Other Sources:
The Causes and Effects of the 2008 Financial Crisis
https://www.youtube.com/watch?v=N9YLta5Tr2A
The Great Depression - Presentation (Macroeconomics Perspective)Arjun Parekh
This brief presentation on 'The Great Depression' has been made from the point of view of understanding Macroeconomic factors that played an important role.
this is one of the most demanding and soughted ppt searched by students .i have put many intellctual insights about reasons of great depression 1930 that not only falsified the economic classical theory of jb says but also noviated the birth of new econmical perspective.
Adam Geisen - ET 506 - Lesson planning in the cloudAdam Geisen
The PowerPoint presentation that has been uploaded is the initial informational presentation at the beginning of my first segment of professional development. In this unit, learners will be exposed to online lesson planners and their potential for coordination, collaboration and organization as No Child Left Behind legislation requires us to hold to state and national standards. These online tools allow teachers to share information and keep students and parents up to date on what’s happening in the classroom. After this presentation (which is intended to last 25-35 minutes counting questions and in-depth explanation) participants will spend 20-30 minutes exploring each planning tool and using online resources to compare and evaluate. Participants will also be expected to contribute to the PD message board that has been set up for the experience (a link is included on the PowerPoint).
FoxyTasks Marketing Projects Tips and Tricks - Slide DeckAlek Kowalczyk
foxytasks.com CEO, Alek Kowalczyk continues his efforts to help Marketing Managers to do better their projects. On Feb 4th he presented the next webinar from the management techniques series.
Check out some tips and tricks every Project Manager should be aware of !
Surprised? Prepare for investor questions!Alek Kowalczyk
Startup founders often are not well prepared for specific investor questions, while the questions are quite often very similar: how you calculated much money you really need; what is the margin; when BEP is expected? This presentation loosely gathers most common questions the founders are often unprepared for, and some suggestions.
First presented on Road to Wolves Summit, Poznan.
Let's Code, is a session er organized, in the spirit of Code Kata and Code Retreat to improve your coding skills and this presentation is about the same. Inspired by an article, it presents some ruby snippets and a problem which developers can use and solve in any language of their choice.
Go through and leave your feedback in comments
5 ways your marketing project can ruin customer dayAlek Kowalczyk
Marketers do very creative and impressive projects. But overall result can be easily ruined by not following some simple best practices in project management.
Here is our checklist for marketing managers!
Marketing Day - French Style or German Reliability - Alex KowalczykAlek Kowalczyk
This is not a tale about cars, but about marketing managers and their projects. Is an easy thing to delight and in the same time build trust of your client? Marketers are creative people, always on the run, generating thousands of ideas and doing multiple projects. And their customers hope they will transform general goals not only into attractive marketing ideas, but also into laser-beam precise activities and results.
The Great Depression Cause And Effect Essay
Great Depression Causes
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Causes of the Great Depression Essay
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Essay On The Causes Of The Great Depression
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What Caused The Great Depression Essay
Great Depression Causes And Effects Essay
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Great Depression Cause And Effect Essay
Causes of the Great Depression Essay
The Great Depression (1929-39) was the deepest and longest-lasting economic downturn in the history of the Western industrialized world. In the United States, the Great Depression began soon after the stock market crash of October 1929, which sent Wall Street into a panic and wiped out millions of investors. Over the next several years, consumer spending and investment dropped, causing steep declines in industrial output and rising levels of unemployment as failing companies laid off workers. By 1933, when the Great Depression reached its nadir, some 13 to 15 million Americans were unemployed and nearly half of the country’s banks had failed. Though the relief and reform measures put into place by President Franklin D. Roosevelt helped lessen the worst effects of the Great Depression in the 1930s, the economy would not fully turn around until after 1939, when World War II kicked American industry into high gear.
The Great Depression was a major monetary droop in the 1930s. Numer.docxrtodd33
The Great Depression was a major monetary droop in the 1930's. Numerous Americans lost their positions, their investment funds, and their homes. In any case, the United States was not by any means the only influenced nation. The business droop influenced the whole world. Many quality Black Tuesday, when the New York Stock Exchange slammed in 1929, as the significant reason, yet one can not disregard the way that there was not only one single factor causing this financial defeat. Most antiquarians and financial analysts concur that the securities exchange crash was only one of numerous supporters of the droop. As a general rule, it was all the more a sign that things had just turned out badly. To comprehend the Depression's causes, one must go further back. The Great Depression came about because of a blend of efficient and political causes that had been developing since months preceding the accident.
After World War I finished, American ranchers made some troublesome memories making benefits. The homestead despondency of the 1920's was a contributing financial factor to the Great Depression. Ranchers were delivering a surplus and well over what American customers were obtaining. Costs of rural items fell around 40% by 1921 and stayed low for the remainder of the decade. A few ranchers were in so much deficiency they couldn't take care of the home loan on their homestead and needed to lease the land or even leave. Harsh occasions had hit other significant pieces of the economy, also, including vitality, coal mining, railways, shipbuilding, and materials. Organizations had a lot of stock and too barely any purchasers.
Likewise, high taxes and war obligations were political reasons for the Great Depression. America had loaned cash to the United Kingdom and other
European countries in World War I
reparations. This made numerous different economies become dependent on the U.S. economy. As the United States encountered this monetary downturn, numerous different countries were influenced as America demanded reimbursement. European nations couldn't bear to reimburse their obligations. Pressures were additionally exacerbated when the Hawley-Smoot Tariff Act was passed in 1930. In view of the goals of protectionism, this demonstration raised import obligations to secure American ranchers and specialists, bringing about world exchange decrease by 66% from 1929 to 1934 and worldwide financial strain.
The 1920's were a period of incredible financial and innovative development in America. World War I had quite recently finished, and Americans were prepared to take a break from the nervousness of world legislative issues. During this time, known as the Roaring Twenties, Americans were centered around bringing in cash and having a fabulous time. Manufacturing plants worked to make weapons and ammo for the war were restored to produce purchaser items. In any case, overproduction in industry brought about a financial reason for the Great Depression. .
The Great DepressionThe history of the United States.docxcherry686017
The Great Depression
The history of the United States economy has its roots in the European colonization of the 16th to 18th century. The independence of the thirteen colonies was established under the frontier, ingenuity and support from France and its allies. Since then, the economy of the United States has gone through a lot, for instance, the birth and evolution of the national debt which has expanded apparently without limits. Also, it is quite fascinating to point out the fact that the America’s economy grew to be the world’s leading economic superpower, in the 20th century, and it assumed the role of the greatest financial capital of the world (Fellows & Mike 39).
However, in the years following the America’s Great Depression, the United States’ trade deficit has continued to escalate, with much of America’s massive debt is now being now controlled by China, and a transfer of power appears to be in progress. Basically, this was a colossal financial deterioration that started in the late 1929 that continued into early 1940s (Rothbard 420).
The Great Depression, and even that’s now known as Black Thursday, was such a catastrophic time, not only in American, but also for most people across the entire world. As matter of fact, it was felt in a great deal of places ranging from North America to South America, and all the way to Europe and Japan. Also, cotton farmers and bankers felt the great impacts the depression. While most economists argue that there were several contributing factors to the Great Depression, it led to the most horrible economic crisis in the history of the economy of America.
Analysis of the causes
There are several causes of the Great Depression that are believed to have been the driving forces behind the worst economic situation in the America’s history. The crash of the United States stock market in 1929 was one of most commonly known primary factors that caused the Great Depression. For instance, the US experienced a tremendous surge in stock prices in 1920, but the Federal Reserve could not defend these prices by future earnings. However, in 1928 the Federal Reserve raised interest rates in order to slow rising stock prices. Nearly 2 months after the original crash in October, stockholders had lost over $40 billion dollars (Silverman 71). Although the stock market began to recover from some of its losses, by the end of the following year, it just was not enough and America truly entered what is called the Great Depression. The crash brought on a manifold of debates that are still active in today’s US economy ((Smith 76).
Failure of banks was another cause of the Great depression. As a matter more than 9,000 banks failed in the 1930s because Bank deposits were uninsured, and thus as banks failed people simply lost their savings. Unfortunately, surviving banks stopped being as willing to create new loans because they were overly concerned about their uncertain future as well as their survival in the grueling eco ...
Empowering the Unbanked: The Vital Role of NBFCs in Promoting Financial Inclu...Vighnesh Shashtri
In India, financial inclusion remains a critical challenge, with a significant portion of the population still unbanked. Non-Banking Financial Companies (NBFCs) have emerged as key players in bridging this gap by providing financial services to those often overlooked by traditional banking institutions. This article delves into how NBFCs are fostering financial inclusion and empowering the unbanked.
US Economic Outlook - Being Decided - M Capital Group August 2021.pdfpchutichetpong
The U.S. economy is continuing its impressive recovery from the COVID-19 pandemic and not slowing down despite re-occurring bumps. The U.S. savings rate reached its highest ever recorded level at 34% in April 2020 and Americans seem ready to spend. The sectors that had been hurt the most by the pandemic specifically reduced consumer spending, like retail, leisure, hospitality, and travel, are now experiencing massive growth in revenue and job openings.
Could this growth lead to a “Roaring Twenties”? As quickly as the U.S. economy contracted, experiencing a 9.1% drop in economic output relative to the business cycle in Q2 2020, the largest in recorded history, it has rebounded beyond expectations. This surprising growth seems to be fueled by the U.S. government’s aggressive fiscal and monetary policies, and an increase in consumer spending as mobility restrictions are lifted. Unemployment rates between June 2020 and June 2021 decreased by 5.2%, while the demand for labor is increasing, coupled with increasing wages to incentivize Americans to rejoin the labor force. Schools and businesses are expected to fully reopen soon. In parallel, vaccination rates across the country and the world continue to rise, with full vaccination rates of 50% and 14.8% respectively.
However, it is not completely smooth sailing from here. According to M Capital Group, the main risks that threaten the continued growth of the U.S. economy are inflation, unsettled trade relations, and another wave of Covid-19 mutations that could shut down the world again. Have we learned from the past year of COVID-19 and adapted our economy accordingly?
“In order for the U.S. economy to continue growing, whether there is another wave or not, the U.S. needs to focus on diversifying supply chains, supporting business investment, and maintaining consumer spending,” says Grace Feeley, a research analyst at M Capital Group.
While the economic indicators are positive, the risks are coming closer to manifesting and threatening such growth. The new variants spreading throughout the world, Delta, Lambda, and Gamma, are vaccine-resistant and muddy the predictions made about the economy and health of the country. These variants bring back the feeling of uncertainty that has wreaked havoc not only on the stock market but the mindset of people around the world. MCG provides unique insight on how to mitigate these risks to possibly ensure a bright economic future.
how to sell pi coins in South Korea profitably.DOT TECH
Yes. You can sell your pi network coins in South Korea or any other country, by finding a verified pi merchant
What is a verified pi merchant?
Since pi network is not launched yet on any exchange, the only way you can sell pi coins is by selling to a verified pi merchant, and this is because pi network is not launched yet on any exchange and no pre-sale or ico offerings Is done on pi.
Since there is no pre-sale, the only way exchanges can get pi is by buying from miners. So a pi merchant facilitates these transactions by acting as a bridge for both transactions.
How can i find a pi vendor/merchant?
Well for those who haven't traded with a pi merchant or who don't already have one. I will leave the telegram id of my personal pi merchant who i trade pi with.
Tele gram: @Pi_vendor_247
#pi #sell #nigeria #pinetwork #picoins #sellpi #Nigerian #tradepi #pinetworkcoins #sellmypi
what is the best method to sell pi coins in 2024DOT TECH
The best way to sell your pi coins safely is trading with an exchange..but since pi is not launched in any exchange, and second option is through a VERIFIED pi merchant.
Who is a pi merchant?
A pi merchant is someone who buys pi coins from miners and pioneers and resell them to Investors looking forward to hold massive amounts before mainnet launch in 2026.
I will leave the telegram contact of my personal pi merchant to trade pi coins with.
@Pi_vendor_247
Poonawalla Fincorp and IndusInd Bank Introduce New Co-Branded Credit Cardnickysharmasucks
The unveiling of the IndusInd Bank Poonawalla Fincorp eLITE RuPay Platinum Credit Card marks a notable milestone in the Indian financial landscape, showcasing a successful partnership between two leading institutions, Poonawalla Fincorp and IndusInd Bank. This co-branded credit card not only offers users a plethora of benefits but also reflects a commitment to innovation and adaptation. With a focus on providing value-driven and customer-centric solutions, this launch represents more than just a new product—it signifies a step towards redefining the banking experience for millions. Promising convenience, rewards, and a touch of luxury in everyday financial transactions, this collaboration aims to cater to the evolving needs of customers and set new standards in the industry.
when will pi network coin be available on crypto exchange.DOT TECH
There is no set date for when Pi coins will enter the market.
However, the developers are working hard to get them released as soon as possible.
Once they are available, users will be able to exchange other cryptocurrencies for Pi coins on designated exchanges.
But for now the only way to sell your pi coins is through verified pi vendor.
Here is the telegram contact of my personal pi vendor
@Pi_vendor_247
If you are looking for a pi coin investor. Then look no further because I have the right one he is a pi vendor (he buy and resell to whales in China). I met him on a crypto conference and ever since I and my friends have sold more than 10k pi coins to him And he bought all and still want more. I will drop his telegram handle below just send him a message.
@Pi_vendor_247
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The secret way to sell pi coins effortlessly.DOT TECH
Well as we all know pi isn't launched yet. But you can still sell your pi coins effortlessly because some whales in China are interested in holding massive pi coins. And they are willing to pay good money for it. If you are interested in selling I will leave a contact for you. Just telegram this number below. I sold about 3000 pi coins to him and he paid me immediately.
Telegram: @Pi_vendor_247
2. “The Great Depression Is To Economics Is What The Big-
bang Is To Physics.”
“The Great Depression is The Holy Grail Of
Macroeconomics “
‘With The Birth Of Modern Macroeconomics, and It
Continues To Haunt Successive Generations Of Economics’
3. WHAT IS IT ?
Great Depression was a severe worldwide economic
depression in the decade preceding World War II. The
timing of the Great Depression varied across nations,
but in most countries it started in 1930 and lasted until
the late 1930s or middle 1940s
It was the longest, most widespread, and deepest
depression of the 20th century
The depression originated in the U.S., after the fall in
stock prices that began around September 4, 1929, and
became worldwide news with the stock market crash
of October 29, 1929
4. RELEVANCE TO ECONOMICS
• The timing and severity of the Great Depression varied
substantially across countries .The Depression was particularly long
and severe in the United States and Europe; it was milder in Japan
and much of Latin America.
• Declines in consumer demand, financial panics, and misguided
government policies caused economic output to fall in the United
States.
• The gold standard, which linked nearly all the countries of the
world in a network of fixed currency exchange rates, played a key
role in transmitting the American downturn to other countries.
• The Great Depression brought about fundamental changes in
economic institutions, macroeconomic policy, and economic theory
5. Overview Economy
As the 1920s advanced, serious problems threatened the
economy while
Important industries struggled, including:
• Agriculture
• Railroads
• Textiles
• Steel
• Mining
• Lumber
• Automobiles
• Housing
• Consumer goods
6. Background To Great Depression
The 20’s had major prosperity, both to the economy and to how
Americans lived their lives. It gave people a newfound freedom.
Although they were very expensive, they became very popular.
This dramatic increase was key to the “roaring twenties”.
By the late 1920s, American consumers were buying less
Rising prices, stagnant wages and overbuying on credit were to
blame
Most people did not have the money to buy the flood of goods
factories produced
The wealthiest 1% saw their income rise 75%
The rest of the population saw an increase of only 9%
More than 70% of American families earned less than $2500 per
year
7. Factors Which Led To Great Depression
Stock Market Crash of 1929
Bank Failures
Reduction in Purchasing
Across the Board American Economic Policy
with Europe
Drought Conditions(Dust Bowl)
9. STOCK MARKET CRASH
of October 29, 1929
• Stock prices had risen more than fourfold from the low in 1921 to
the peak reached in 1929. In 1928 and 1929, the Federal Reserve had
raised interest rates in hopes of slowing the rapid rise in stock
prices. These higher interest rates depressed interest-sensitive
spending in areas such as construction and automobile purchases,
which in turn reduced production
• By the fall of 1929, U.S. stock prices had reached levels that could
not be justified by reasonable anticipations of future earnings. As
a result, when a variety of minor events led to gradual price
declines in October 1929, investors lost confidence and the stock
market bubble burst. Panic selling began on “Black Thursday,”
October 24, 1929
• The stock market crash reduced American aggregate demand
substantially. Consumer purchases of durable goods and business
investment fell sharply after the crash
10. The Trading Floor Of The New York Stock
Exchange Just After The Crash Of 1929. On
Black Tuesday, October 29,
The Market Collapsed. In A Single Day, 60
Million Shares Were Traded--a Record--and
30Billion Dollars Vanished Into Thin Air.
The "Era Of Get Rich Quick" Was Over. Jack
Dempsey, America's First Millionaire Athlete,
Lost $3 Million.
Cynical New York Hotel Clerks Asked
Incoming Guests, "You Want A Room For
Sleeping Or Jumping?"
11.
12. With the loss of confidence
in stocks, people began to
lose confidence in the
security of their money
being held in banks.
Customers raced to their
banks to withdraw
their savings.
So that led to bank failure
13. BANK FAILURE
A banking panic arises when many depositors lose confidence in the solvency of
banks and simultaneously demand their deposits be paid to them in cash. Banks,
which typically hold only a fraction of deposits as cash reserves, must liquidate
loans in order to raise the required cash. This process of hasty liquidation can cause
even a previously solvent bank to fail.
The United States experienced widespread banking panics in the fall of 1930, the
spring of 1931, the fall of 1931, and the fall of 1932. The final wave of panics
continued through the winter of 1933 and culminated with the national “bank
holiday” declared by President Franklin Roosevelt on March 6, 1933
The panics caused a dramatic rise in the amount of currency people wished to hold
relative to their bank deposits. This rise in the currency-to-deposit ratio was a key
reason why the money supply in the United States declined 31 percent between
1929 and 1933.
Declines in the money supply caused by Federal Reserve decisions had a severe
contra dictionary effect on output
14. Bank Failure Factories making
Too Much, Farms
growing too much
BANKS Have NO $$
PEOPLE LOST
SAVINGS & JOBS
NO ONE TO HELP!
Factories Fire
Workers
(Don’t need them)
Farm Prices fall
(Farmers can’t
make$$)
Farmers & Factory
Workers can’t pay back
loans to Banks:
DEFAULT!!
Banks Close because they
have no money: Loans
have not been paid back,
can’t give people their
savings
15.
16. Police stand guard outside the entrance to New York's closed World Exchange
Bank, March 20, 1931. Not only did bank failures wipe out people's savings, they also
undermined the ideology of thrift
17. REDUCTION IN PURCHASING
Actual price declines and the rapid decline in the money supply,
consumers and business people came to expect deflation – that
is, they expected wages and prices to be lower in the future.
As a result, even though nominal interest rates were very low,
people did not want to borrow because they feared that future
wages and profits would be inadequate to cover the loan
payments
This hesitancy, in turn, led to severe reductions in both
consumer spending and business investment spending.
The failure of so many banks disrupted lending, thereby
reducing the funds available to finance investment and hence
Great Depression.
18. Consumer purchases fell somewhat, governments' purchases did not fall at all
compared with 1929 but there was a catastrophic collapse of investment purchases.
Exports fell but imports fell as well so that there was not much of a change in net
exports. It is investment purchases, the purchases of new equipment and buildings and
inventory
19. The problem in the early 1930's was that the rate of inflation was
negative; i.e., there was deflation instead of inflation. This meant that
borrowers would have to pay back more valuable dollars than the ones
they borrowed.
20. The high real interest rates which came as a result of deflation could have
been a major factor in the collapse of investment which was the immediate
cause of the Depression. Once excess capacity and expectations of decreased
sales develop the level of investment drops to zero. After excess capacity
develops investment purchases will not rise even if the real interest rate
drops. Nonzero investment in such circumstance is maintained only from the
emergence of new products, for which there is no existing capacity, and the
finishing up of investment projects that are already started
The Federal Reserve Banking System (the Fed) was created to stabilize the
financial system and control the money supply. The Fed however probably
did not know the money supply was decreasing. The Fed saw only the
statistics on the monetary base, the currency in circulation plus the funds
held as reserves by the banks with the twelve Federal Reserve Banks
The problem was what was happening to the money multiplier. The Fed in
the late 1920's was trying to end the speculative bubble in the stock market.
The Fed managers applied more restrictive monetary policy than they
realized
The chain of causes of the Great Depression thus leads back to the restrictive
monetary policies of the Federal Reserve System
21.
22. GOLD STANDARD
• Under the gold standard, imbalances in trade or asset flows gave rise to
international gold flows.
• For example, in the mid-1920s intense international demand for American
assets such as stocks and bonds brought large inflows of gold to the
United States To stem the gold outflow, the Bank of England raised
interest rates substantially. High interest rates depressed British spending
and led to high unemployment in Great Britain throughout the second
half of the 1920s
• Maintaining the international gold standard, in essence, required a
massive monetary contraction throughout the world to match the one
occurring in the United States. The result was a decline in output and
prices in countries throughout the world that also nearly matched the
downturn in the United States
23. • Foreign lending to Germany and Latin America had expanded greatly
in the mid-1920s. U.S. lending abroad then fell in 1928 and 1929 as a result
of high interest rates and the booming stock market in the United
States. This reduction in foreign lending may have led to further credit
contractions and declines in output in borrower countries
• The effects of reduced foreign lending may explain why the economies
of Germany, Argentina, and Brazil turned down before the Great
Depression began in the United State
• The 1930 enactment of the Smoot-Hawley tariff in the United States and
the worldwide rise in protectionist trade policies created other
complications. The Smoot-Hawley tariff was meant to boost farm
incomes by reducing foreign competition in agricultural products. But
other countries followed suit, both in retaliation and in an attempt to
force a correction of trade imbalances
24. A drought in the South lead to dust storms that destroyed crops.
25. Natural Disaster “The DUST BOWL”
Great Plains suffers a huge Drought (1931)
Causes:
a) Drought . . .no rain
b) - New technology, tractors and steel plows tear-up extra sod
that was holding onto soil, drought turns open soil into sand
box
- Huge Dust storms cover ‘Great Plains
Results
a) Can’t pay banks- Banks take Farms
b) Many Great Plains farmers move to California,
1. Try to get jobs on large farms
2. Treated poorly in Calif. -
*‘Oakies’ & ‘Arkies’-Not wanted in West
27. EFFECTS OF THE DEPRESSION
A. JOBLESS / HOMELESS
1. 1930-1932 – JOBLESS GOES FROM 4 TO 12 MILLION
2. HOUSES ARE LOST, PEOPLE BECOME HOMELESS
3. PEOPLE ARE DESPERATE
B. HATRED FOR PRESIDENT HOOVER
C. BONUS ARMY
1. WWI Veterans Who Were Promised A $ Bonus In 1945,
* Veterans Want It Now (1932)
2. Veterans Go To Washington And “Camp Out”
3. Hoover Sends In Army (Eisenhower, Macarthur), Used Tear Gas, Machine
Guns, And Burned The Camp Down
28.
29.
30. HOOVER WINS
1928 ELECTION
• Republican Herbert
Hoover ran against
Democrat Alfred E. Smith
in the 1928 election
• Hoover emphasized years
of prosperity under
Republican
administrations
• Hoover won an
overwhelming victory
31. Herbert Hoover was president at the start
Philosophy: We’ll make it!
What He Did: Nothing
The poor were looking for help and no ideas
on how to correct or help were coming
32.
33. • The most obvious economic impact of the Great Depression was human
suffering. In a short period of time world output and standards of living
dropped precipitously.
• As much as one- fourth of the labour force in industrialized countries was
unable to find work in the early 1930s. While conditions began to improve
by the mid-1930s, total recovery was not accomplished until the end of the
decade
• The Great Depression hastened, if not caused, the end of the international
gold standard. Although a system of fixed currency exchange rates was
reinstated after World War II under the
• Bretton Woods system, the economies of the world never embraced that
system with the conviction and fervour they had brought to the gold
standard. By 1973, fixed exchange rates were abandoned in favour of
floating rates.
ECONOMIC IMPACT
34.
35. In many countries, government regulation of the economy, especially of
financial markets, increased substantially during the Great Depression.
The Depression also played a crucial role in the development of
macroeconomic policies intended to temper economic downturns and
upturns. The central role of reduced spending and monetary contraction
in the Depression led British economist John Maynard Keynes to develop
the ideas in his General Theory of Employment, Interest, and Money(1936).
The Depression changed the family in dramatic ways. Many couples
delayed marriage - the divorce rate dropped sharply and birth rates
dropped below the replacement level for the first time in American
history
On the other hand, women found their status enhanced by their new
roles. Black women especially found it easier to obtain work than their
husbands, working as domestic servants, clerks, textiles workers and
other occupations.
This employment increased their status and power in the home, gaining
them a new voice in domestic decisions.
36. Monetarists View
Monetarists highlight the importance of a fall in the money supply. They
point out that between 1929 and 1932, the Federal reserve allowed the money
supply (Measured by M2) to fall by a third. In particular, Monetarists such as
Friedman criticise the decisions of the Fed not to save banks going bankrupt.
They say that because the money supply fell so much an ordinary recession
turned into a major deflationary depression.
Austrian View
Austrian school of Economists such as Hayek and Ludwig Von Mises place
much of the blame on an unsustainable credit boom in the 1920s. In particular,
they point to the decision to inflate the US economy to try and help the UK
remain on the Gold standard at a rate which was too high. They argue after
this unsustainable credit boom a recession became inevitable. The Austrian
school doesn't accept the Friedman analysis that falling money supply was
the main problem. They argue it was the loss of confidence in the banking
system which caused the most damage.
Different Views Of The Great Depression
37. Keynesian View
Keynes emphasised the importance of a fundamental disequilibrium in real output.
He saw the Great Depression as evidence that the classical models of economics
were flawed.
Classical economics assumed Real Output would automatically return to equilibrium
(full employment levels); but the great depression showed this to be not true.
Keynes said the problem was lack of aggregate demand. Keynes argued
passionately that governments should intervene in the economy to stimulate demand
through public works scheme - higher spending and borrowing.
Keynes heavily criticised the UK government's decision to try balance the budget in
1930 through higher taxes and lower benefits. He said this only worsened the
situation.
Keynes also pointed to the paradox of thrift
38. A. Fixing Banks!!!
1. Declared a banking crisis
a. Closed ALL banks/ 4 day “Bank Holiday”
b. Emergency Banking Relief Act- Passed by
Congress, allowed only sound banks to reopen, the
rest remained closed
2. Fireside Chat- told Americans by radio that the
good banks were safer than $$ in a mattress
Fixing the Depression "New
Deal”
39. C. A NEW DEAL!!!
1. People Happy, Roosevelt sends bills to Congress
2. NEW DEAL BEGINS- 3 Goals:
a. Relief for Unemployed
b. Plans for Recovery
c. Reforms to Prevent more Depressions
3. Major New Deal Programs
a. Unemployment
*CCC- Civilian Conservation Corp
*PWA- Public Works Administration
*TVA- Tennessee Valley Authority
b. Recovery Plans
*NRA- National Recovery Act
*AAA- Agricultural Adjustment Admin.
c. Prevention Reforms
*FDIC- Federal Deposit Insurance Corporation
(Have you seen this?)
*SEC- Securities and Exchange Commission
40.
41. Sources Of Recovery:
Policies Followed
Monetary Policies
recovery
•Given the key roles of monetary contraction and the gold standard in
causing the Great Depression, it is not surprising that currency devaluations
and monetary expansion became the leading sources of recovery throughout
the world
Devaluation, however, did not increase output directly. Rather, it allowed
countries to expand their money supplies without concern about gold
movements and exchange rates. Countries that took greater advantage of
this freedom saw greater recovery
The monetary expansion that began in the United States in early 1933 was
particularly dramatic. The American money supply increased nearly 42
percent between 1933 and 1937. This monetary expansion stemmed largely
from a substantial gold inflow to the United States, caused in part by the
rising political tensions in Europe that eventually led to World War II
42. • Worldwide monetary expansion stimulated spending by
lowering interest rates and making credit more widely available
• It also created expectations of inflation, rather than deflation,
and so made potential borrowers more confident that their
wages and profits would be sufficient to cover their loan
payments if they chose to borrow
• One sign that monetary expansion stimulated recovery in the
United States by encouraging borrowing was that consumer and
business spending on interest-sensitive items such as cars, trucks,
and machinery rose well before consumer spending on services.
43. FISCAL POLICIES
• Fiscal policy played a relatively small role in stimulating recovery in the
United States
• Indeed, the Revenue Act of 1932 increased American tax rates greatly in an
attempt to balance the federal budget, and by doing so dealt another
contractionary blow to the economy by further discouraging spending
• Actual increases in government spending and the government budget
deficit were small relative to the size of the economy. This is especially
apparent when state government budget deficits are included, because
those deficits actually declined at the same time that the federal deficit
rose.
44. How It Ended ?
As a result, the new spending programs initiated by the New Deal had little
direct expansionary effect on the economy. Whether they may nevertheless
have had positive effects on consumer and business sentiment remains an
open question. United States military spending related to World War II was
not large enough to appreciably affect total spending and output until 1941
The role of fiscal policy in generating recovery varied substantially across
other countries. Great Britain, like the United States, did not use fiscal
expansion to a noticeable extent early in its recovery. It did, however,
increase military spending substantially after 1937.
France raised taxes in the mid-1930s in an effort to defend the gold standard,
but then ran large budget deficits starting in 1936. The expansionary effect of
these deficits, however, was counteracted somewhat by a legislated reduction
in the French workweek from 46 to 40 hours—a change that raised costs and
depressed production. Fiscal policy was used more successfully in Germany
and Japan.