Great Depression/New Deal Causes and Effects. Depression: Overall Causes Wealth is unequally distributed among the population Many people go into debt.

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Presentation transcript:

Great Depression/New Deal Causes and Effects

Depression: Overall Causes Wealth is unequally distributed among the population Many people go into debt on installment plans Old and decaying industrial base makes U.S. industry less competitive Industry and agriculture overproduce Government pursues unsuccessful economic policies Stock market crash leads to financial panic

Depression: Overall Effects People suffer widespread unemployment, hunger, poverty, and homelessness Industrial and farm production falls World economic crisis develops Democrats win victory in 1932 Roosevelt initiates the New Deal

The New Deal: Causes The Great Depression worsens Businesses and banks fail People continue to suffer hardship and lose hope Roosevelt elected president in 1932

The New Deal: Overall Effects Congress passes legislation for relief, economic recovery, and financial reform Supreme Court strikes down several programs Social Security system enacted Federal government’s role in nation’s economy expands Workers gain protections Some hope restored