The Great Depression (1930-1941). From Boom to Bust.

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Presentation transcript:

The Great Depression ( )

From Boom to Bust

Definition of Depression Severe economic downturn---money is not circulating… US had others in 1873 and 1893 The “Great Depression” was the most severe, the longest and international

Causes The Crash of 1929

Banking System $ in stock market Gold Standard Not enough $ in circulation

Smoot Hawley Tariff US placed a tariff on European imports Europe placed a reciprocal tariff Led to a slowing of trade US companies couldn’t sell their products overseas

Wealth Disparity A few people had lots of $$$ Most didn’t Not enough money circulating

Herbert Hoover “Hoovervilles” became symbols of depression Hoover blamed for depression Bonus Army last straw

Franklin Delano Roosevelt FDR Democrat Elected in 1932 Laissez Faire discredited

Freedom from Fear Promised a more active government In 1st 100 days get Congress to pass many new programs to jump start the economy

The New Deal Relief Recovery Reform