The Great Depression The 1930’s

Overview of the Great Depression The Great Depression was a severe worldwide economic depression in the decade preceding World War II. ______________ It was the longest, most widespread, and deepest depression of the 20th century, and is used in the 21st century as an example of how far the world's economy can decline. The depression originated in the United States, starting with the ___________________ of October 29, 1929 (known as Black Tuesday), but quickly spread to almost every country in the world.

Causes of the Great Depression 1929 Stock market crash Bank failure Federal reserve contracts money supply Shrunk the money supply which thus exacerbated the already volatile economy Britain returns gold standard to pre WWI ______________ Protectionist policies

Economics A recession is defined as two quarters of negative economic growth within ones economy. Regulate interest rates Fiscal policy Tax and spend

Supply and Demand Business cycle (cyclical trends of the market) John Maynard Keynes (Keynesian economics) During times of depression, in order to stimulate the economy, the government must either Increase spending Decrease taxing Laissez-faire capitalism

The Depression and the US _____________ Individuals defaulting on _____________ Herbert Hoover Hawley-Smoot Tariff Act (1930) Seriously affected the depression Increased tariffs on imports and vastly influenced international trade Intended to encourage the _____________ of American made products Lead to other countries placing heavy tariffs on American made goods

Hoovervilles A hooverville was the popular name for the ________________ built by homeless people during the Great Depression. Federal Home Loan Bank Act Hoovers response to the housing crisis Emergency Relief Construction Act Provided funds for public works programs

Okies The thousands of ruined farmers and out of work small townspeople who migraed from the drought stricken areas to California.

The New Deal FDR and the New Deal

Effects of the Great Depression Most countries set up _________________ Political change People turned toward demagogues in extreme circumstances Adolf Hitler Set the stage for WWII