“We are nearer to the final triumph over poverty than ever before in the history of any land.”

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Presentation transcript:

“We are nearer to the final triumph over poverty than ever before in the history of any land.” -Herbert Hoover 1929

What was the Great Depression? What makes it “great”?

Reviews: What Caused the Great Depression? Overproduction Low interest rates and efficient machines Tariffs Drive prices high Unequal Income Distribution Few can afford products; wages stagnant Stock Market Crash Buying stocks on margin and speculating Extremely corrupt

Machines, low interest rates, lead to efficiency/expansion, but prices high and so few have so much money (low wages) Tariffs drive prices higher Sales plummet, companies fire people 1929 Stock Market Crash wipes out savings and halt investment No money, no jobs, no production Top 5% held 30% of wealth

Consider This What do people do when they are desperate?

GDP Activity