The Great Depression By Rebecca Tang

The Start The great depression is a global severe economic recession that happened roughly between 1929 to On 24 th, October, 1929, the stock prices in The United States started to decline crazily; and on 29 th, October, 1929, the decline reached its extremity, this event was known as “Black Tuesday”, a signal of the beginning of the Great Depression. (which was less than 8 months into president Herbert Hoover’s presidency.) October 1929 The stock market crashes, marking the end of six years of unparalleled prosperity for most sectors of the American economy. The "crash" begins on October 24 (Black Thursday). By October 29, stock prices will plummet and banks will be calling in loans. An estimated $30 billion in stock values will "disappear" by mid-November.

Causes An enormous economic crisis like the Great Depression did not appear out of nothing. There were several sayings about the causes of it: - The United States became the largest banker in the world after World War I, and those European countries were not recovered from the economy decline brought be the war. So they brought less products from The United States, and then the Great Depression started. -“The stock market’s dependence on borrowed money” -The over production of crops in the Soviet Union

Continuation Because of the stock market crash, those listed companies and investors lost much money, which directly led to the decrease in people’s power of consumption and market requirements of a lot of products. And this gave those listed company and businesses in other fields an even stronger shock. Many entrepreneurs started to destroy their products, in order to maintain its normal price. They also began to cut the employment for the sake of saving expenses. March 1930 More than 3.2 million people are unemployed, up from 1.5 million before the October, 1929 crash. President Hoover remains optimistic, however, stating that "all the evidences indicate that the worst effects of the crash upon unemployment will have passed during the next 60 days.“ November 1930 The street corners of New York City are crowded with apple-sellers. Nearly 6,000 unemployed individuals work at selling apples for five cents apiece.

The Consequences The almost bankruptcy of Greece. (resulted from the heavy strike given to the European economy.) Bankruptcy of many companies American political realignment A continuation of a large number of migration The lack of educational resources Population decreased

Policies Published Stock Market And Banking Regulations: “After the stock market crash of 1929 and the collapse of more than 40% of American banks by 1933, strict trading and banking regulations were put in place, as well as financial protections, enforced by the newly formed Securities and Exchange Commission (SEC) and the Federal Deposit Insurance Corporation (FDIC).” Franklin D. Roosevelt’s New Deal ( between 1933 and 1938): it was “designed to help America pull out of the Great Depression by addressing high rates of unemployment and poverty. An array of services, regulations, and subsidies were introduced by FDR and Congress, including widespread work creation programs. The cornerstones of the New Deal were the Public Works Administration and the National Recovery Administration.”

References deal/resources/herbert-hoover-great-depression-and-new-deal-1931– deal/resources/herbert-hoover-great-depression-and-new-deal-1931– timeline/ timeline/