 Before Great Depression  Govt. did very little domestically.  Main duties of the federal govt.:  Deliver the mail.  Maintain a national military.

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Presentation transcript:

 Before Great Depression  Govt. did very little domestically.  Main duties of the federal govt.:  Deliver the mail.  Maintain a national military.  Collect taxes & tariffs.  Conduct foreign policy.  Exception  administer the annual Civil War veterans’ pension. Remember: Federal Government Role

National income was 50% of what it had been in out of 4 was unemployed…

 mass consumption declined  unemployment rose  no government assistance at first  productivity was cut back = further unemployment  Additional unemployment = further purchasing power decline = productivity yet again reduced Unemployment Purchasing Power Productivity For the Poor...