The 1930s / The Great Depression (Chapters 15-16) ODE STANDARD: The Great Depression was caused, in part, by the federal government’s monetary policies,

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Presentation transcript:

The 1930s / The Great Depression (Chapters 15-16) ODE STANDARD: The Great Depression was caused, in part, by the federal government’s monetary policies, stock market speculation, & increasing consumer debt. The role of the federal government expanded as a result of the Great Depression. Causes of the Great Depression: ’20s Boom  Stock Market Crash of 1929  ripple effect Great Depression, (What did it “look like”?) How to combat the Great Depression? - Hoover’s response - FDR’s response, & Effects on USA POLITICAL SOCIAL ECONOMIC

Causes Roaring ’20s BOOM unequal distribution of income personal debt risky investment  stock market speculation & buying on the margin overproduction artificially inflated stock prices FED limited money supply farmers struggling  couldn’t pay loans, farms foreclosed by banks Stock Market Crash, 10/29/29 16 million+ shares sold Ripple effect through economy bank runs & bank failures  FED did not intervene to help banks (& banks couldn’t lend $$) layoffs, less spending, etc… Great Depression, Effects

Economic Activity in the US

No One Knew It Was Going To Be THIS Bad

A Normal Business Cycle