1. DOUG STANWIENS BOISE HIGH SCHOOL FOR THE IDAHO ACADEMIC DECATHLON THE GREAT DEPRESSION: causes and effects

2. THE GREAT DEPRESSION: 1929-1939 Dorthea Lange’s Migrant Mother and Bread Line

3. THE GREAT DEPRESSION There were numerous causes of the Great Depression Unemployment was the most “visible” symptom The Works Progress Administration (WPA) was an attempt to solve unemployment Idaho received direct assistance from the WPA

4. HOW DO WE KNOW IF WE’RE IN AN ECONOMIC “DEPRESSION”? CAUSES OF THE GD EVERYTHING GOES DOWN!

5. Gross Domestic Product

6. Dow Jones Industrial Avg

7. Farm Prices (Deflation)

8. Ok, Unemployment Rate goes up!

9. So What Is a “Recession/Depression?” Recession is defined as 2 consecutive quarters (6 months) of falling GDP Some prefer an increase in the Unemployment rate of 1.5% or more A Depression is a drop in GDP of over 10% or A two year recession In the 19 th century, Americans called these “economic panics” President Hoover didn’t like “panic” so he used “depression”

10. So What Caused the Great Depression? Check with your neighbor……… Did you say “The stock market crash”?

11. So What Caused the Great Depression? Stock Market Crash of ‘29-’33? Bank Failures? Int’l Debt Crisis? Farm Crisis? Lack of Industrial Diversification? Maldistribution Of Income? Smoot- Hawley Tariff? Asset Bubbles? Declining Money Base?

12. Int’l Debt Crisis: Check out this mess! American Banks Britain/ France Germany WWI Reparations Repay WWI loans Loans to Germany for reparations Deposits at U.S. banks

13. Yikes! Does it matter WHAT caused the GD? The causes determine the solutions/fixes Post Depression economics has been organized based on 2 different theories about the causes:  Keynsian Theory focuses on under consumption  Monetarist Theory focuses on monetary contraction

14. We Know the Effect of the Great Depression 19291933 Banks in operation25,56814,771 Prime interest rate5.03%0.63% Volume of stocks sold (NYSE)1.1 B0.65 B Privately earned income$45.5B$23.9B Personal and corporate savings$15.3B$2.3B The Depression's impact on the economy Historical Statistics of the United States, pp. 235, 263, 1001, and 1007.