1. The Crash and its Solution
1929 Crisis
The Crash and its Solution

2. The USA in the 1920s

3. The USA in the 1920s It was an age of consumerism
There was a desire of enjoying life
Some social groups lived in a situation of poverty:
African-Americans
Women
Farmers

4. The Economic Boom
After WW1 the US was not directly affected and they sold their products
The economic boom affected society
Motor industry grew rapidly

5. The Economic Boom Causes: Isolationism Technology
Out of foreign affaris
High tariffs
Technology
Mass production (automobiles)
Hire purchaseHigher demand for goods
Shares

6. Industry Traditional such as coal and textile did not prosper
As a response to high American tariffs other countries put high tariffs too
Mass production techniques

7. Agriculture Farmers were encouraged to produce more during WW1
After war they continued producing more than what they could sell
Prices dropped

8. Social Problems Few people were extremely rich
42 per cent of population lived below the poverty line

9. Racism There were lots of nationalities
Tolerance began to be under attack
The Ku Klux Klan started in the South but spread to other parts of America

10. Causes of the Depression
The offer was higher than the demand
Too much food was produced
Banks were too small
Speculation on the stock market
Wall Street Crash

11. The Crash
Animation:

12. Effects of the Depression
Unemployment
Industrial production dropped
House-building fell
Banking system collapsed
People death from starvation

13. The New Deal

14. The New Deal: Agencies TVA: flood control and dam building
National Recovery Administration
AAA: solve agriculture problems
CCC: offered jobs for conservation projects
PWA: constructed public buildings

15. New Deal’s Results Possitive:
People trusted businesses again and started investing
Old people and disabled people got pensions
Workers had better wages and more rights
Millions of jobs were created
Industry and agriculture began to recover
FDR won the 1936 election
Roosevelt was very popular
America remained a democracy

16. New Deal’s Results Failures:
Blacks and women did not have equal rights
Many small farmers and city workers especially blacks remained out of work
In 1939 there were 9 million unemployed in America
The Depression did not end until WWII

17. New Deal. Conclusion
There was quite a lot of opposition to the New deal:
Some people said it gave FDR too much power
Republicans said it would make things worse
Southerners said it interfered too much in local government
Businessmen sait it was an attack on free enterprise and made it too hard to make profits
The Supreme Court said some bits of it were unconstitutional