1. The Great Depression
The 1930’s

2. Overview of the Great Depression
The Great Depression was a severe worldwide economic depression in the decade preceding World War II.
______________
It was the longest, most widespread, and deepest depression of the 20th century, and is used in the 21st century as an example of how far the world's economy can decline.
The depression originated in the United States, starting with the ___________________ of October 29, 1929 (known as Black Tuesday), but quickly spread to almost every country in the world.

4. Causes of the Great Depression
1929
Stock market crash
Bank failure
Federal reserve contracts money supply
Shrunk the money supply which thus exacerbated the already volatile economy
Britain returns gold standard to pre WWI
______________
Protectionist policies

6. Economics
A recession is defined as two quarters of negative economic growth within ones economy.
Regulate interest rates
Fiscal policy
Tax and spend

7. Supply and Demand Business cycle (cyclical trends of the market)
John Maynard Keynes (Keynesian economics)
During times of depression, in order to stimulate the economy, the government must either
Increase spending
Decrease taxing
Laissez-faire capitalism

11. The Depression and the US
_____________
Individuals defaulting on _____________
Herbert Hoover
Hawley-Smoot Tariff Act (1930)
Seriously affected the depression
Increased tariffs on imports and vastly influenced international trade
Intended to encourage the _____________ of American made products
Lead to other countries placing heavy tariffs on American made goods

12. Hoovervilles
A hooverville was the popular name for the ________________ built by homeless people during the Great Depression.
Federal Home Loan Bank Act
Hoovers response to the housing crisis
Emergency Relief Construction Act
Provided funds for public works programs

14. Okies
The thousands of ruined farmers and out of work small townspeople who migraed from the drought stricken areas to California.

15. The New Deal
FDR and the New Deal

16. Effects of the Great Depression
Most countries set up _________________
Political change
People turned toward demagogues in extreme circumstances
Adolf Hitler
Set the stage for WWII