1. By:Lauren S., Lauren L., Jenny, Seth, David, and Natalie
The Great Depression
By:Lauren S., Lauren L., Jenny, Seth, David, and Natalie

2. The Great Depression
The Great Depression was a time in which numerous countries experienced a crash of the economy after World War I. Prior to the crash America was in a great threshold. This period spanned the time period
Reading Focus Questions:
1. What happened to the U.S. economy during the 1920s?
2. How did the depression spread throughout the United States.?
3. How did the Depression affect the world?
David

3. The US Economy in the 1920’s
Decade also known as the “Roaring Twenties”
Economy was booming
Unemployment was low
Stock market climbing
Good time for many Americans
Lauren Salvatore

4. Economic Growth Most economic growth occurred in the industry
Automobile manufacturing
American factories made a wide assortment of goods (vacuums, radios, washing machines, etc)
Growth steady throughout most of the 1920’s
Lauren Salvatore

5. Prosperity and the Stock Market
Prosperity: a successful, flourishing, or thriving condition, especially in financial respects
Overall value of the stocks traded at the nation's stock markets rose 400%
The success of the American industry was reflected in the stock markets
Many Americans rushed to buy stocks
Some borrowed money from stock brokers
Increasing investment in the stock market drove stock prices higher
Lauren S. and Lauren L.

6. Hidden Problems New wealth being created was not distributed evenly
The 1% of the population earned 19% of the nation’s income
Easy availability of credit allowed Americans to increase their spending on consumer goods
Many consumers were reaching their limit of their credit and could no longer afford to buy the products that had kept the US economy expanding
Lauren L.

7. The Stock Market Crash
By fall 1929, consumer spending had slowed, and sales suffered
Investors were scared their shares would devalue, and they began to sell of their stocks
This grew to become a huge sell-off as more and more investors joined in (Black tuesday was a major sell-off day)
The stock market crashed, ruining many investors
Banks that had lent money to investors were in financial trouble
The crash severely harmed the already struggling American industry
Lauren L.

8. Black Tuesday- October 29, 1929
On Oct 29 investors sold 16 million shares due to the desperation to sell stocks.
One of the worst days of the sell-off
Investors were selling, but few people wanted to buy stocks
Stocks flooded the markets
Stock prices completely collapsed
Investors forced to sell at a lost in order to repay loans
Jenny Kowalczyk

9. The spread of economic depression
American economy had taken a dive due to multiple factors
The American economy was very complexly connected and intertwined with the European economy
Therefore, when the US economy fell into depression, the European economies would soon follow
European countries were already struggling after WWI
War debts and, in Germany’s case, reparations
Multiple countries in debt to US
When US took a dive it requested the indebt countries to pay, leaving those countries even worse off economically (in some cases even bankrupt)
Jenny Kowalczyk

10. Slowing of Industry
Begun before the crash but worsened quickly after it
As industry slowed, workers lost their jobs, by 1933 one out of every four workers was unemployed
Joblessness and poverty reduced Americans ability to buy food and goods, which hurt industry even more
Banks also suffered
Seth Wilens

11. Governmental Response
U.S. president Herbert Hoover believed that the federal government should have a limited rule in business affairs
He favored a minimal government response to the crisis
Advisers believed the Great Depression was a normal healthy adjustment to an overheated economy
Seth Wilens

12. Franklin Delano Roosevelt
Elected president
Role in the lives of American greatly increased
He pushed forward a program known as the New Deal (aimed at fighting the Great Depression)
Believed that government spending could help start an economic recovery
New Deal established public works programs that gave jobs to the unemployed and provided government money for welfare and other relief programs
Seth Wilens

13. Music-The Blues
The blues is a form of music that developed in the American South in late 1800s.
The type of music evolved from the African American communities.
The blues are sharing sadness and problems
The music spread through the north during the Depression.
Artists: Robert Johnson, nicknamed the grandfather of rock and roll; Bessie Smith one of the most popular blues singers of 1920s &30s
David

14. The New Deal
1932 Franklin Delano Roosevelt took into office and pushed for “The New Deal”
The New Deal was aimed to fight the Great Depression by having the government boosting the economy.
This plan provided new jobs, welfare and a regulation on the stock market
David

15. John Maynard Keynes
John Maynard Keynes is a British economist that had many theories.
He believed that the government could limit or even prevent economic downturns.
The government would use its own money to help get out of the depression.
Factories would hire workers to meet the new demand,providing workers with a steady income, and cause them to spend their earnings;thus the depression would end.
David

16. The World Wide Depression How did the Depression affect the world?
America was one of the world’s leading importers and lenders of money and when the Great Depression started they were not able lend as much which negatively affected other countries, worldwide
Also the reparations from WWI that countries had, caused countries to suffer worldwide and caused many countries to have a bad economy
Political Impact
After WWI the government was struggling
In countries extremist political groups gained strength as economics worsened, causing the people to suffer from the leaders radical decision.
Natalie Fitzpatrick

17. Smoot-Hawley Tariff Act, President Hoover
This act placed heavy taxes on imported goods in an attempt to encourage Americans to buy goods & products in the US
This made the Great Depression much worse in the US
Even though many people did not like the Tariff Act, President Hoover signed it anyways
Natalie Fitzpatrick

18. Conclusion to the Great Depression
The Great Depression served as a major source of suffering, hardship and political instability for the people of America as well as Europe. The depression affected other nations in the world by slowing down trades, changing the tax prices on imported and exported goods and causing extreme inflation. The Great Depression pushed citizens to the point of desperation for leadership and help. This desperation and misery created the perfect situation for powerful rulers, such as HItler, to take advantage of the people and come to power.
Jenny Kowalczyk

19. The Great Depression: Recap Video