1. The Great Depression 1929 - stock market collapsed sent shock waves throughout the world

3. boom-and-bust before the 1930s the American economy was largely unregulated thus it was prone to swings in the Business Cycle

8. lending/borrowing of money many nations borrowed money from the USA when the stock market crashed they could not pay the loans countries adopted high tariff policies to protect their economies this further reduced world trade

9. supply-and-demand global overproduction of food = falling food prices many farmers went bankrupt this harmed the USA and world economies

10. Buying Stocks on Margin people borrowed money to purchase shares in companies when the price of shares went down, they still had to pay back their loan ie. 10,000 shares bought at $1/share cost $10,000 borrow the money to pay. if the share price fell to 1¢/share your stocks would be worth $100 but you’d still owe $10,000

14. Roosevelt’s New Deal a shift to the left government intervention to solve the economic problems caused by the Great Depression Keynesian economics in practice

16. Franklin D. Roosevelt (Theodore Roosevelt’s distant cousin) was president of the United States from 1933-1945 He was the first to implement Keynes's theories in a practical way He implemented massive public works programs to put people to work He called it the “New Deal,” an echo of Theodore Roosevelt’s “square deal.” This represented the beginning of a shift to the welfare state and a mixed economy (capitalism with government intervention) The “New Deal”

17. Prohibition of alcohol in the USA began in 1920 Designed to solve social problems and improve health Created organized crime, bootlegging, illegal speakeasies, dangerous moonshine

18. Speakeasy in Butte Montana

20. FDR and Prohibition repealed in 1933 fight the gangsters

21. A Popular Move Photo shows people lined up to buy liquor licenses in New York City Tax revenue went up in a depression!

22. The Welfare State

25. Alphabet Programs/Agencies EBA CCC TVA NRA SSA

27. http://www.youtube.com/watch?v=qu 2uJWSZkck

28. Emergency Banking Act allowed the government to regulate all banking activities

29. Civilian Conservation Corps employed millions of young Americans in conservation projects like reforestation

30. Tennessee Valley Authority created a series of dams in the Tennessee Valley to provide electricity, flood control, and irrigation

31. National Recovery Authority regulated prices and wages in industry

32. Social Security Act (1935) introduced unemployment insurance and old- age pensions

34. The Depression Years: Canada in the 1930s Read pages 2-11, 26-31, 38-39 1. How did Canadian governments try to deal with the depression? 2. How did some people respond to the government actions? 3. What alternative political parties came about as a result of the depression? What were some of their solutions to the problems of the depression?