The Great Depression
The 1930’s
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.
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
Economics
 A recession is defined as two quarters of
negative economic growth within ones
economy.
 Regulate interest rates
 Fiscal policy
– Tax and spend
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
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
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
Okies
 The thousands of ruined farmers and out of
work small townspeople who migraed from
the drought stricken areas to California.
The New Deal
 FDR and the New Deal
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