The Great Depression
Sequence of Events
The Great Depression
• What caused the
great depression?
• What perpetuated it?
I. Pre-Conditions
• Uneven distribution of wealth
(20’s)
• Global depression following WWI
• Unsafe business practices
– $ 7 B in credit purchases - 1929
• What is buying on margin?
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II. Depression Progression
1) Black Thursday
a) March 29th – 1929
2) Buyers lost $$
3) Massive Bank
withdrawals
4) Banks close,
uninsured
a) no FDIC
5) People lose savings
II. Depression Progression
6) People stop spending $$$ (↓ Demand)
7) Businesses Fail
8) Unemployment
a) 1.5 M -1929
b) 15 M - 1933
II. Depression Progression
9) Conditions worsen
a) Coolidge on
Depression:
b) “When more and more
people are thrown out of
work, unemployment
results.”
c) “This country is not in
good condition”
10) Economists
unprepared
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III. Rural Effects
•
How did the Great Depression effect
people living in rural areas?
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Poor Markets
Bad Weather
Dust Bowl
Urban Migration
– 400,000 farm foreclosures 1929-1932
IV. Urban Effects
•
How did the Great Depression effect
people living in urban areas?
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Hoovervilles
Vets Bonus Army
Unemployment
1928-1932 Suicide Rate up 30%
V. Providing Aid
1) Hoover ~ Rugged
Individualism
necessary
2) Public Works projects
a) $800 M
b) Hoover Dam
3) Hoover blamed for
Depression, loses 1932
election to FDR.
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VI. Last Word
• What will prevent this from happening
again?
• To what degree is the federal government
responsible for the welfare of the people?
FDR vs. Taft
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