The Great Depression
Economic Factors that Resulted in the
Great Depression
• Not caused by one factor, but many.
• A series of other factors led to the continuation of a worldwide depression for almost a decade.
• Stock Market Crash
• Bank Failures
• Reduction in Purchasing
• Overproduction of Agriculture Products
Stock Market Crash
• GA - already suffering from a depression due to the boll
weevil and drought, the economic boom experienced by the
rest of the United States ended with the Stock Market Crash
of 1929.
• Stock-holders lost over 40 billion dollars
• Businesses were never able to recover from these losses
throughout the 1930s.
Bank Failures
• During the 1920s and 1930s there was no insurance
protecting deposits.
• Bank Run: Customers tried to withdraw their money, the bank
would eventually run out (Bank Failure).
• After the stock market crash this actually happened and many
banks failed in the early 1930s.
• Many lost their life savings.
• Banks remaining open - hesitant about making loans, slowing
down purchasing power of big business & individual
Reduction in Purchasing Power
• The average consumer stopped purchasing goods.
• When people stopped buying products, companies in turn
lowered their production rates.
• With lower production rates, many consumers lost their jobs
and had no money to spend.
Overproduction of Agriculture Products
• Before the droughts causing the Dust Bowl, many farmers
over-produced.
• Led to a tremendous drop in the price of agricultural products
and limited the profit margins of farmers.
• Farmers began destroying much needed food or stopped
growing crops all together in order to raise the price of
agricultural products.
• However, A major drought hit in the 1930s driving thousands
of farmers from their homes adding to the millions of
Americans already out of work.
GPS Georgia Stories: “The Great Depression”
http://www.gpb.org/georgiastories/stories/great_depression
GPS Georgia Stories: “Depression Era Hobo”
http://www.gpb.org/georgiastories/stories/depression_era_hobo
Assignment / Activity
• You will create a Web
Effect
on GA
or US
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on GA
or US
Factor
2
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1
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on GA
or US
Effect
on GA
or US
• The center will have the title of
“The Great Depression”
Great
Depression
• Then add the four (4) factors
that led to the Great depression.
• Then add 2-3 effects on GA or
the US for each of the four (4)
factors.
Effect
on GA
or US
Effect
on GA
or US
Effect
on GA
or US
Effect
on GA
or US
• Use this web as a starting point
Effect
on GA
or US
Factor
4
Effect
on GA
or US
Factor
3
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on GA
or US
Effect
on GA
or US