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THE GREAT DEPRESSION OF 1930s

THE GREAT DEPRESSION OF 1930s. INTRODUCTION. A severe worldwide  economic depression Started in 1930 and lasted until the late 1930s or middle 1940s Example of how far the world's economy can decline.

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THE GREAT DEPRESSION OF 1930s

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  1. THE GREAT DEPRESSIONOF1930s

  2. INTRODUCTION • A severe worldwide economic depression • Started in 1930 and lasted until the late 1930s or middle 1940s • Example of how far the world's economy can decline. • Terrible conditions which occurred in the United States and the rest of the world in the 1930's

  3. CONT. • The depression originated in the U.S., after the fall in stock prices that began around September 4, 1929 • Became worldwide news with the stock market crash of October 29, 1929 • Known as Black Tuesday,  official beginning of the Great Depression

  4. CONT. • Not only an economic catastrophe, it was social and political catastrophes as well. • An immense tragedy that placed millions of Americans out of work

  5. CONT. • The Great Depression was probably the lowest point in American economic history • It had devastating effects on the country • Most of the world was hurt economically at the time

  6. REASONS 1. STOCK MARKET • Investment pattern in 1920s • People used credit to invest • Investment in worthless companies • lots of people sold stock quickly • The prices went down fast, and almost everybody lost money.

  7. 2. BANK FAILURE • 9,000 banks failed • Bank deposits were uninsured • People simply lost their savings. • Surviving banks, unsure of the economic situation  • Stopped to create new loans

  8. 3. REDUCTION IN PURCHASE • Individuals from all classes stopped purchasing items • led to a reduction in the number of items produced • A reduction in the workforce • Unable to pay for installment and their items were repossessed. • Unemployment rose

  9. 4.ECONOMIC POLICY • The government created the Smoot-Hawley Tariff Act. • Protect American companies and farmers. • Charged a high tax for imports • Less trade between America and foreign countries • Economic retaliation.

  10. 5. THE DUST BOWL • Not a direct cause of the Great Depression • Occurred in the Mississippi Valley in 1930 • Many could not even pay their taxes or other debts • Sold their farms for no profit to themselves • It was known as “The Dust Bowl”

  11. IMPLICATIONS • 13 million people, were unemployed in 1932 (3% to 25% in 1932) • People were homelesss. • Many companies went out of business, and by 1933 • One out of every four people in America had lost his or her job. • Farmers not able to sell their produces

  12. CONT. • Political instability in many nations • Caused the fall of the Weimer Republic in Germany and rise of Adolf Hitler and National Socialism • Lead to World war II • Failure of capitalism worldwide and the growth of Communism • GNP fell by 50% between 1929-32

  13. BUSINESS REVIVAL • President Roosevelt : The New Deal 1933. • Programs helping Farmers • AAA (Agricultural Adjustment Administration) CCC (Civilian Conservation Corps) WPA (Works Progress Administration) • U.S. into World War II ; ended the Great Depression in the United States.

  14. THANK YOU!!

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