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The Great Depression

The Great Depression. What caused it?. Great Stock Market crash of 1929 On Black Tuesday, October 29 th after panic selling market fell 89% Our economy had some serious weaknesses such as…. Worldwide price of agricultural good dropped hurting farmers

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The Great Depression

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  1. The Great Depression

  2. What caused it? • Great Stock Market crash of 1929 • On Black Tuesday, October 29th after panic selling market fell 89% • Our economy had some serious weaknesses such as…

  3. Worldwide price of agricultural good dropped hurting farmers • High unemployment in RR, coal, and textile industries • Bank failures because people could not pay back loans

  4. Also… • Unequal distribution of wealth • Excessive buying on credit, then less buying as debt piles up • Business consolidations resulting in just a few large companies in each industry are left vulnerable to failure • Weak banking structure • Weak post war international economy • Inadequate government policies to deal with all of the problems!

  5. The Great Depression • Two Main Causes: • 1. OVERPRODUCTION • 2. UNDER CONSUMPTION

  6. Herbert Hoover 1929-1933 • Tried to restore confidence • Helped businesses in hopes of a “trickle down” effect • Created some public works programs to create jobs

  7. TRICKLE DOWN ECONOMICS GOVERNMENT LOANS TO BUSINESS SO THEY INVEST PLAN TO EXPAND TO CREATE NEW JOBS TO

  8. INCREASE PRODUCTION MORE WAGES IN CIRCULATION DEMAND INCREASES

  9. NO MORE DEPRESSION?! • This failed because… • Businesses were afraid to spend money given to them by the gov’t – therefore no one is hired.

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