The Great Depression

1. The Great Depression

2. The Depression • The Wall Street stock-market crash of 1929 precipitated the Great Depression, ___________________________ ________________________________. The depression had devastating effects on the country. Many banks couldn't continue to operate. Farmers fell into bankruptcy. A quarter of the working force, or _______ __________________________________________, and this was only the beginning. The depression lasted over a decade, with hundreds of thousands of Americans losing their jobs, businesses failing, and financial institutions collapsing.

3. How it happened Firms cut back their plans for further purchase of producer durable goods (materials); firms making producer durables cut back production; out-of-work ___________________________________________________________________________________________), and firms making consumer durables faced falling demand as well.

4. Work cycle in U.S. • Workers were idle because firms would not hire them to work their machines; firms would not hire workers to work machines because they saw no market for goods; and __________________________________________ ______________________________________________.

5. In a nut shell…. • The Depression became a worldwide business slump of the 1930's that affected almost all nations ________________________________________ ________________________________________________________________________________________________________________________________. Some nations changed their leader and their type of government. In Germany, poor economic conditions led to the rise to power of the dictator Adolf Hitler. The Japanese invaded China, developing industries and mines in Manchuria. Japan claimed this economic growth would relieve the depression. This militarism of the Germans and Japanese eventually led to World War II (1939-1945).

6. In a nut shell… • In the United States, President Herbert Hoover held office when the Great Depression began. The economy continued to slump almost every month. Franklin D. Roosevelt was elected President in 1932. Roosevelt's ____________________ gave the government more power and helped ease the depression. ______________________________ ___________________________________________________________________. This increased production provided jobs and put large amounts of money back into circulation.

7. Why did the world experience depression in the 1930’s? • Causes of worldwide depression: • ___________________________ • Expansion of production capacities and dominance of the United Sates in the global economy • High protective tariffs • ______________________________ • Stock Market Crash (1929)

8. What political changes resulted from the worldwide depression? • Impact of world depression • _____________________________________________ • Bank failures and collapse of credit • __________________________________________ • Nazi Party’s growing importance in Germany; Nazi Party’s blame of European Jews for economic collapse

9. Key Terms • Stock Market • “Black Thursday” • Welfare and Public Works • Franklin D. Roosevelt—”New Deal”

10. Essential Understanding • A period of uneven prosperity in the decade following World War I (1920’s) was followed by worldwide depression in the 1930’s. Depression weakened Western democracies, making it difficult for them to challenge the threat of totalitarianism. • Totalitarianism: _______________________________________ _____________________________________________________________________________________. This gov’t seeks to control all economic and political matters, the attitudes, values, and beliefs of its population, erasing the distinction between state and society. The citizen’s duty to the state becomes the primary concern of the community, and the goal of the state is the replacement of existing society with a perfect society.