The Great Depression

Of the 1930s 1929-1940

The turn
End of I WW : new era of optimism in the US Invention of radio, tractors and airplanes Flappers became the model of new women Renewed confidence in production Savings and heavy investments in stocks Stocks soared in 1925; Everyday richness: Heavy short term investments Buying on margin: with just 10-20% payment A risky venture If the price fell lower than the loan amount: margin call
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 When the price started falling : margin calls were issued Panic stuck Steel production went down, construction slowed, car sales fell. Oct 24, 1929: Black Thursday: 12.9 million shares were sold

The beginning
October 29, 1929: Crash of the stock market Stock prices plummeted: no hopes of recovery Banks who had invested heavily in the stocks were forced to close Panic and heavy withdrawals Business and Industry were badly affected Loss of capital
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Cut in wages and work hours Unemployment Lack of spending by consumers No demand for products

Unfortunate co-incidence of dust storms

Usually farmers are safe during depression Unfortunate occurrence of dust bowl in many parts of US Crop loss left farmers without employment Tractor invention: huge debts: Existing banks foreclosure Heavy migration of people to California Blame to president Hoovers for negligence
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 President Roosevelt won with a thumping majority in 1932 A New Deal AAA (Agricultural Adjustment Administration), CCC (Civil conservation corps), WPA (Works Progress Administration)

Major turnaround
Bombing of Pearl Harbor and entrance of the US in the world war II Heavy defense expenses and employment End of Depression with the War!!!!

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