1930, The Great Depression

BY JIMMY MODY

What is Depression?
DEPRESSION MAY BLUE, UNHAPPY, DUMPS. MOST OF OR ANOTHER FOR BE DESCRIBED AS FEELING SAD, MISERABLE, OR DOWN IN THE US FEEL THIS WAY AT ONE TIME SHORT PERIODS.

TRUE CLINICAL DEPRESSION IS A MOOD DISORDER IN WHICH FEELINGS OF SADNESS, LOSS, ANGER, OR FRUSTRATION INTERFERE WITH EVERYDAY LIFE FOR A LONG PERIOD OF TIME

 Depression: When you lose your job.What makes a Depression Great?  Recession: When your neighbor loses his or her job. .

THE NATION S SICK ECONOMY 1920 s Scenario As the 1920s advanced. serious problems threatened the economy while Important industries struggled. including:         Agriculture Railroads Textiles Steel Mining Automobiles Housing Consumer goods .

FARMERS STRUGGLE  No industry suffered as much as agriculture  During World War I European demand for American crops soared  After the war demand plummeted  Farmers increased production sending prices further downward .

stagnant wages and overbuying on credit were to blame  Most people did not have the money to buy the flood of goods factories produced . American consumers were buying less  Rising prices.CONSUMER SPENDING DOWN  By the late 1920s.

GAP BETWEEN RICH & POOR  The gap between rich and poor widened  The wealthiest 1% saw their income rise 75%  The rest of the population saw an increase of only 9%  More than 70% of American families earned less than $2500 per year Photo by Dorothea Lange .

Smith in the 1928 election  Hoover emphasized years of prosperity under Republican administrations  Hoover won an overwhelming victory .HOOVER WINS 1928 ELECTION  Republican Herbert Hoover ran against Democrat Alfred E.

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THE STOCK MARKET  By 1929. many Americans were invested in the Stock Market  The Stock Market had become the most visible symbol of a prosperous American economy  The Dow Jones Industrial Average was the barometer of the Stock Market s worth  The Dow is a measure based on the price of 30 large firms .

STOCK PRICES RISE THROUGH THE 1920s  Through most of the 1920s. 4 million Americans owned stocks New York Stock Exchange . stock prices rose steadily  The Dow reached a high in 1929 of 381 points (300 points higher than 1924)  By 1929.

problems with the economy emerged  Speculation: Too many Americans were engaged in speculation buying stocks & bonds hoping for a quick profit  Margin: Americans were buying on margin paying a small percentage of a stock s price as a down payment and borrowing the rest The Stock Market s bubble was about to break .SEEDS OF TROUBLE  By the late 1920s.

THE GREAT DEPRESSION  The Stock Market crash signaled the beginning of the Great Depression  The Great Depression is generally defined as the period from 1929 1940 in which the economy plummeted and unemployment skyrocketed  The crash alone did not cause the Great Depression. but it hastened its arrival .

Bank Failures 3. Stock Market Crash of 1929 2. Reduction in Purchasing Across the Board 4. Drought Conditions .Top 5 Causes of the Great Depression 1. American Economic Policy with Europe 5.

the market took a plunge . now known as Black Tuesday.the worst was yet to come On October 29. the bottom fell out 16.4 million shares were sold that day prices plummeted People who had bought on margin (credit) were stuck with huge debts . .THE 1929 CRASH  In September the Stock Market     had some unusual up & down movements On October 24. .1.

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People default on loans (Can t pay Back) c.000 in 1929 to 10. because it was lent out to bad creditors Number of banks fell from 25. People loose entire LIFE SAVINGS . Banks cannot cover their deposits.2.000 by 1934 d. Banks close and loose $$$ b. Bank Failures a.

People Default on Loans + Banks have no money to give people Banks Close = People Loose savings .

Commercial Bank Failures. 1920-2004 4500 4000 3500 3000 2500 2000 1500 1000 500 0 19 20 19 25 19 30 19 35 19 40 19 45 19 50 19 55 19 60 19 65 19 70 19 75 19 80 19 85 19 90 19 95 20 00 .

. they were unable to keep up with paying for items they had bought through installment plans and their items were repossessed.  The unemployment rate rose above 25% which meant. even less spending to help alleviate the economic situation.  As people lost their jobs.3. of course. Reduction in Purchasing Across the Board  Individuals from all classes stopped purchasing items.  Reduction in the number of items produced and thus a reduction in the workforce.

American Economic Policy with Europe  The U. industry yet had the opposite effect  Other countries enacted their own tariffs and soon world trade fell 40% HAWLEY-SMOOT TARIFF . history called the HawleySmoot Tariff  It was meant to protect U.S. Congress passed the toughest tariff in U.4. was not the only country gripped by the Great Depression  Much of Europe suffered throughout the 1920s  In 1930.S.S.

exposing sand and grit  The resulting dust traveled hundreds of miles  One storm in 1934 picked up millions of tons of dust from the Plains an carried it to the East Coast Kansas Farmer. Drought conditions THE DUST BOWL  A severe drought gripped the Great Plains in the early 1930s  Wind scattered the topsoil.5. 1933 .

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many people developed habits of savings & thriftness .EFFECTS OF DEPRESSION  Suicide rate rose more than 30% between 1928-1932  Alcoholism rose sharply in urban areas  Three times as many people were admitted to state mental hospitals as in normal times  Many people showed great kindness to strangers  Additionally.

SUCH AS THE CCC (CIVILIAN CONSERVATION CORPS) AND THE WPA (WORKS PROGRESS ADMINISTRATION). ATTEMPTED TO HELP CURB UNEMPLOYMENT BY HIRING PEOPLE FOR VARIOUS PROJECTS. SOME OF THESE PROGRAMS WERE AIMED AT HELPING FARMERS. . LIKE THE AAA (AGRICULTURAL ADJUSTMENT ADMINISTRATION).Roosevelt and the New Deal PRESIDENT ROOSEVELT TOOK OFFICE CLOSED ALL THE BANKS AND ONLY LET THEM REOPEN ONCE THEY WERE STABILIZED. ROOSEVELT BEGAN TO ESTABLISH PROGRAMS THAT BECAME KNOWN AS THE NEW DEAL. THESE NEW DEAL PROGRAMS WERE MOST COMMONLY KNOWN BY THEIR INITIALS. WHILE OTHER PROGRAMS. WHICH REMINDED SOME PEOPLE OF ALPHABET SOUP.

INTO WORLD WAR II THAT ENDED THE GREAT DEPRESSION IN THE UNITED STATES. IT IS UNCERTAIN AS TO HOW MUCH ROOSEVELT'S NEW DEAL PROGRAMS HELPED TO END THE GREAT DEPRESSION. HE NEW DEAL PROGRAMS EASED THE HARDSHIPS OF THE GREAT DEPRESSION.S. HOWEVER. . ECONOMY WAS STILL EXTREMELY BAD BY THE END OF THE 1930S.The End of the Great Depression PEOPLE BELIEVED THAT PRESIDENT ROOSEVELT CARED DEEPLY FOR THE COMMON MAN AND THAT HE WAS DOING HIS BEST TO END THE GREAT DEPRESSION. IT WAS ULTIMATELY THE ENTRANCE OF THE U.S. THE U.

EXPORTS AND IMPORTS FELL DRASTICALLY CRIPPLING SEABORNE INTERNATIONAL TRADE. THE GREAT DEPRESSION AND THE ECONOMIC POLICIES OF THE GOVERNMENT OF BRITISH INDIA WORSENED THE ALREADY DETERIO RATING INDO-BRITISH RELATIONS. WHEN THE FIRST GENERAL ELECTIONS WERE HELD ACCORDING TO THE GOVERNMENT OF INDIA ACT 1935. WHICH WAS THEN UNDER THE BRITISH BENEFICIAL TO THE UNITED KINGDOM.Great Depression in India THE GREAT DEPRESSION OF 1929 HAD A VERY SEVERE IMPACT ON INDIA. THE RAILWAYS AND THE AGRICULTURAL SECTOR WERE THE MOST AFFECTED. DURING THE PERIOD 1929 1937. CAUSED GREAT DAMAGE TO THE INDIAN ECONOMY. ANTI-BRITISH FEELINGS RESULTED IN THE INDIAN NATIONAL CONGRESS WINNING IN MOST PROVINCES WITH A VERY HIGH PERCENTAGE OF THE VOTE SHARE .

THANK YOU .

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