1. The Great Depression

2. Defining Depression What is an economic depression?

3. The 1920s The 20s were known as the “Roaring 20s” Was a time of peace and prosperity in America. Americans lived and spent like there was no tomorrow.

4. 1920s In Europe Growing consumer culture Entertainment Movies Radio Sports Standard of living increasing “New Woman”

5. Woman voting in Finland (1906)

6. The “New Woman”

9. Economic Weaknesses in Germany Germany & reparations Hyper inflation Dawes Plan

11. Black Tuesday: Stock Market Crashes On October 29, 1929 the Stock Market Crashes. The crash leads to a worldwide depression

12. Causes of Great Depression: 1 Over speculation in the stock market What is a stock? People were buying stock on credit (on margin) in hopes that they would make money to repay. Massive gambling on the stock market made stock practically worthless!!!

13. Causes of the Great Depression: 2 Overborrowing People were buying too much stuff on credit Got to the point that people were in too much debt Businesses were not getting paid, and not making money.

14. Causes of the Great Depression: 3 Overproduction in Factories and Farms Factories and farms were making too much Factories and farmers were losing money and forced to shut down. Unemployment skyrockets

15. Causes of the Great Depression: 4 Uneven distribution of wealth The rich were getting richer, while the poor were getting poorer. Rich were not spending their money, so the flow of money trickled to a halt. Caused money value to inflate

16. Causes of the Great Depression: 5 Failure of Leadership of Governments When crises hit nations, government did not act Governments slashed budgets instead of spending money John Maynard Keynes

17. Causes of the Great Depression: 6 High Protective Tariffs What is a tariff? High tariffs kept American businesses from having to compete with imported goods. Hawley-Smoot Tariff of 1930 Countries retaliated by raising tariffs on the U.S.

18. Impacts of the Great Depression Unemployment increased Homelessness increased Workers became more militant Farmers lost their farms Workers migrated in search for work.