1. The Great Depression: A Global Phenomenon
What caused the Great Depression and how did it spread to other areas?

2. Causes of the Depression: WW1
After the war, many countries were bankrupt.
Furthermore, many countries had lost significant numbers of their prime workers (men 18-50)
Unemployment was fairly high after the war.
Food Shortages were common

3. Causes of the Depression: Treaty of Versailles
After WW1 Germany was bankrupt
The Treaty demanded that Germany make reparations payments to help rebuild Europe
They borrowed money from the US to fund these payments, and eventually stopped paying altogether
Many European countries planned their economics around these payments

4. Hyperinflation in Germany

5. Causes of the Depression: Globalization
Since the time of European imperialism, a global economy had been emerging
With the economic troubles in Europe, they slowed their investment in foreign economies.
This caused other countries, especially in the Americas to see a slowdown in their own economies.

6. Causes of the Depression: Market Crash of 1929
As early as September, people were afraid the stock prices would go down
They began to sell their stocks
On October 29, 1929, the US stock market crashed, because many people were selling off their stocks
This caused a run on the banks where people were trying to get their money
This caused many banks to go out of business

7. Percentage of Labor Force
Unemployment:
Year
Population
Labor Force
Unemployed
Percentage of  Labor Force
1929
88,010,000
49,440,000
1,550,000
3.14
1931
90,710,000
50,680,000
8,020,000
15.82
1933
92,950,000
51,840,000
12,830,000
24.75
1935
95,460,000
53,140,000
10,610,000
19.97
1937
97,870,000
54,320,000
7,700,000
14.18
1939
100,360,000
55,600,000
9,480,000
17.05
1941
102,700,000
57,530,000
5,560,000
9.66
As the economies slowed, people lost their jobs
As unemployment went up, more people lost their job
By 1933, American unemployment was almost 25%

8. A New Deal: Roosevelt
In 1933, Franklin Roosevelt was elected president
100 days: Roosevelt launches the “New Deal”
-Creates government programs
-Employs millions
-Stimulates the economy
-Very controversial today, but not then
Roosevelt becomes one of our greatest presidents