1. The Great Depression (1929-1939)

2. I) The Market Crashes Oct. 24, 1929 the NYSE had the greatest one day loss in history. A) The unregulated market allowed people & banks to buy on “margin” B) Increasing gap between rich and poor C) High US tariffs discourage international trade D) Massive overproduction caused a collapse in prices.

3. II) Crash leads to Depression A) Most banks had invested in the stock market with low reserve requirements B) Collapse of US economy leads to collapse in world economy

4. III) The Damage is done A) Unemployment & Poverty skyrocket B) Deflation drops wages and increases debt. C) No capital to invest D) No demand to sustain businesses (The Downward Spiral)

5. IV) Economics affects Politics A) Huey Long begins “share the wealth” program B) Charles Coughlin criticizes Roosevelt for not going far enough. C) Communist Party membership increases D) Democracies crumble all over Europe (Germany, Italy, Spain, Portugal)

6. V) Relief, Reform & Recovery A) FDIC insures all bank accounts B) SEC & FTC regulate stock market C) Social Security helps seniors D) NLRB created to negotiate between labor and business E) WWII creates demand for munitions. Pulls us out of Great Depression