The 1930s / The Great Depression (Chapters 15-16) ODE STANDARD: The Great Depression was caused, in...

The 1930s / The Great DepressionThe 1930s / The Great Depression (Chapters (Chapters 15-16)15-16)

ODE STANDARD: The Great Depression was caused, in part, by the federal government’s monetary policies, stock ODE STANDARD: The Great Depression was caused, in part, by the federal government’s monetary policies, stock market speculation, & increasing consumer debt. The role of the federal government expanded as a result of market speculation, & increasing consumer debt. The role of the federal government expanded as a result of

the Great Depression.the Great Depression.

Causes of the Great Depression: ’20s Boom Stock

Market Crash of 1929 ripple effect

Great Depression, 1929-1941 (What did it “look like”?)

How to combat the Great Depression? - Hoover’s response - FDR’s response, & Effects on USA

POLITICAL SOCIALECONOMIC

CausesRoaring ’20s BOOM

• unequal distribution of income

• personal debt

• risky investment stock market speculation & buying on the margin

• overproduction

• artificially inflated stock prices

• FED limited money supply

• farmers struggling couldn’t pay loans, farms foreclosed by banks

Stock Market Crash, 10/29/29

• 16 million+ shares sold

Ripple effect through economy

• bank runs & bank failures FED did not intervene to help banks (& banks couldn’t lend $$)

• layoffs, less spending, etc…

Great Great Depression, Depression, 1929-19411929-1941

Effects

Economic Activity in the USEconomic Activity in the US

No One Knew It Was Going No One Knew It Was Going To Be THIS Bad To Be THIS Bad

A Normal Business CycleA Normal Business Cycle