The Great DepressionBY: SANDRA HERNANDEZ

Causes of the Great Depression

The Stock Market Crash The stock market crashed was in 1929. On October 29, anxious traders sold off 16,400,000 shares of stock. At the end of the year, the government determined that investors in the market had lost about $40 billion.

2nd Cause

Unequal Distribution Of Income The Top .1% hold

aggregate income equal to

bottom 42% Bottom 71% annual

incomes below $2500 80% of Americans had

no savings at all Expenditures fell by

18% between 1929-1932

3RD Cause

Excessive Buying Of Credit In the 1920s buying credit was a huge

problem. Since the 20s was a period of great economic boom, not many people took the future into consideration. Many people bought many items excessively with money that they did not have. This was called installment buying, with this system people could make a payment on an item in months or years. But in Black Tuesday, when the stock market crashed. Many people were in debt . When many lost their jobs, they could not pay back the debts they had.

4TH Cause Over Production Of Farm

Products The over production of farm

products lead to a drop in Prices. Farm product fell about 40 % in 1920 and 1921, and they remained low through the 1920’s. also bank failure in agricultural areas became more frequent. About 550 banks went out of business. In 1929 the average income for a American family was $750, but for a farm family it was $273.

EFFECTS

HIGH Unemployment

The Great Depression one ion four Americans who wanted to find jobs could not. Millions of workers lost their jobs. Unemployment increased from 1.6 million in 1929 to 13 million unemployed in 1933.

2nd Effect High Bank Failure

After the stock market

Crash, in 1929 600 banks closed. By 1933, 11 thousand of the nations 25 thousand banks had failed. When banks closed the government did not protect or insure banks accounts, millions of people lost their savings accounts.

Policies

Hoovers policy

Hoover believed in “ Rugged Individualism”. The idea that people should succeed through their own efforts . He felt that people should take care of themselves and their families , rather than depending on the government to bail them out.

Oppositions- Opposed federal welfare

2nd policy

Roosevelt Policy

Roosevelt created the New Deal program.

3RS

-relief

-reform

-recovery

The supreme court rejected many of New Deal laws, they thought that they were unconstitutional.

New Deal Program

-CCC

-FERA

-NYA

-EBRA

-FDIC

-AAA

-HOCL

-FHA

-Social Security Organization

THE GREAT DEPRESSION