the great depression occurred from 1929 to 1941. it was a severe economic downturn, and millions of...
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The Great Depression occurred from 1929 to 1941. It was a severe economic downturn, and millions of people were unemployed. It was caused by several factors, including the stock market crash of 1929.
FOCUS
Longest economic depression in U.S. history
Eventually, the government took a more active role in the economy
The depression did not end until the U.S. entered World War II in 1941.
THE GREAT DEPRESSION 1929-1941OVERVIEW
The immediate cause of the Great Depression was the stock market crash in October 1929
CAUSES OF THE GREAT DEPRESSION
Why did the stock market crash?
1. Over-speculation of stocks
People invested in the stock market because it was making a lot of money
Stock prices were higher than their actual worth
CAUSES OF THE GREAT DEPRESSION
2. Buying stocks on margin
Lack of regulation allowed people to buy stock on margin
Paid for a small % of the stock, then took out a loan for the rest
When the market crashed, loans were not paid off
CAUSES OF THE GREAT DEPRESSION
1. What was the immediate cause of the Great Depression in 1929?
2. Discuss two other causes of the Great Depression.
DO NOW
Other causes of the Great Depression:
1. High tariffs led to little international trade
2. High disparity between the rich and poor
CAUSES OF THE GREAT DEPRESSION
3. Overproduction of consumer and agricultural goods
As prices fell, farmers kept producing more to try to keep their revenues up
As a result, prices fell further
Farmers experienced the problems of the Great Depression before the rest of the country
CAUSES OF THE GREAT DEPRESSION
4. The Dust Bowl
overproduction and overuse of land led to the destruction of crops
The Dust Bowl spread over much of the Great Plains
CAUSES OF THE GREAT DEPRESSION
THE DUST BOWL
THE DUST BOWL
Many farmers went west to California to work as migrant farmers
They became known as Okies and were often unwelcome in California
THE DUST BOWL
The Great Depression led to massive unemployment throughout the United States
At its height, 25% of Americans were unemployed
Many more were underemployed
THE GREAT DEPRESSION
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