the great depression

« The Great Depression: 1929-1939 1.

A staggering collapse of industry, widespread unemployment, and a nation gripped by uncertainty—the Great Depression remains one of the most transformative periods in American history. The Great Depression, triggered by the U.S.

stock market crash of 1929, lasted until the late 1930s and was the most severe economic downturn in modern history leading to mass unemployment, poverty, and social unrest.

It had far-reaching consequences on economies, societies, and political landscapes across the world and for decades. Causes: Stock Market Crash of 1929 = trigger of the great depression, black tuesday october Speculation and overconfidence → stock prices to unsustainable levels + sudden crash wiped out millions of investors' wealth. Bank Failures After the crash, thousands of banks failed as depositors, fearing for their savings, withdrew funds in a wave of bank runs. Bank failures wiped out savings and reduced access to credit, causing a ripple effect throughout the economy. Reduction in Consumer Spending and Investment With their savings lost or devalued and facing uncertainty, consumers drastically cut back on spending. Businesses, in turn, reduced investment and laid off workers, creating a vicious cycle of declining demand, production, and employment. Collapse of International Trade The Smoot-Hawley Tariff Act (1930) in the U.S.

raised tariffs on imports, prompting other countries to retaliate with their own tariffs. This led to a dramatic decline in international trade, further exacerbating the economic downturn globally. Overproduction in Industry and Agriculture Throughout the 1920s, industries and farms produced more goods than the market could absorb. This led to falling prices and unsold inventories, causing widespread business failures and unemployment. Income Inequality A significant concentration of wealth among a small portion of the population left the majority of Americans with insufficient purchasing power. This imbalance limited consumer spending and weakened the economy. Debt and Credit Crisis In the 1920s, consumers and businesses had taken on significant amounts of debt, often to invest in the booming stock market. When the market crashed and the economy contracted, they were unable to repay their debts, leading to widespread defaults and bankruptcies. Drought and the Dust Bowl In the early 1930s, a severe drought struck the U.S.

Midwest, creating the Dust Bowl → devastated agricultural production, displaced farmers, and added to the economic hardship. The spiral of the Great Depression: 1929, shock Market crisis led to widespread panic and significant financial less: bank failure→ reduc° of consumerism→ business closure→ unemployment. —--->The Great Depression reshaped the United States by altering the fabric of daily life, redefining the role of government, and( economics) The consequences: →Republican Party:( psnt Herbert Hoover) - believe in limited gov intervent° in the economy: “laissez faire” policies: market regulating itself, competition leaads to growth and innovation, failed to provide relief for collapsing economy(no regula°) - focused on individual responsibility and self reliance - socially, they downplayed the severity of the crisis and refused federal aid →Democratic party: (psnt Franklin D.

Roosevelt) - Supported gov interven° to address economic issues - New deal program: crea° of jobs, social support, stabiliza° of eco Economic Effects Massive Unemployment: Unemployment rates in the U.S.

soared to around 25% by 1933.

Globally, millions of workers lost their jobs. Bank + business Failures: Thousands of banks collapsed as panicked depositors withdrew their savings in mass bank runs, wiping out savings and reducing access to credit, further crippling economic activity.

This loss of savings further reduced consumer spending, deepening the economic crisis.

Industrial production fell by nearly 50%, and many businesses, both small and large, went bankrupt. Deflation: Decline in prices of goods and services; leading to a vicious cycle where lower prices reduced company revenues, causing more layoffs and bankruptcies.

As revenues fell, companies were forced to cut wages, lay off workers, or shut down entirely, perpetuating a vicious cycle of declining demand and rising unemployment. Collapse of International Trade: Smoot- Hawley Tariff Act protectionist policies(highest tariffs in history)= many countries made their own tariffs=global trade shrank by 40%, in a few years. Social Effects: The Great Depression dramatically changed the everyday lives of Americans, leading to widespread poverty, displacement, and a redefinition of community support. 1.Widespread Poverty and Homelessness: -The economic hardships of the Great Depression deeply affected society.

Widespread poverty and homelessness became a grim reality for millions.

The decline in living standards led to increased malnutrition and poor health, particularly among children and the elderly. 2.Rural areas, especially those affected by the Dust Bowl,(=forced many families to migrate in search of work/better living conditions.

The Dust Bowl, a series of severe droughts and dust storms that devastated the Great Plains), saw a sharp rise in poverty.

Many families lost their homes and were forced to live in makeshift shantytowns known as "Hoovervilles," named after President Herbert Hoover, who was blamed for the crisis. 3.Soup kitchens and breadlines became common sights, as even the middle class struggled to make ends meet=growing reliance on community Impact on Families: Family structures were strained as traditional roles shifted, birth rates declined (population’s anxiety about bringing children into a world marked by economic insecurity)and many children had to leave school to work or beg. Moreover, men were in the.... »