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.

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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