The Worldwide DepressionThe Worldwide Depression

© 2011 Clairmont Press

OverviewOverview

• When: 1929 - 1936When: 1929 - 1936

• Where: GlobalWhere: Global

• Why: Major downturn in the economy led to Why: Major downturn in the economy led to unemployment, inflation, foreclosures, and poor economic unemployment, inflation, foreclosures, and poor economic decisions by governments.decisions by governments.

• How: Demand for U.S. crops plummeted in the late 1920s, How: Demand for U.S. crops plummeted in the late 1920s, farmers begin to lose farms, banks were forced to take farmers begin to lose farms, banks were forced to take heavy losses and close, people panicked and pulled heavy losses and close, people panicked and pulled investments from companies and the stock market investments from companies and the stock market crashed.crashed.

• Who: Most families were affected in some way by the Who: Most families were affected in some way by the Depression. Some countries had as high as 30% Depression. Some countries had as high as 30% unemployment. In comparison, the unemployment was unemployment. In comparison, the unemployment was considered high in 2010; in the state of Georgia and it was considered high in 2010; in the state of Georgia and it was 10 %.10 %.

CausesCauses• As early as 1926, farmers in the United As early as 1926, farmers in the United

States began losing farms due to falling States began losing farms due to falling demand.demand.

• Banks foreclosed and resold farms and took Banks foreclosed and resold farms and took major losses.major losses.

• After three years of losses, many banks were After three years of losses, many banks were forced to close. forced to close.

• Panic hit the stock market and people pulled Panic hit the stock market and people pulled their money out.their money out.

• Companies were forced to close large Companies were forced to close large factories; banks were forced to close.factories; banks were forced to close.

• A run on the banks led to further panic and A run on the banks led to further panic and people quit spending money. Businesses people quit spending money. Businesses shut down and unemployment skyrocketed.shut down and unemployment skyrocketed.

• The economic shock spread to other The economic shock spread to other countries that relied heavily on the United countries that relied heavily on the United States as a trade partner. States as a trade partner.

• The world entered an economic depression.The world entered an economic depression.

EffectsEffects

• Worldwide, families lose Worldwide, families lose tremendous amounts of money tremendous amounts of money and property.and property.

• People began to search for food.People began to search for food.

• The number of soup kitchens and The number of soup kitchens and unemployment skyrocketed.unemployment skyrocketed.

• Young people were forced to Young people were forced to leave their families to find work.leave their families to find work.

• Some families were forced to live Some families were forced to live in poverty.in poverty.

• Desperation gripped countries, Desperation gripped countries, especially Germany, the United especially Germany, the United States, Canada, and Australia. States, Canada, and Australia.