Great Depression

Crash of 1929

• The stock market lost 11% of its value
• This marked the beginning of the Great Depression

FAMILIES

• The Great Depression was a worldwide economic crisis that in the United States was marked by widespread unemployment, near halts in industrial production and construction, and an 89 percent decline in stock prices.
• 25% was the lowest unemployment rate in the U.S.
• Shantytowns were made up of a community of families living in cardboard boxes or other makeshift homes

NEW DEAL

• Keynesian economics is the view that in the short run, especially during recessions, economic output is strongly influenced by aggregate demand.
• That is Relief for the unemployed and poor
• Recovery of the economy to normal levels
• Reform of the financial system to prevent a repeat depression
• Agricultural Adjustment Act (AAA), passed in 1933, accepted the long-held premise that low farm prices resulted from overproduction.