THE GREAT DEPRESSION

The Crash of 1929

• Experts believed that stocks were overvalued
• Leading investors to pull out of market
• Many lost their life savings
• The Banks had invested many customers' money
• The stock prices plummeted, people could not repay

BUSINESSES/JOBS/Family

• Sharp Decrease in wages, employment, business
• Not enough demand to sell inventory
• Unemployment rate reached 25%
• Employment contributed to further demand downfall
• "Shantytowns" built to home families who became homeless

THE NEW DEAL's Goals

• Stabilize banks and industry by providing federal money
• Create jobs in any way possible (also supported unions)
• Invest in public facilities, such as highways, schools, and parks
• Build the foundation for a great society

Keynesian Economics

• The idea that when spending a increase, earnings also increase
• The foundation behind The New Deal
• Keynes believed that when one person spent money, that went towards another's earning
• Explained the reason for The Great Depression
• Also supported less wealthy populations, as they are more likely to spend money