The Great Depression

Crash of 1929

• On October 24th, 1929 the stock market crashed causing 12.9 million stocks to be sold.
• Businesses began to lay off people and overproduce. Many businesses failed.
• People and businesses lost life savings.
• The crash was the start of the Great Depression.

FAMILIES

• Unemployment rate increased to 25% in 1933.
• More layoffs and jobs became limited and wages were lowered.
• Shanty towns were slum settlements made out of scraps.
• The shanty towns were located in the periphery of the city.

THE NEW DEALS

• Focused on relief, reform, and recovery.
• Keynesian Economics:An economic theory of total spending in the economy and its effects on output and inflation.
• Economy Act cut government funding and funding for government jobs.
• Agriculture Adjustment Act kept farm prices high so the economy would improve.
• Emergency Banking Act made sure people wouldn't lose everything if the Economy were to crash.