The Great Depression

Black Tuesday

• On this day, the Stock market plummeted to death
• In the months before, the Stock Market was at its highest yet
• Then, when everyone was exuberant, it suddenly plummeted 
• Everybody was shocked because they had no clue as to what happened
• The banks and steel industry helped create the crash from foreclosure

Family Matters

• About a

Family Matters

• About a quarter of the US did not have a job 
• Families were forced to live in Shantytowns, also known as Hoovervilles
• Many people did not have jobs because companies could not afford to keep
• workers wages
• Shantytowns were shacks made out of plywood, sheets of plaster, etc.

Roosevelt's New Deal

THE KEYNESIAN ECONOMICS

Keynesian Economics

• Unemployment increased to 25% in US and 33% in the world
• Keynesian: A theory that the inadequate demand lead to the depression
• Advised the gov. to give public jobs and projects
• Redistribution of incomes through a tax policy
• Main goal: to reduce unemployment and increase consumer demand