THE GREAT DEPRESSION

CRASH OF 1929

• On October 24th, 1929 the stock market crashed.
• The "crash" put many unemployed.
• Large businesses crashed.
• lost much of their own capital in bank closure.
• The "crash" set the beginning of the Great Depression.

Families

• Many people were left unemployed.
• Wages plummeted.
• The uneployment rate was 30% of the population.
• Industrial production also plummeted.
• The Shantytowns were comprised of crudely built houses where most of the poor lived.

THE NEW DEAL

• The New Deal were ambitious programs to better America.
• Groups include: AAA, PWA, SSA, CCC

Keynesian Economics

• Founded by the economist, John Maynard Keynes
• Establish public policies to achieve full employment through the government.
• too much saving and not even consumption and spending can be bad for the economy