THE GREAT DEPRESSION

CRASH OF 1929

• Initially after WWI, U.S enjoyed economic boom with high production and consumption
• October 1929: Worldwide economic slowdown began; investors pulled out from market
• October 24, 1929 (Black Thursday): Stock prices plummeted
• Crash was due to panic concerning the New York Stock Exchange
• Drastic decrease in business activity&consumer demand;Cutback in production and employees

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FAMILIES

• 1933: Unemployment rate reached 30 million (5 times higher than before)
• Many men and women lost their jobs and experienced a decline in wages
• Unemployment rate during the Great Depression was 25% in U.S and 33% in other countries
• Shantytowns comprised of crudely built houses to provide shelter for millions of people
• Suicidal rates increased drastically and opportunities for women decreased

THE NEW DEAL

• John Maynard Keynes: influential economist in 20th century, theorized about the Great Depression
• Stated problem of depression as lack of employment and the cause as inadequate demand
• Urged gov. to stimulate economy by encouraging investment and increasing money supply
• President Roosevelt promoted provision of jobs and farm subsidies, social security, etc to recover
• Programs such as WPA and CCC were established to stimulate economy&provide public work relief