THE GREAT DEPRESSION

THE CRASH

• October 24th, 1929
• Black Thursday
• The day the stock market crashed
• Stock prices dropped, investors lost life savings
• Lenders called back loans, businesses went down

FAMILIES

• Millions struggled to survive
• Marriage and birth rates declined
• Increased social gaps and hatred
• 35% unemployment by 1935, drop in wages
• Shantytowns were clusters of homeless people, for makeshift homes

THE NEW DEAL

• President Franklin D. Roosevelt
• Protected banking systems
• Massive public works
• Farm subsidies
• Established minimum wage, social security, and work unions

KEYNESIAN ECONOMICS

• Capitalism stands by itself, no regulations
• Problem was lack of demand
• Argued that governments should help stimulate economy