THE GREAT DEPRESSION

CRASH OF 1929

• "Black Thursday"
• NYSE investors dumped $13 mil. shares.
• Stock values plummeted.
• Lenders began to call in loans, so investors had to do whatever they could to sell.
• Thousands lost their life savings.

Families

• The economic decline caused many businesses to lay off employees.
• Many people lost their jobs.
• The unemployment rate jumped to 24.9% in 1933 (at its highest).
• Shantytowns - dilapidated slums where the former working class was forced to live.

The New Deal

• PWA created to organize and provide funds for public offices, etc.
• Many unemployed people found jobs building bridges, buildings, etc.
• RA, REA, CCA and NYA developed for agricultural relief.
• It was compulsory that agricultural tool prices increased.
• Keynes believed the depression was caused by inadequate demand and wanted the government to take action.