THE GREAT DEPRESSION

CRASH OF 1929

• Major withdrawal caused the stock market to crash
• Millions lost their life savings
• Bankrupted companies, hard to get loans
• Us economy, and the world's, ground to a halt
• Investors withdrew from Europe, halting capital

FAMILIES

• Jobs dropped as businesses lost money
• Unemployment hovered around 25% or so
• Women got power as they took on jobs
• Many farmers lost their jobs
• Shantytowns were full of homeless people

THE NEW DEAL

• SOCIAL REFORMS
• Employed people by building things
• Bridges, airports, dams, roads, and more
• Forestation and flood control to reclaim land
• Slashed unemployment

THE NEW DEAL

• FARMING REFORMS
• Emphasis put on rural areas and farmers
• Built schools, roads and other utilities
• Deforestation to reclaim crop land
• Build farmer opportunities and salaries

KEYNESIAN ECONOMICS

• The idea that total input influences an economy
• Short run only, often causes debt problems later
• Also affects production, employment and inflation
• Greatly influenced economies during the depression
• Developed by John Maynard Keynes