The Great Depression

• Generally considered the dates throughout the great depression

  1929 - late 1930s
• Black Tuesday (stock market crash) the day the Great depression started

  October 24, 1929
• Major factors that led to the great depression

  • Stock market crash - a trigger not the sole cause
  • Inflated stock prices led to wiping out investor wealth causing a sharp decline in confidence of the economy and stock market
  • Unequal income distribution - the wealthy held a large share of wealth but there was limited consumer spending by the majority as the poor were becoming poorer
  • Bank failures a wave of bank failures due to risky loans and a lack of regulation → Depositors lost money and there was a decline in credit availability
  • Dust bowl a severe drought and dust storms, ravaged american agriculture, destructing farms which further decreased consumer spending
  • Protectionist trade policies - Countries raised tariffs (importing prices) to protect domestic industries , reducing international trade, and hindering global economic recovery
• Major factors and results of the treaties and peace pacts created during the great depression

  • Treaty of Locarno - France and Germany will never fight/war again → 1925
  • Kellogg-Briand peace pact Pledge to renounce war, had no means to enforce prevision, league of nationas had no armed forces, refusal to the join by the US weakened the peace pact → 1928
• Major impact of the stock market crash

  • Loss of confidence - the crash shattered confidence in investments, leading a decrease in investment and economic activity
  • Banks Runs - Fearful depositors rushed to withdraw their money from the banks, causing many banks to fail and go bankrupt
  • Deflation - Prices of goods and services constantly fell, hurting businesses and consumers (they make less money), as it discourages spending as people wait for the prices to drop
  • Poverty
  • Social unrest - people are dissatisfied with the status quo and are seeking change
  • Shortage in food supply
  • Unemployment - people are laid off due to deflation
• Important people and their time period in the Great depression


  • Herberd hoover 1929 - 1933' - US president during the early years of the depression, he faced criticisms his limited interventionist approach
  • Franklin D Roosevelt - 1933-1945 US president that implemented the new deal( a series of programs aimed at economic recovery and social reform)
  • John Maynard Keins a British economist whose theories on government intervention in the economy influenced the new deal
• The era caused the rise of labor unions and calls for government interventions in the economy
• The new deal, while not ending the depression, provided relief programs and infrastructure projects that helped lessen the hardships