Chapter 30: The Great Depression

Michelle M
Slide Set by Michelle M, updated more than 1 year ago
Michelle M
Created by Michelle M over 5 years ago


High School Diploma History (Chapter 30: The Great Depression) Slide Set on Chapter 30: The Great Depression, created by Michelle M on 03/08/2016.

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Slide 2

    Shaky Stock Market Causes Bank Crises
    Caption: : Bank Runs Resulted from Stock Market Crash. Bank looked like an unsafe place to keep money. Due to bad lending on their part.
    Promise of Financial Gain: Speculative and Enthusiasm in Stock market.                                                                                       -Bull Market and Buying on Margin resulted. After Black Tuesday, Bear Market                                            -Bank Runs

Slide 3

    Too Much For Sale Too Little to Spend
    Caption: : Overproduction and Underconsumption
    Industries used the assembly-line method of mass production Overproduction resulted                                                              -Companies overproduced because they could. By 1929, buying spree coming to end                                     -Everyone had bought what they needed or already wanted by then. Underconsumption was a result of debt and lack of necessity in materials                                                                    -Unemployment resulted from underconsumption Underconsumption affected Farmers first                                  -After WW1 Consumptions of Products decreased and prices dropped

Slide 4

    Gov. Actions Makes a Bad situation Worse
    Caption: : Federal Reserve and Congress blamed for bad actions
    Federal Reserves controls nation's money supply                    -One way of doing this is by setting discount rate Before Stock Market, Feds kept rates low to keep money circulating through economy 1931, began raising discount rates                                          -Turned recession into an economic calamity Congress Passed Hawley-Smoot Tariff Act                                 -Triggered a trade war that ended up causing the Great Depression to spread around the globe.
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