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Understanding the Great Depression: Causes and Impacts

Explore the factors leading to the Great Depression, including Black Tuesday, banking crisis, overproduction, the Fed's role, Gold Standard, tariffs, and current parallels like the 2008 housing crisis. Learn about Marjorie Krueger's story and political cartoons reflecting the era.

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Understanding the Great Depression: Causes and Impacts

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  1. The Causes of the Great Depression

  2. Black Tuesday • October 29th, 1929 • Brokers • Borrow on margin • Now cost to trade, most of the time • Bull Market • Bear Market

  3. Banking Crisis • Deposit money • Bank uses the money you have deposited to loan • Loans are paid back with interest • You take your money out as loan is being paid • 1920s banks loaned money to Brokers • October 1929, people began to worry • Bank runs • Panicked, withdrew money • Banks closed, savings vanished

  4. Overproduction and Underconsuption • Shrinking market for agriculture after the war years • Began 10 years before the rest of the country. • Assembly line • Why not just give our goods overseas? • Economic Terrorism • Company laid off workers • They had no money to spend • Downward spiral

  5. The Fed • Banks can borrow money from Federal Reserve Banks • Interest rates kept low • Did not expand money supply • Letting banks borrow more money

  6. The Gold Standard • Money supply would not vary, less inflation • Prices around the world moved together • Long time: Ounce of Gold for $20.67 • Roosevelt Devaluation1933: $35.00, only foreign governments and central banks • Payments, but could trade at some time for Gold • August 1971, suspending convertibility

  7. Tariffs • To pay the United States back Germany needed to sell product • Tariffs made that difficult • Trade war, raising tariffs higher • Record highs • Great Depression Spread around the World

  8. Current connections • Half of the $923 billion’s worth of currency in circulation is in the possession of foreigners. • Speculation, housing bubble • 2008, housing prices crashed • Houses sold for more than they were worth • Home loans for those that could not pay • Banks not receiving enough payments to stay afloat • Are we in a great depression: or just a very long recession

  9. How did Marjorie Krueger survive the Great Depression?

  10. Project Pieces/ Due Dates (may change)

  11. Questions • 4 Questions you would like to ask Marjorie Krueger, if you could about the start of the Great Depression. • Individual Grade • 1 point per question- • 4 times of asking questions = 16 point individually

  12. Causes Political Cartoons • 4 causes • 4 political cartoons • One Black Tuesday • One Bank Runs • One your research • One your research • Paragraph: Describes point of view, “quote”, how it describes the time period • Research: Sources MLA format • Cartoons Due: Wednesday 3/13 • 5 points per cartoon, (group grade)

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