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Great Depression: Causes & New Deal

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Great Depression: Causes & New Deal

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Causes, effects, and New Deal basics

Created by

Cara Williams
Cara Williams
United States

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Great Depression: Causes & New Deal
 

Great Depression: Causes & New DealOnline version

Causes, effects, and New Deal basics

by Cara Williams
1

Causes of the Great Depression (Overview)

Key causes include risky borrowing, market crashes, and overproduction. Economic cycles expand and contract, creating instability that worsens during hard times.

2

Buying on Margin

Buying on margin means purchasing stocks with credit. When prices drop, borrowers and lenders both lose, increasing financial risk across the economy.

3

Black Tuesday

Black Tuesday (Oct 29, 1929) saw massive stock sell-offs. Few buyers stood ready, sending prices plummeting and signaling the downturn to come.

4

Stock Market Crash of 1929

Stock market collapse erased confidence and wealth, accelerating business slowdowns and unemployment across the country.

5

Business Cycle

Business cycle describes alternating periods of growth and contraction, shaping the depth and duration of economic downturns.

6

Installment Plans & Overproduction

Installment plans and overproduction left households with debt and unsold goods, driving prices down and layoffs up.

7

Bank Failures

Bank failures reduced money supply as withdrawals surged and loans went unpaid, crippling economic activity.

8

Effects on Americans

Unemployment rose, breadlines and soup kitchens fed the hungry, and Hoovervilles sheltered the homeless during hard times.

9

New Deal Overview (Relief, Recovery, Reform)

New Deal aimed to end the Depression with Relief, Recovery, and Reform across laws and agencies.

10

People & Leaders

Key figures include FDR, Frances Perkins, Huey Long, and John Steinbeck, shaping policy, culture, and reform.
 
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