The Great Depression

1
The Great Depression

• Standard 7-5.3

2
Following World War I

• Many nations of the world experienced great
  economic growth.
• Unfortunately, this period of economic growth
  ended in an economic collapse was known as the
  Great Depression.

3
The Great Depression

• After World War I, people in the United States
  were excited about getting back to normal way of
  life.
• They began to buy more products so, manufactures
  began to send more items into the market.
• Eventually the demand for products decreased.
• Warehouses and stores had too many products, but
  manufactures continued to produce more.

4
The Great Depression

• The Government placed high taxes on foreign
  products.
• This made it harder for foreign countries to sell
  their goods to the United States.
• Since they could not sell their products, they
  could not afford to buy American products, adding
  to the problem of overfilled warehouses.

5
In October 1929

• The American stock market crashed.
• During the economic boom, many people had
  invested their money in the stock market.
• When the market crashed, the investors lost most
  of their money. It simply disappeared.

6
Stock Market Crash continued

• The stock market crash did not only affect the
  United States.
• It ruined the economies of nations everywhere.
• Banks and factories closed.
• People lost their jobs.
• The demand for raw resources from other nations
  decreased.

7
The Great Depression

• By the early 1930s, the world economy was
  destroyed trade declined and unemployment was at
  an all time high
• The world was in a complete depression.