The Great Depression was a period of very low economic activity and high unemployment that spread throughout the world during the 1930s. In the 1920s, the US economy boomed as factories produced goods and Americans borrowed money. However, overconfidence, excessive borrowing and spending, risky investments, and high production led to a stock market crash in 1929. As stock values fell and people withdrew money from banks, many banks failed, further weakening the economy. The effects included widespread bank and factory closures, high unemployment, homelessness, and reduced consumer spending and investment across the globe.

1. The Great Depression(1929-1939)

2. What was the Great Depression? The Great Depression: a period of very low economic activity and high unemployment that spread throughout the world during the 1930s

3. Economic Boom in the United States The Roaring 20’s American factories produced most of the world’s manufactured goods American workers made more money than workers in other countries Banks in the U.S. loaned other countries large amounts of money

4. Economic Struggles in Europe Most nations were deep in debt after World War I Many countries printed too much money and experienced inflation (money loses value and prices go up) Many European nations relied too much on the U.S. economy

5. Causes of the Great Depression Too much confidence in the economy Americans borrowed and spent too much People made careless investments Factories produced more goods than they could sell

6. The Stock Market Crash of 1929 The economy slowed down Stock values began to fall Investors panicked and too many people wanted to sell their stocks

7. The Stock Market Crash of 1929 Stockbrokers demanded that borrowers pay off loans People withdrew money from banks to pay off loans Many banks did not have enough money and had to close

8. The Stock Market Crash of 1929 Prices dropped further On October 29, 1929, Black Tuesday, values of stocks “crashed” to record lows

9. Effects of the Great Depression

10. Effects of the Great Depression

11. Many banks and factories closed People lost faith in the economy People bought less and invested less Many people became homeless Unemployment was at an all time high 1/4 Americans and British jobless 2/5 Germans jobless