Great Depression.docx

Great Depression When:- 29 October 1929 – 1939 What happens? The Great Depression, which began in the United States in 1929 and spread worldwide, was the longest and most severe economic downturn in modern history. It was marked by steep declines in industrial production and in prices (deflation), mass unemployment, banking panics, and sharp increases in rates of poverty and homelessness. Causes: 1.The stock market crash of 1929 shattered confidence in the American economy, resulting in sharp reductions in spending and investment. 2. Banking panics in the early 1930s caused many banks to fail, decreasing the pool of money available for loans. 3.The gold standard required foreign central banks to raise interest rates to counteract trade imbalances with the United States, depressing spending and investment in those countries. 4. The Smoot-Hawley Tariff Act (1930) imposed steep tariffs on many industrial and agricultural goods, inviting retaliatory measures that ultimately reduced output and caused global trade to contract.

Affect on American economy:

where the Depression was generally worst, industrial production between 1929 and 1933 fell by nearly 47 percent, gross domestic product (GDP) declined by 30 percent, and unemployment reached more than 20 percent. When did it end? the Great Depression was technically over by 1933 Affect on literature and culture? - CRIME RATE as many unemployed workers - Prostitution was on the rise as desperate women sought ways to pay the bills. - more and more people turned to the mass media for entertainment - Cigar smoking became too expensive, so many Americans switched to cheaper cigarettes. - Alcoholism increased with Americans - many decided to stay in school longer - many schools to open understaffed or close due to lack of funds... - Marriages were delayed as many males waited until they could provide for a family before proposing to a prospective spouse. Divorce rates dropped steadily in the 1930s. Rates of abandonment increased as many husbands chose the "poor man's divorce" option — they just ran away from their marriages. Birth rates fell sharply, especially during the lowest points of the

Depression. More and more Americans learned about birth control to avoid the added expenses of unexpected children. - Radio flourished as those who owned a radio set before the crash could listen for free. President Roosevelt made wide use of radio technology with his periodic "fireside chats" to keep the public informed. http://www.ushistory.org/us/48e.asp https://www.britannica.com/event/World-War-II

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