The Great Depression- Cause and Effects

United States History: The Great Depression- Cause and Effects

By: Jason Bowman

Causes

• High Tariffs that discouraged international trade.

• Overspeculation of stocks, using borrowed money that people could not repay.

• Overproduction of consumer goods with a decline in demand.

• Federal Reserve failed ot prevent collapse of banking system.
  • Banks demand repayment of loans

Stock Market Crash of 1929

• Started after the roaring twenties

• Low stock resulted in rapid buying of stock

• Federal Reserve raised interest rates to slow down the economy

• Thursday October 24th 1929 a panic of selling stock

• Banks did not have enough money to pay for this

Effects

• Banks and businesses fail

• unemployment Increases

• Homes are lost thoughforeclosure

• People were in need of food

• Farmers' incomes fell to low levels

Franklin D. Roosevelt's "New Deal"

The New Deal consisted of large scale government finaced building and projects, for example roads were being built to relieve unemployment and provide a boost in the economy.  Many acts were passed with this like the Civilian Conservation Corps  and the Tennessee Valley Authority .