Great Depression

B.   The Great Depression (1929-1941)

    1.   What was “The Great Depression”?

                    a.   The Great Depression was the most severe economic “slow down” in

                        U.S. history.

                    b.   The Great Depression lasted longer than any other economic slow

                        down in U.S. history.

                        1) “Black Tuesday” – the day of the “stock market crash” on October

                              29, 1929; Black Tuesday is considered to be the beginning of the

                              Great Depression

    2.   What caused of the Great Depression?

a.   International Depression

1)       European governments were in debt from WWI.

2)       European citizens couldn’t buy American products because they

      were still trying to recover and rebuild from WWI.

        b.   Overproduction

              1)   Industrial Overproduction – U.S. factories produced too many goods

                    a)   By the end of the “Roaring 20’s, American businesses produced

                        more goods than Americans could buy;

                    b)   Eventually factories cut production and fired extra workers

                        which caused the economy to slow down.

                2)   Agricultural Overproduction – farmers were producing too much

                    a)   U.S. farmers grew more food than they could sell.

                    b)   Also, competition from European farmers drove down the price

                        of farm goods.

                    c)   By the end of the middle of the1920’s U.S. farmers were

                        already in a depression

                    c)   Many farmers stopped buying machinery and household goods

                        causing the economy to slow down.

        c.   Installment Buying

              1)   Many Americans bought goods on credit, but...