Describe the causes, the course and the outcome of the Great Depression
I. October 24, 1929: Black Thursday
The New York Stock Market collapsed
=> investors panicked and sold at a loss
At first the crash appeared to influence only those who gambled and lost at the stock market. BUT soon: -signs of the crises
~ unemployment grew
~ industrial production, prices, wages fell
Reasons: -overproduction by business
-underconsumption
-1920s: rising productivity => enormous profits ~ unevenly distributed
II. Consequences
-cut back on production
=> downward economic spiral
>> unemployment
>> narrowed down the market => further cut backs on production
-the Great Depression (1929-33) meant financial, industrial and agricultural crisis.
-social tensions ~ political unrest
Solutions: -radical
-democratic
III. Solutions (the New Deal)
1929: Herbert Hoover (Am. president) expected that the crises would be over very
soon. 'prosperity is just around the corner.'
-he introduced only a few measures: ~ public works projects
~ government agency that lent money
BUT: these measures were not enough to overcome the crises.
1932: F. D. Roosevelt became the Am. president
-he introduced an economic and social program that was known as the
New Deal.
-New Deal was about state intervention
1. -to restore confidence in banks: ~ certain banks were reopened under
government supervision
2. -to solve the problem of unemployment and overproduction
~ AAA (agricultural adjustment act)
-it restricted the production of certain crops.
-paid bounties for uncultivated land
~ CCC (civilian conservation corps)
-national reforestation program
~ NIRA (national industrial recovery act)
-it meant the public works projects (building roads, bridges,
schools...)
~ TVA (
-regulation of the river controlling river floods
-reforestation
-electricity was provided for the rural areas along the river
3. Social program
~ Social Security Act
-it provided unemployment benefit
-old-age benefits/pension
~ National Labour Relations Act
-it guaranteed the rights for workers to organise trade unions
The American economy could gradually recover but since the 1930s the American
government has played a greater role than before.
Megjegyzés küldése