THE GREAT DEPRESSION

CRASH OF 1929

• Late on October 24th, 1929, the Wall Street stock market crashed.
• This was due mostly to an excess of suburban living, and neglect to the nations farming
• The crash left the country's businesses in a 10 year state of depression.

FAMILIES

• After the crash, many got out of the market and lost jobs
• Unemployment at its highest was 25%!
• Many people were forced to leave and revert back to agriculture
• Wages dropped drastically, leaving many stranded and in poverty
• Shantytowns were essentially favelas (cramped slums) in an industrial environment

THE NEW DEAL

• Jobs were forced upon the people in an effort of revitalizing the economy.
• These jobs varied from banking and railroads to industry and farming.
• Keynesian economics served as the economic model in the later part of the Great Depression.
• It is the belief that economic output is strongly influenced by aggregate demand.