The Great Depression

Causes of the Great depression

• Stock Market Crash
• Living on Credit
• Over Production of Custumer Goods

Stock Market Crash

• In the 20s, as more people invested in the stockmarket, the prices rose
• Stock prices peaked and then fell
• Investors quickly sold their shares and pulled out of the market
• People who had bought stocks on credit were left with huge debts

Living on Credit

• During the 1920s, many people bought their goods with credit
• People had trouble paying their debts
• Consumers started to cut back on spending

OverPRODUCTION of consumer goods

• People purchased goods on credit; couldn't pay off credit, so it left them in debt
• Demand for good started to rise, so factories started to produce more consumer goods
• Americans were unable to buy goods without jobs, and factories were unable to provide jobs because Americans couldn't buy goods

Short Term effects

• Agricultual Adjustment Act
• Civilian Conservation Corps
• National Industrial Recovery Act

AGRICULTURAL Adjustment Act

• Also known as AAA
• Sought to raise crop prices by lowering production
• Hoped that reducing supply would boost prices

CIVILIAN Conservation Corps

• Also knwn as CCC
• Put young men aged 18-25 to work building roads, developing parks, planting trees, etc
• 3 million men had passed through CCC by 1942 making $30 a month

National Industrial Recovery Act

• Also known as NIRA
• Provided money to states to create jobs
• Provided 4 million immediate jobs during the winter of 1933-1934

Long Term Effects

• Federal Deposit Insurance Corporation
• Social Security Act
• National Youth Administration

Federal deposit insurance corporation

• Also known as FDIC
• Provided federal insurance for individual bank accounts of up to $5000, reassuring millions of bank customers that their money was safe
• Required banks to act causiously with their customers' money

Social Security ACt

• The insurance was a supplemental retirement plan
• Half of the funds came from the worker and the other half from the employer
• The aid was paid for by federal funds made available to the states

National Youth Admission

• Also known as NYA
• Created specifically to provide education, jobs, conseling, and recreation for young people
• It provided student aid to high school, college, and graduate students

In my opinion, I don't think the U.S Government did enough to help citizens during the Great Depression. I feel like the government could have prevented the economy from collapsing as badly as it did.

The government did well passing Acts that supported the citizens. The government did not do well by not providing direct relief in a time of need.

Citizens did well by providing soup kitchens and bread lines. Citizens should have not purchased products with credit.