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GREAT DEPRESSiON VS. GREAT RECESSiON
Transcript of GREAT DEPRESSiON VS. GREAT RECESSiON
GREAT RECESSiON GREAT DEPRESSiON BACKGROUD October 1929
Approximately lasted 12 years
Unemployment dropped to 15% due to the New Deal Programs more than 11,000 banks had failed by 1933
WHAT WERE THE CAUSES? - STOCK MARKET CRASH OF 1929
On September 3, 1929, the Dow Jones was at a high of 381 points, and on October 29, 1929, it had fallen to 41 points after a week of panic selling.
was an accumilation of 3 days, Black Thursday, Black Monday, and Black Tuesday
estimated that 100 billion dollars was lost at the end of November
in the months of September and october the market lost 40% of its value
Wall Street around the time of the crash in 1929
Buying on credit people didn't take the future into consideration & started buying
cars, refrigerators, etc. with money they did not have
This system was called installment buying. With this system, people could make a monthly or weekly payment
The two systems, installment buying and buying on credit, left millions of people in debt . When many lost their jobs, they could not pay back the debts they had incurred
The Smoot-hawley tarriff The act was passed in June of 1930 and increased tariffs to a tax of 50 percent on goods imported into the United States.
"probably one of the most damaging pieces of legislation ever signed in the United States."
since the real effect of the increased tariffs was to increase prices and increase price rigidity, it is easy to see how the Act could have exacerbated the Depression.