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The Great Depression A Historical Analysis - PPTX 123

The Great Depression was a severe global economic downturn from 1929 to the late 1930s, marked by the stock market crash of 1929 and resulting in widespread unemployment, business and bank failures, and a significant decline in production. Key causes included overextension of credit, overproduction, unequal income distribution, and global interconnectedness, which exacerbated the crisis worldwide. The New Deal policies introduced by FDR aimed to provide relief and reform, ultimately leading to economic recovery, which was further accelerated by the demands of World War II.

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Shambhavi Kashyap
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21 views10 pages

The Great Depression A Historical Analysis - PPTX 123

The Great Depression was a severe global economic downturn from 1929 to the late 1930s, marked by the stock market crash of 1929 and resulting in widespread unemployment, business and bank failures, and a significant decline in production. Key causes included overextension of credit, overproduction, unequal income distribution, and global interconnectedness, which exacerbated the crisis worldwide. The New Deal policies introduced by FDR aimed to provide relief and reform, ultimately leading to economic recovery, which was further accelerated by the demands of World War II.

Uploaded by

Shambhavi Kashyap
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as PPTX, PDF, TXT or read online on Scribd
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The Great Depression:

A Historical Analysis
Causes, Impacts, and Lessons Learned

Presented by: Isha Sinha, Shambhavi Kashyap, Shubhangi Verma,


Swastik Kumari, Vanshika Gautam, Vijaya Lakshmi.
Understanding the Great Depression
Definition Significance

The Great Depression was a severe worldwide Understanding the Great Depression provides valuable
economic downturn that lasted from 1929 to the late insights into the complex dynamics of global
1930s. It was the longest and most severe depression economies, highlighting the vulnerability of unchecked
ever experienced by the industrialized world. economic growth and the importance of robust
economic policies.
The 1920s Economic
Boom and Bust
Post-WWI Unbalanced
Prosperity Growth
Following World War I, the However, this growth was
US enjoyed a period of fueled by speculative
unprecedented economic investments,
growth, driven by unsustainable credit
technological expansion, and uneven
advancements and income distribution,
consumer spending. creating an economic
bubble.
Overproduction and Stagnation
Excessive production outpaced consumer demand, leading to
surplus inventory and falling prices, further weakening the
economy.
The Stock Market Crash of
1929
Black Tuesday
On October 29, 1929, the stock market experienced a
catastrophic crash, wiping out billions of dollars in wealth
overnight.

Panic and Loss of Confidence


The crash triggered a wave of panic and loss of confidence in
the financial system, leading to widespread bank failures and
a sharp decline in economic activity.

The Beginning of the Depression


The stock market crash marked the beginning of the Great
Depression, setting off a chain reaction of economic disasters
around the world.
Causes of the Great
Depression

Overextension of Credit Overproduction and


Stagnation
Excessive credit expansion fueled
speculative investments, creating an Overproduction led to surplus
unsustainable economic bubble. inventory and falling prices, further
weakening the economy.

Unequal Income Global Interconnectedness


Distribution
The interconnected nature of global
Wealth was concentrated among a economies magnified the impact of
small elite, leaving a large segment of the crisis, leading to a worldwide
the population with limited purchasing economic downturn.
power.
Impact on the US Economy
Unemployment
Unemployment rates soared, reaching an unprecedented 25% in 1933, leading to
1
widespread poverty and hardship.

Business Failures
2 Businesses across industries collapsed, leaving millions jobless and struggling to
make ends meet.

Bank Failures
3 Thousands of banks failed, wiping out people's savings and further
eroding confidence in the financial system.

Decline in Production
4 Industrial production plummeted by nearly 50% between 1929
and 1933, halting economic growth and perpetuating the
depression.
Global Cascading Effects
1 International Trade
International trade collapsed as countries imposed tariffs
and restrictions, hindering global economic recovery.

2 Financial Crisis
The collapse of the US stock market triggered a financial
crisis, leading to bank failures and economic turmoil in
Europe and other parts of the world.

3 Global Recession
The Great Depression spread rapidly across the globe,
plunging countries into a severe recession, characterized
by unemployment, poverty, and social unrest.
The Dust Bowl and Agricultural Crisis
Drought and Dust Storms
1 A severe drought in the 1930s, coupled with unsustainable farming practices, led to massive
dust storms that devastated the Great Plains region.

Farm Failures
2 Farmers lost their livelihoods, forced to abandon their land, and migrate
to other regions, contributing to the economic crisis.

Food Shortages
The agricultural crisis disrupted food production,
3
leading to shortages and further exacerbating the
hardship faced by millions.
Government Response
and New Deal Policies
FDR's Presidency New Deal Programs
Franklin Delano Roosevelt's The New Deal, a series of
presidency marked a turning government programs, focused
point in the fight against the on providing relief, recovery,
Great Depression. and reform to stimulate the
economy and alleviate hardship.

Key Initiatives Long-Term Impact


Key initiatives included public The New Deal significantly
works projects, social security, reshaped the US government's
and financial regulations, role in the economy, laying the
aiming to restore economic foundation for social safety nets
stability and create jobs. and government intervention in
times of crisis.
The End of the Great
Depression and World War II

1 2
Wartime Economy Economic Recovery
World War II played a significant role in The war effort led to a surge in demand
ending the Great Depression, boosting for goods and services, reviving the
industrial production and creating jobs. economy and ushering in a period of
sustained growth.

3
Lessons Learned
The Great Depression served as a
powerful reminder of the importance of
economic diversification, financial
regulation, and social safety nets.

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