Causes of the Great Depression

Political Effects
1. FDR elected in 1932
2. New Deal programs increase govt. role in economy
Economic Effects
1. Deflation
2. Unemployment at 25%
3. Drop in production
Economic Cause
1. Agricultural overproduction made a lot of produce cheaper and not a lot of revenue
2. Widening gap between rich and poor
3. Stock market crash due to buying stock on margin
Political Causes
1. Hoover follows hands-off policy towards business
2. Few regulations in place over companies
Millions of people in the United States (and around the world) had no jobs
Countless people became homeless
Uneven Distribution of Wealth
Banking and Federal Reserve System Monetary Policies Failed to Support Failing Banks
9,000 banks closed their doors between 1930 and 1933
Businesses also lost money

Resource summary

	Created by nehemiasvargas about 9 years ago