Great Depression

In 1920's the wealth was unevenly spread

The less fortunate lost jobs and couldn't afford to live

A large sum of people began to make more money than they were making at the time

The "Fed" raised interest rates

Farmers began to face low prices and large debts

Caused Farmers to lose jobs and reduced Agriculture

Wages in 1929-1933 fell roughly 43%, and farm prices fell which caused many farmers to lose their jobs

A Five-year bull market had finished and peaked on 1929

investors began to sell (hitting a record of 12.8 million shares sold) which then caused panicking selling. then a few days later 16.4 million more shares were sold (a 12% Dow lost)

This was a $30 billion loss

The US had already spent $32 billion in World War I

Black Thursday, October 24th, 1929, was the day 16 million stocks were sold by investors who has panicked and lost faith in the american economy

The peak of the depression was in 1933 when 25% of the americans work force (12,830,000 people) were all unemployed

When people began to sell shares and stock prices began to drop, people went into a panic and sold everything that they had

This caused the stock prices to crash

This also caused banks to run out of money which required banks to take out loans or go out of business

War debts and high tariffs caused from the world war 1

This minimized global trade (imports and Exports)

Post World War I, Britain and France loaned money from american banks for restorations.

U.S. banks began to fail

U.S banks began to pressure the European countries for their money back

This pressure contributed to the global economic breakdown during the great depression

At the time of the beginning of the great depression, the president of the united states was Herbert Hoover, Who stayed in power throughout the great depression leading all the way into the beginning of World War II when Franklin D. Roosevelt took power

The Federal Reserves increased interests

The government did not let open market operations from keeping the money supply from falling