The Great Depression

The Great Depression

By J Coco

​Major events during the Great Depression were:

• Overproduction and drop in demand

• Crash leads to collapse

• ​The depression spreads around the world.

​The Great Depression began in the United States and spread around the world.

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Multiple Choice

The Great Depression began in

• Asia

• Africa

• USA

Overproduction and Drop in Demand

Overproduction created a backlog of unsold goods, leading businesses to cut back on output and lay off workers.

Factories and farms produced more goods than were being sold.

In other words, supply outplaced demand. ​

Overproduction

Crash Leads to Collapse

The US economy was central to the international network of trade and finance. When it became inconsistent, it set off a downward spiral of motion that surrounded much of the world. Production in the United States declined. Americans had little or no money to invest abroad. Without this money, Europeans could no longer afford American goods and they were unable to pay back loans from the USA. (Lets take a look at page 648).

Multiple Choice

Who raised interest rates in the US?

• Federal Reserve

• International Bank of Great Britain

The Depression Spreads Around the World

American banks stopped investing or making loans abroad and demanded repayment of foreign loans. Without new investments, European prosperity slowed.

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The US imposed highest tariffs (taxes) in its history. This later backfired, when other nations retaliated​ (strike back), by raising their tariffs.

The Great Depression​

​https://youtu.be/surDj9s2BG8