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4SE 8. THE ROARING TWENTIES AND THE CRASH OF 29

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Transcript

the roaring twenties and the crash of 29

Unit 8

Start

03. STOCK MARKET CRASH

04. THE GREAT DEPRESSION

05. THE NEW DEAL

02. THE ROARING TWENTIES

index

THE ROARING TWENTIES

DURING WWI
AFTER WWI

The country that benefited most from World War I was the United States

THE ROARING TWENTIES

02

The causes

OVER- PRODUCTION
STOCK MARKET BOOM
MASS CONSUMPTION

03

STOCK MARKET CRASH

STOCK MARKET CRASH

Many shareholders knew that the stock price was much higher than its real value and that it would not continue to rise forever.

The facts

03

Within a few years, the stock market crash spread to industry, commerce, and agriculture, leading to a general economic crisis known as the Great Depression.

04

THE GREAT DEPRESSION

SOCIAL REFORMS

ECONOMIC REFORMS

In 1932, one of the worst years of the Great Depression, Franklin D. Roosevelt won the US presidential election. The new president proposed a new political program to overcome the crisis called the New Deal. These policies argued that the government had to revitalize the economy through economic and social reforms.

05

THE NEW DEAL

+ INFO...

American growth continued throughout the 1920s: it was the decade of prosperity and the consolidation of the American way of life based on consumerism. The United States became a paradise for millions of immigrants from around the world seeking the American dream.

Reducing work week

Increasing wages

Increasingemployment

The New Deal revived the American economy and significantly reduced unemployment. In 1934, productivity reached 1929 levels after four years of decline. People had more money, so demand and spending increased. Despite the improvements, the United States did not emerge from the crisis until the beginning of World War II, when the new needs for rearmament and supplies of the warring countries made the United States the main supplier to the Allies.

Economic prosperity meant rapid growth in the stock market. Investors bought shares to make very short-term profits. The investment frenzy led many investors to take out loans to buy shares.

The economic reforms were accompanied by social reforms

Public works

Increasing wages

BANKRUPTCY OF BANKS

THEY CAN´T PAY LOANS

NO MONEY FOR EVERYONE

Everyone went to banks to withdraw their money

INVESTORS IN RUINS

To prevent falling prices and stimulate demand, the New Deal proposed a series of economic reforms:

Control over banks

Agricultural surpluses

Public companies

PRICES

PRICES

EXPORTS

EXPORTS

DURING THE WAR
AFTER THE WAR