The Depression

1. 1922- Prosperity came to the cities. It depended on the cars, buildings, sales, and roads. All this with the credit for buying new material goods.

2. 10%margin- The people thought that the stock market would always go up, but it is based on stock buying.

3. Economy- Economic prosperity came to many and mostly the rich people. Very unbalanced economy but it was very unstable.

4. Farmers- They have been in a depression since the end of WWI when foreign markets started growing their own goods, but this time they weren’t able to recover.

5. Banks- The banks and the people were really hurt by war debt and their bad situation.

6. The Crash- The fall of the rest of the economy was caused by the stock market crash.

7. Foreign Markets- Closed down because tariffs and international depression.

8. Broke- Everyone was starting to become broke like the farmers and people began to lose everything.

9. Failed Economy- Workers were making too little to buy enough to stimulate the falling economy.

10. Workers- They make to little to pay back credit and margin buying.

Quotes

* “We still pray to be given each day our daily bread…Why is mankind being asked to go hungry and cold and poverty stricken in the midst of plenty?”

* “The Great Depression, like most other periods of severe unemployment, was produced by government mismanagement rather than by any inherent instability of the private economy.”

* FDR - We have two problems: first, to meet the immediate distress; second, to build up on a basis of permanent employment. As to "immediate relief," the first principle is that this nation...owes a positive duty that no citizen shall be permitted to starve....In addition to providing emergency relief, the Federal Government should and must provide temporary work wherever that is possible.

Summary of the Great Depression

The Great depression was an awful time in our United States History. In the 1920’s the stock market crashed, and most workers, farmers and families lost everything. Life was going very well for everyone especially for the rich, but the people thought that the stock market would always go up and they were soon to find out that isn’t true. Workers were making so little that they couldn’t even buy enough to stimulate the failed economy. They make to little to pay back the credit and margin buying of the 20s. The stock market crash triggered the fall of the rest of the economy and margin buying hurt individuals, bankers, and bank owners were unable to recover from the sudden drop. The Great Depression brought on a very unbalanced economy and very unstable way of life for the people.