The Great Depression

What was the Great Depression?

The Great Depression was a period of history whereby there was a severe worldwide economic recession.

Tell me about the Depression in 1930s America.

From 1929 onwards, the American economy fell into Depression - a time when businesses struggled to stay open, unemployment rose and poverty became a serious problem for millions of people.

When was the Great Depression?

The Great Depression lasted throughout most of the 1930s.

Who was affected by the Great Depression?

Many countries around the world were affected by the Great Depression including, America, Britain, France, Italy, Germany and Japan.

What was the cause of the Great Depression?

The Great Depression was caused by the impact of the Wall Street Crash in 1929.

What was the impact of the Great Depression?

The Great Depression resulted in widespread poverty across the world with many millions unemployed by 1932. The Great Depression had a grave economic impact for many years.

What was the significance of the Great Depression?

The Great Depression was significant for a number of reasons including:

• ❖ It led to the rise of world leaders that wanted to expand their borders to combat the effects of the depression.
• ❖ It also led to a decline in international cooperation between countries because nations had to focus on their domestic problems.
• ❖ Both these consequences led to significant problems for the League of Nations and ultimately led to the Second World War.

What is the cycle of depression in 1930s America?

From 1929, the US economy entered the cycle of Depression.

• ❖ With less money, people couldn't buy as many goods.
• ❖ As demands for goods dropped, factories had to cut back on production.
• ❖ When they cut production, factories reduced their workers' hours or put them out of work.
• ❖ With less employment, people had less money to spend on goods.

Why did people have less money in the Depression in 1930s America?

The Depression led to a huge reduction in income and loss of savings for many people.

• ❖ Between 1928 and 1933, average wages fell by 60%.
• ❖ By 1932 over 5,000 banks. 20% of all the banks in America had failed. Nine million customers lost all their savings.

Why was there less demand for goods in the Depression in 1930s America?

Americans couldn't afford to buy as many goods, but international trade dropped too as other countries were also hit by the Depression. By 1933, demand for goods was less than a third of its 1929 level.

Why was there less production in the Depression in 1930s America?

Because of reduced demand and lack of credit from the banks, businesses were forced to cut production and struggled to survive.

• ❖ Between 1928 and 1932, industrial and agricultural production levels fell by 40%.
• ❖ Between 1929 and 1933, over 100,000 businesses shut down completely. Many more laid workers off or cut their hours.

Why did people lose their jobs in the Depression in 1930s America?

Jobs became far more difficult to find and keep due to businesses failing and reduced production. By 1933, nearly a quarter of all Americans were unemployed.

How serious was poverty in the Depression in 1930s America?

The problems of the Depression meant that many Americans experienced serious poverty.

• ❖ In 1932 alone, a quarter of a million Americans lost their homes. Homeless people lived in shanty-towns called 'Hoovervilles' or travelled the country trying to find work.
• ❖ Without government help, many Americans were forced to rely on relief, and on charity or state-run soup kitchens for food. The queues outside these were called 'bread lines'.
• ❖ Some Americans suffered from serious malnutrition. In New York in 1932, 20,000 children had insufficient food and 45 people died in hospital of starvation.

What international problems did the Depression in 1930s America cause?

America had been supplying a lot of money in loans to Europe since the First World War. Once these loans stopped because of the Depression, European economies struggled and they couldn't buy American goods.