1919-1929 Great Years1929-1941 Great Depression

Causes of the Great Depression1) Farmers started to lose money b/c

European farms were back in operation2) Factory workers started losing money b/c the Smoot-Hawley Tariff put a huge tax on

imported goods a. Why did the US govt tax imports? To protect US jobs b. Why didn’t the tariffs work?

European countries taxed US goods sold there b/c we were taxing their goods

3) Buying on credit had been too high in the 1920’sa. people stopped buying new goods to pay off old debts

4)People were borrowing money to buy stock:a. people thought stock values were going to increase instead stock values went downb. people couldn’t pay off the bank loans they got to buy the stockc.people who lost jobs went to withdraw their savingsd.banks didn’t have money to give them b/c it had all been lent out.e. banks declared bankruptcyf.25% of Americans became unemployed

Solutions to end the Great DepressionPresident Herbert Hoover said to:

a. lend money to banks, business and ins companies to get the econ. Moving

b. gave no aid to those who were unemployed

FDR’s plan to end the Great Depression was to create a New Deal in which:a. Glass-Stegall Act regulates stock market, investments, and bankingb. insured bank depositsc. created Social Security to help old peopled. put people to work building roads, dams, bridges,post offices, parks and other government projects

**Under Roosevelt’s term in office the govt took an active role in the economy that is still with us