The Great Depression by Jack Greasley

jgreasle — 2024-10-24 06:45:09 UTC

What was it?

jgreasle — 2024-10-24 06:46:02 UTC

The Great Depression was a severe global economic downturn from 1929 to 1939 that affected many countries across the world. It became evident after a sharp decline in stock prices in the United States, the largest economy in the world at the time, leading to a period of economic depression

Other Resources

jgreasle — 2024-10-24 06:46:35 UTC

Key events

jgreasle — 2024-10-24 06:48:13 UTC

Stock Market Crash (1929): A massive drop in stock prices led to panic and a significant reduction in consumer demand as people lost savings and confidence in the economy.
Bank Failures: Thousands of banks collapsed, causing a drastic reduction in available credit, which reduced both consumer spending (demand) and business investment (supply).
Deflationary Spiral: Prices of goods and services dropped due to reduced demand, but this discouraged production and investment, worsening the supply-side contraction.
Unemployment Surge: As businesses cut production due to falling demand, mass layoffs occurred, leading to an unemployment rate of around 25%, further decreasing demand.
Agricultural Overproduction (1920s): Before the Depression, farmers had overproduced crops, leading to falling prices. During the Depression, demand for these goods fell even further, causing prices to plummet and farms to go bankrupt.
Global Trade Collapse: As countries imposed tariffs (e.g., Smoot-Hawley Tariff Act in 1930), international trade decreased dramatically. This led to reduced demand for exports and a decline in supply due to retaliation from trading partners.
New Deal Policies (1933-1939): The U.S. government, under Franklin D. Roosevelt, implemented programs to stimulate demand, such as job creation projects and direct financial aid, which helped to slowly revive demand and stabilize the economy.
Dust Bowl (1930s): Severe droughts in the U.S. Great Plains further reduced agricultural supply, exacerbating economic hardship in rural areas and increasing food prices in some regions.

key Figures

jgreasle — 2024-10-24 06:49:12 UTC

Herbert Hoover (U.S. President, 1929-1933)

President when the Great Depression began, Hoover initially believed in limited government intervention. His policies, including the Reconstruction Finance Corporation (RFC), were criticized as too late or inadequate in addressing the crisis.

2. Franklin D. Roosevelt (U.S. President, 1933-1945)

Elected during the height of the Depression, Roosevelt launched the New Deal, a series of programs and reforms aimed at boosting demand through job creation, social security, and financial system reforms. Key policies like the Social Security Act and the Wagner Act reshaped the American economy.

3. John Maynard Keynes (British Economist)

Keynes’ economic theories, advocating for government intervention to manage demand during economic downturns, were influential. His ideas provided the foundation for many of Roosevelt’s New Deal policies. His Keynesian economics would later become central to post-WWII economic recovery strategies.

4. Marriner S. Eccles (Federal Reserve Chairman, 1934-1948)

As Chairman of the Federal Reserve, Eccles advocated for monetary policies to increase demand, lower interest rates, and combat deflation during the Depression. His work helped reshape U.S. monetary policy during the crisis.

5. Eleanor Roosevelt (First Lady of the United States)

A key figure in advocating for civil rights and social welfare programs, Eleanor Roosevelt played an influential role in supporting New Deal policies that provided relief to marginalized and impoverished populations during the Depression.

6. Francis Perkins (U.S. Secretary of Labor, 1933-1945)

The first female Cabinet member, Perkins was a driving force behind key labor reforms, including the creation of Social Security and the establishment of the Fair Labor Standards Act, which introduced minimum wages and regulated working hours.

7. Huey Long (Louisiana Governor and U.S. Senator)

A populist critic of Roosevelt’s New Deal, Long proposed the “Share Our Wealth” program, advocating for wealth redistribution to combat income inequality during the Depression.

8. Milton Friedman (Economist)

Although his influence came later, Friedman argued that the Federal Reserve’s failure to prevent bank collapses and maintain monetary supply was a critical factor in deepening the Depression. His work reshaped views on monetary policy in later decades.

9. Dorothea Lange (Photographer)

Lange’s powerful images of poverty and hardship during the Great Depression, including her iconic photograph “Migrant Mother,” humanized the suffering of ordinary Americans and raised awareness of the Depression’s effects on the poor.

10. John Steinbeck (Author)

His novel The Grapes of Wrath (1939) portrayed the struggles of American farmers displaced by the Dust Bowl and the economic hardship of the Depression, capturing the public’s attention and influencing social awareness of the period.