this is one of the most demanding and soughted ppt searched by students .i have put many intellctual insights about reasons of great depression 1930 that not only falsified the economic classical theory of jb says but also noviated the birth of new econmical perspective.

1. THE GREAT DEPRESSIO
1930S
BY MANISH SHIVALE
EMAIL ID : MANISHSHIVALEROCKSTAR@GMAIL.COM

2. OCTOBER 24 , 1929

3. • New fangled technology , like the radio (R.C.A)
and the car ( ford started mass production) coupled with
real state speculation created an economic temperament of
SPECULATION: Too many Americans were engaged in
speculation- buying stocks and bonds hoping for a quick
profit.

4. : Americans were buying “on
margin”-paying a small percentage of a
stock’s price as a down payment and
borrowing the rest.

6. : farmers could not pay back the loans they took out during
WWI due to an decrease in the prices of agricultural goods
(econ. historians view this as a reason that contributed to
the banking panics)

7. : In an attempt to regulate/ limit stock market speculation, a tight
monetary policy was implemented in the Summer of 1929.
The Federal Reserve raised interest rates to slow the rise in stock
prices in 1928 and 1929

8. Consequently, consumer demand fell as higher interest rates
depressed interest-sensitive spending/investment, such as auto
purchases as well as construction causing an oversupply
Excess supply led to a drop in prices, which led to a drop in
production
It also transmitted to other countries as high interest rates
decreased lending to foreign nations, which caused their output
to drop

10. • Black Thursday ( october 24) - a record 12,894,650
shares traded.
• Black Friday- investment companies and leading
bankers attempted to stabilize the market by buying up
great blocks of stock.
• Black Monday- market went into free fall.

12. 16 million
shares
traded

14. • Private construction virtually ceases.
• Mills and factories shut down.
• Railroads come to a virtually standstill.
• Millions of Americans –men ,women, children-
wait in the cold on the breadlines in soup
kitchens.

16. • Due to pessimism about the future, people wanted currency so they
rushed to the banks and demanded their deposits in Fall of 1930,
Spring and Fall of1931, and Fall of 1932 &33
• Many banks found themselves short of funds because they could not
liquidate loans

17. • Response: FDR declared a national “bank holiday” on March 9, 1933
that closed down banks until deemed solvent
Around 9,000 banks failed
• Such panics reduced the money supply

18. • 13 million people became unemployed.
• In 1932, 34 million people belonged to families
with no regular full-time wage earner.
• The income of the average American family was
reduced by 40%.

19. • 2 million homeless people migration around the
country.
• Over 60% of Americans were categorized as
poor by the federal government in 1933.

21. • Some families were forced to live in shanty towns
• A grouping of shacks and tents in vacant lots
• They were referred to as “Hooverville” because
of President Hoover’s lack of help during the depression
• Poverty and crime spread throughout US.

22. • Finally , In 1936

23. • In good times, government should reduce
their spending and build surpluses. In bad
times like in depression they should step
up spending, run deficits and put
purchasing power into the hands of
working people.

24. • Keynes idea began to gain ground.
• US government borrowed money and pumped it into the war effort,
high employment ended and the DEPRESSION DISAPPEARED.

25. • Men and women to make the uniform.
• Machinists to make the gun and ammunition.
• Auto workers to produce the jeeps trucks ,to
build the ships and tanks.
• Civilians soldiers to turn out the fighters and
soldiers.

26. • Keynes expressed his hope:

27. THANK YOU