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America's Depression

Cause and Effect

Overproduction: Surplus of goods leads to ____________________(1) (Cause) Falling prices
Overproduction: Falling prices leads to________________________(2) (Cause) Companies losing money
Overproduction: Companies losing money leads to ___________(3) (Cause) Workers losing jobs
October 29, 1929 - A "panic" (rush to sell) leads to a decline in stock prices. Billions of $$$$$$ lost. (Cause) Stock Market Crash
What caused the banks to collapse during the Great Depression? Banks lost the depositor's money to the collapsing stock market and the inability of customers to pay back their bank loans.
What were the main causes of the farming disaster during the Great Depression? 1. Farmers borrowed money to buy land and equipment. They overproduced. Europe did not need our crops and farmers were stuck with surplus and bills. 2. The Dustbowl - Severe drought and poor soil management ruined millions of acres of farmland.
What were the main effects of the Great Depression? 1. Unpopular government under Herbert Hoover. He raised taxes. 2. FDR was elected President. He promised America a New Deal.
What was the significance of the New Deal? Government becomes actively involved in the lives of citizens like never before.
Created by: Barbara Conway



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