Download The Great Depresssion

The Great
Depression
A Cross-Curricular Analysis
GDP - Gross Domestic Product
Market value of all goods and
services produced
Inflation
A rise in the general price of goods and
services over time….
Or
A decrease in the purchasing power of
money caused by too much money
chasing too few goods and services.
Deflation
A decrease in the general price level of
goods and services – below 0% inflation.
CPI - Consumer Price Index
The CPI measures changes in the
price level of consumer goods
and services purchased by
households.
The Gold Standard
A monetary system in which gold
does not circulate but in which
the government agrees to sell
gold at a fixed price in exchange
for the circulating currency. In
the US, that fixed price was 40%.
What started it
And
Why did it continue?
Numbers of Banks and Bank Suspensions
Year
Number as of 12-31
Suspensions
1929
24,633
659
1930
22,773
1350
1931
19,970
2293
1932
18,397
1453
1933
15,015
4000
1934
16,096
57
Data are from Banking and Monetary Statistics, Board of Governors of the Federal
Reserve System, 1943, pages 18 and 283.
The New Deal - Did it work?
SEC Acts of 1933 and
1934
Banking Act of 1933
(Glass-Stegall)
CCC- Civilian Conservation Corps
What finally pulled us out?
Lessons
It’s a worldwide problem.
The best solution is to keep it from
happening.
Money flow is essential.